Transferring 2 year fixed to one year fixed

35har1old

surreysaver said:

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!

Virgin does not currently have a 2 year ISA but the 1 year ISA has a 60 day penalty so the 2 year is likely to have a longer penalty.

surreysaver

35har1old said:

surreysaver said:

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!

Virgin does not currently have a 2 year ISA but the 1 year ISA has a 60 day penalty so the 2 year is likely to have a longer penalty.

I'm aware of that. What I'm suggesting is transfer say £5k now into a 1 year fix, then another £5k in a month's time to a different 1 year fix.

Doctor_Who

surreysaver said:

35har1old said:

surreysaver said:

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!

Virgin does not currently have a 2 year ISA but the 1 year ISA has a 60 day penalty so the 2 year is likely to have a longer penalty.

I'm aware of that. What I'm suggesting is transfer say £5k now into a 1 year fix, then another £5k in a month's time to a different 1 year fix.

If the T&Cs allow partial transfers-out, then yes. You would be creating a ladder of 1 year fixed ISAs maturing at monthly intervals. I have a 1 year non-ISA fixed rate ladder, which means you benefit from access to some of the fixed rate money each month, but with a higher interest rate.

surreysaver

Yes, the T&Cs say minimum withdrawal amount is £1 unless closing, so that implies that you can do partial transfers.
I've tried applying for the one year fix this morning, but Virgin's application process only allows you to do a closure online. I presume that means I have to ring up and speak to a human 🤷‍♂️

surreysaver

Well, they partially transferred my ISA two days ago as requested, but they haven't applied the 90 day penalty!  Unless they apply the penalty at a later date, looks like I may have got away with that!

Doctor_Who

surreysaver said:

Well, they partially transferred my ISA two days ago as requested, but they haven't applied the 90 day penalty!  Unless they apply the penalty at a later date, looks like I may have got away with that!

I did wonder how they would apply the penalty fee when you mentioned partial transfers-out. Maybe they only apply the fee when the account is closed. For withdrawals the T&Cs say the fee is based on the amount withdrawn, but I couldn't see any mention of how the fee is applied for partial transfers-out.

surreysaver

Maybe a transfer to another Virgin ISA doesn't count as a withdrawal [shrug] 
I'll have to try another transfer!

Doctor_Who

surreysaver said:

Maybe a transfer to another Virgin ISA doesn't count as a withdrawal [shrug] 
I'll have to try another transfer!

Let us know how it goes. I can't remember reading another thread/post regarding partial transfers-out from a fixed rate ISA and how the penalty fees were handled. I couldn't find anything in the T&Cs to say that VM to VM fixed rate ISA transfers aren't subject to the penalty fee, but maybe it's a 'perk' they don't advertise!

rallycurve

surreysaver said:

Well, they partially transferred my ISA two days ago as requested, but they haven't applied the 90 day penalty!  Unless they apply the penalty at a later date, looks like I may have got away with that!

They won't take the penalty off the amount you request but it will be taken from your interest once they pay it to you, at the end of the term normally. So don't expect to receive the full interest then

surreysaver

rallycurve said:

surreysaver said:

Well, they partially transferred my ISA two days ago as requested, but they haven't applied the 90 day penalty!  Unless they apply the penalty at a later date, looks like I may have got away with that!

They won't take the penalty off the amount you request but it will be taken from your interest once they pay it to you, at the end of the term normally. So don't expect to receive the full interest then

I get paid the interest monthly, so I'll see at the end of the month