Should I transfer ISA from Santander?

Henno

So, 3 months ago I decided to put my money into Santander's 18 month fixed rate ISA which, at the time, was a good 4.25%.

I now see NatWest are offering 5.7% on their 1 year fixed rate ISA.

My question is, do I close the Santander one and transfer to NatWest or keep with Santander? I would lose the 120 days interest which means I've basically gained nothing for the last 3 months but would I be better in the long run? 

I'm not sure on the maths so if anyone could steer me in the right direction I'd be grateful.

Thanks for your time.

Doctor_Who

The MSE Ditch my fixed cash ISA? calculator does the calculations for you. However, it will assume that the new rate is for the remainder of the 18 month term (~15 months), not the 12 month term of the new ISA. It will give you an idea of if it's worth switching and paying the fee.

https://www.moneysavingexpert.com/savings/isa-switch-calc/

frugalmacdugal

Hi,

don't close or you will lose the ISA benefit, if you decide to transfer your new choice ISA will initiate transfer for you.

Henno

It looks like I'd be a little better off by switching but I'm not sure it's worth the hassle.

Thank you for the calculator, I didn't realise that was available.

Bigwheels1111

At least wait a week or two.

The BOE sit in 11 days and rates are expected to rise.

So savings might as well.

I will work it out with 10k ISA as you have not said the total.

Santander's 18 month with 10k = £646.53 interest if compounded for 18 months.

The penalty for leaving is £139.72 ish.

Nat west 1 year at 5.7%= £570 interest - Santander's penalty £139.72 = £430.28

It will be less than example as the penalty will leave you less than you started with £9965.07.

I think I would stay put.

£5.28 more if Ive worked it out right on 10k, but you wont have 10k.

Henno

Bigwheels1111 said:

At least wait a week or two.

The BOE sit in 11 days and rates are expected to rise.

So savings might as well.

I will work it out with 10k ISA as you have not said the total.

Santander's 18 month with 10k = £646.53 interest if compounded for 18 months.

The penalty for leaving is £139.72 ish.

Nat west 1 year at 5.7%= £570 interest - Santander's penalty £139.72 = £430.28

It will be less than example as the penalty will leave you less than you started with £9965.07.

I think I would stay put.

£5.28 more if Ive worked it out right on 10k, but you wont have 10k.

Thank you for that, appreciate your time.