Transferring 2 year fixed to one year fixed

surreysaver

I currently have a Virgin Money 2 year fixed ISA paying 4.36% maturing 24th October 2024.  There is a 90 day interest penalty for early closure.
I am considering transferring it to the Virgin Money 1 Year fixed paying 5.71%, maturing 24th August 2024.
I just want reassurance that my calculations are correct before proceeding
Approx £14.5k currently in the ISA; 90 day penalty is approx £155, bringing down to £14,345
If I do nothing, over the course of the next year my current ISA will earn me £14.5k x 4.36% = £632
Transferring it to the 1 year fix £14,345 x 5.71% = £819
Doing nothing at the end of the year £14,500 + 632 = £15,132
Transferring £14,345 + £819 = £15,164

So I'd make a grand total of about 30 quid extra by doing this.  But the bonus is I'd also have access to the money a couple of months earlier (which may assist, as I've got 0% credit cards maturing a few weeks before 24th October 2024), and it also depends upon what the interest rates are like in a year's time.

Are my calculations correct?  Would others do this for an extra £30?  Should I wait in case I can get a higher fix in a month? 

silvercar

There is a calculator here: https://www.moneysavingexpert.com/savings/isa-switch-calc/

I don't think you have allowed for the interest you will get between now and 24 October on the current ISA.

Doctor_Who

Should I wait in case I can get a higher fix in a month? 

Or rates may be lower in a month. Using the MSE ISA calculator above indicates you should be slightly better off by switching to the 5.71% ISA and paying the penalty fee.

surreysaver

Doctor_Who said:

Should I wait in case I can get a higher fix in a month? 

Or rates may be lower in a month. Using the MSE ISA calculator above indicates you should be slightly better off by switching to the 5.71% ISA and paying the penalty fee.

That's what I reckon 

surreysaver

silvercar said:

There is a calculator here: https://www.moneysavingexpert.com/savings/isa-switch-calc/

I don't think you have allowed for the interest you will get between now and 24 October on the current ISA.

I think I have. What I haven't allowed for is the interest between 24th August and 24th October next year, but as I will have access to the money penalty free at that time, that doesn't matter 
The trouble with that online calculator it doesn't take into account different maturity dates

VNX

Is it a 90 day penalty? I have a two year Virgin ISA and have been told by Virgin I have a 60 day interest penalty 

surreysaver

VNX said:

Is it a 90 day penalty? I have a two year Virgin ISA and have been told by Virgin I have a 60 day interest penalty 

I always download the T&Cs when opening a new account

I think their 1 year fixes are 60 days; 2 year are 90 days

VNX

surreysaver said:

VNX said:

Is it a 90 day penalty? I have a two year Virgin ISA and have been told by Virgin I have a 60 day interest penalty 

I always download the T&Cs when opening a new account

I think their 1 year fixes are 60 days; 2 year are 90 days

Interesting I was expecting 90days hence why I sent a message asking, I might just re confirm with them!

surreysaver

VNX said:

surreysaver said:

VNX said:

Is it a 90 day penalty? I have a two year Virgin ISA and have been told by Virgin I have a 60 day interest penalty 

I always download the T&Cs when opening a new account

I think their 1 year fixes are 60 days; 2 year are 90 days

Interesting I was expecting 90days hence why I sent a message asking, I might just re confirm with them!

Unless there's an easement owing to the 2 years paying less than the 1 years.
Having looked at their website, I notice there's now nothing longer than a 1 year fix, and the 1 year has gone up to 5.76%!

VNX

surreysaver said:

VNX said:

surreysaver said:

VNX said:

Is it a 90 day penalty? I have a two year Virgin ISA and have been told by Virgin I have a 60 day interest penalty 

I always download the T&Cs when opening a new account

I think their 1 year fixes are 60 days; 2 year are 90 days

Interesting I was expecting 90days hence why I sent a message asking, I might just re confirm with them!

Unless there's an easement owing to the 2 years paying less than the 1 years.
Having looked at their website, I notice there's now nothing longer than a 1 year fix, and the 1 year has gone up to 5.76%!

My Virgin two year is 4.11% so even if it’s 90days it’s with me paying the penalty 

surreysaver

Doctor_Who said:

Should I wait in case I can get a higher fix in a month? 

Or rates may be lower in a month. Using the MSE ISA calculator above indicates you should be slightly better off by switching to the 5.71% ISA and paying the penalty fee.

I wonder if I could do a partial transfer, maybe a third or a half in case rates go up? Spread the risk!