Loss of interest during isa transfer?

aaj123

Can transfer of ISAs between providers lead to a period where no interest accrues from either provider? Any HMRC rules in place to ensure this never is the case?

frugalmacdugal

Hi,

my last ISA transfer was done in 2 days, so not a lot of interest lost as I was switching to a higher interest rate.

bristolleedsfan

frugalmacdugal said:

Hi,

my last ISA transfer was done in 2 days, so not a lot of interest lost as I was switching to a higher interest rate.

There should not be any loss of interest for ISA transfers

aaj123

bristolleedsfan said:

frugalmacdugal said:

Hi,

my last ISA transfer was done in 2 days, so not a lot of interest lost as I was switching to a higher interest rate.

There should not be any loss of interest for ISA transfers

Is this by law?

eskbanker

aaj123 said:

bristolleedsfan said:

frugalmacdugal said:

Hi,

my last ISA transfer was done in 2 days, so not a lot of interest lost as I was switching to a higher interest rate.

There should not be any loss of interest for ISA transfers

Is this by law?

No, by HMRC best practice guidance:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/693198/Appendices.pdf

guidance produced by the industry on best practice for cash ISA to cash ISA transfers. While we recommend that managers adopt these procedures, they are recommendations only and are not prescriptive.

https://www.gov.uk/guidance/transfer-an-isa-if-youre-an-isa-manager#cash-isa-transfers

bristolleedsfan

aaj123 said:

bristolleedsfan said:

frugalmacdugal said:

Hi,

my last ISA transfer was done in 2 days, so not a lot of interest lost as I was switching to a higher interest rate.

There should not be any loss of interest for ISA transfers

Is this by law?

Banks/Building Societies have effectively signed up agreeing to best practice guidelines. Faster payments made are also covered by FSA rules that interest must start to be paid on same business day payments/deposits received on.

https://www.tisa.uk.com/publications/762_BBA01-470823-v1-Revised_Cash_ISA_Transfers_Industry_Guidelines_-_1_Janu....pdf