Fix transfer to easy / fix cancellation

savit4l8er

Let's say you have a fixed rate ISA in place, you find its beneficial to move it to another provider.  The money moves minus any penalty.  

A few days later you change your mind and want to cancel the new ISA.  What happens to the money since the old account is closed. Is your option to swiftly instruct another ISA provider to take it on inside your cooling off period which could be tight.  Likely, easier to an account with the same new provider if they have one ( like Virgin for example)

In some situations, would it be reasonabke to transfer the original fix to an easy access you may already hold and then move to the new provider. If you change your mind about the new account,  the money can be returned to your easy access account which was left open.

This question has come to mind because I plan moving a fix to a fix and just wondered about the procedure.  It's seems more set up for new subscriptions where the ISA is cancelled entirely and you get your money back. 

I appreciate there would be a delay moving to the envisaged future home for the money via the intermediary ISA that might cost one way or another. 

Doctor_Who

A few days later you change your mind and want to cancel the new ISA.  What happens to the money since the old account is closed.

My guess (and it is a guess!) is that the old account will be reopened and the money returned to it. Personally, I'd try to avoid being in this situation!

In some situations, would it be reasonabke to transfer the original fix to an easy access you may already hold and then move to the new provider. If you change your mind about the new account,  the money can be returned to your easy access account which was left open.

Sounds a reasonable idea if you know you might want to change your mind about the new ISA. If it were me, I'd do all of my research upfront, open the account I wanted and then initiate the transfer and leave well alone. 

savit4l8er

Thank you, yes, agree fully, try and avoid it but things happen, maybe a significantly better rate comes along and there isn't time to swap. Example, in the case of the NatWest scenario that some have encountered, seemed to take longer than necessary and some gave up. 

I suppose the best way is to ask the original provider what they will do but conversations, chats etc. as we all know are only as good as the person you deal with. 

Albermarle

savit4l8er said:

Thank you, yes, agree fully, try and avoid it but things happen, maybe a significantly better rate comes along and there isn't time to swap. Example, in the case of the NatWest scenario that some have encountered, seemed to take longer than necessary and some gave up. 

I suppose the best way is to ask the original provider what they will do but conversations, chats etc. as we all know are only as good as the person you deal with. 

I could envisage your money lost in the ether for months if you try and move it back to a previously closed account. Plus you will be on the phone a lot !
To be avoided at all costs I think,

savit4l8er

It is and it's not something I plan to experience, I have moved ISA 's about a good few times, I just wondered if anyone had experience to say what had happened to them just in case the situation ever arose. 

I know you wouldn't say avoid at all costs if you didn't mean it, you have seen most of the pitfalls and wisely think ahead, it's what I am trying to do too. 

Thank you for your warning, it's noted. 😂