Can't transfer Natwest Fixed ISA that’s yet to mature into new Natwest Fixed ISA

ToTo_Man

i opened a Natwest 1Yr Fixed ISA at the beginning of June when the rate was 4.40%.  Their 2Yr Fixed ISA Rate is currently 5.90%, which is significantly more lucrative even after accounting for the interest penalty.  Natwest's T&Cs state they accept internal transfers so I thought it would simply be a case of entering the a/c details of the 1Yr fix I want transferred during the application process and they would then transfer the entire balance of the account over minus the interest penalty.  However, it seems it isn't possible to internally transfer a fixed ISA that hasn't matured, at least not online.  Is this unique to Natwest or do all banks impose this restriction?

Billxx

I am not 100% sure but I think that under the T&Cs of the Natwest Fixed ISA you cannot make withdrawals.  The only way you can move that money is to close the account.

ToTo_Man

Billxx said:

I am not 100% sure but I think that under the T&Cs of the Natwest Fixed ISA you cannot make withdrawals.  The only way you can move that money is to close the account.

Closing a Fixed ISA apparently needs to be done in branch, which is somewhat inconvenient for me.

Doctor_Who

Do you have to convert it to a variable rate cash ISA first and pay the penalty fee, then you may be allowed to transfer it online to the new fixed rate ISA. That would seem to be what's described for the current fixed rate ISAs in the Summary Box (scroll down to transferring your ISA):

https://www.natwest.com/savings/isa-overview/fixed-isa.html