Question about Fixed ISA with ~10 months left at Charter Bank

puzl

I am currently on the following:

1 YEAR FIXED RATE CASH ISA

Current Interest Rate (Gross): 4.17%

Maturity Date: 11/05/2024

Since I applied, the new Fixed Rate interest at Charter is now 5.2%. Obviously this is a pretty significant rise.

Is it possible to get on this new rate by contacting Charter, or am I stuck with them unless I re-apply (and lose 90 days interest) ? In addition, this penalty is only on the interest I gained since I used them, right? It won't actually take 90 days worth of money from my entire ISA, as I haven't even been with them for this amount of time. If it does, then obviously it's not worth the bother.

TIA.

Ayr_Rage

The leaving penalty will be 90 days interest and that will be taken from the capital if necessary.

puzl

Ayr_Rage said:

The leaving penalty will be 90 days interest and that will be taken from the capital if necessary.

Figures!

Is it technically leaving if I'm with the same provider though?

Doctor_Who

puzl said:

I am currently on the following:

1 YEAR FIXED RATE CASH ISA

Current Interest Rate (Gross): 4.17%

Maturity Date: 11/05/2024

Since I applied, the new Fixed Rate interest at Charter is now 5.2%. Obviously this is a pretty significant rise.

Is it possible to get on this new rate by contacting Charter, or am I stuck with them unless I re-apply (and lose 90 days interest) ? In addition, this penalty is only on the interest I gained since I used them, right? It won't actually take 90 days worth of money from my entire ISA, as I haven't even been with them for this amount of time. If it does, then obviously it's not worth the bother.

TIA.

You need to read the T&Cs, but in general your statement is not correct and 90 day's interest will be taken as a penalty for closing the account early.

Ayr_Rage

puzl said:

Ayr_Rage said:

The leaving penalty will be 90 days interest and that will be taken from the capital if necessary.

Figures!

Is it technically leaving if I'm with the same provider though?

I should have said the penalty for closing the account, not leaving.

Ayr_Rage

From the Ts and Cs

• Yes, you can withdraw all or part of the money during the Fixed Rate Period, provided that any partial withdrawal does not reduce the Account balance below the minimum balance of £5,000. This is subject to a charge, by way of a loss of 90 days interest on the amount withdrawn. This may be deducted from the balance in your Account on closure and therefore you may receive back less than you have paid in.

Albermarle

puzl said:

I am currently on the following:

1 YEAR FIXED RATE CASH ISA

Current Interest Rate (Gross): 4.17%

Maturity Date: 11/05/2024

Since I applied, the new Fixed Rate interest at Charter is now 5.2%. Obviously this is a pretty significant rise.

Is it possible to get on this new rate by contacting Charter, or am I stuck with them unless I re-apply (and lose 90 days interest) ? In addition, this penalty is only on the interest I gained since I used them, right? It won't actually take 90 days worth of money from my entire ISA, as I haven't even been with them for this amount of time. If it does, then obviously it's not worth the bother.

TIA.

For info, there is a separate sub forum for ISA questions.  ISAs & tax-free savings — MoneySavingExpert Forum

badger09

The whole point of taking out a Fixed Rate account is that both sides know what the interest rate is & how long it lasts. 

Because interest rates have risen so steeply, many posters are now questioning their previous decisions to fix. However, when interest rates are falling, we don’t see any posts asking if it’s possible to swap to those lower rates🤔
You opt for certainty. Sometimes you win, sometimes you lose. 

Catplan

Pop figures in here https://www.moneysavingexpert.com/savings/isa-switch-calc/

boingy

At least you can get out of a fixed rate ISA early, albeit with a penalty.
For normal fixed rate accounts you have to die to get the money back early.   

Albermarle

boingy said:

At least you can get out of a fixed rate ISA early, albeit with a penalty.
For normal fixed rate accounts you have to die to get the money back early.   

There are actually a very small number that do allow withdrawals,

First Direct one year fix you can get out of for a fee of £100.
Halifax allow withdrawals with a penalty ( similar to an ISA penalty)