Zopa ISA

My partner has a one-year fixed rate ISA with Zopa taken out in July, if she moved it to a new provider would she incur a penalty charge, if so, how much. Unfortunately my partner can’t find any info on this issue thanks.


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The windows are small and the walls almost bare,
There's only one bed and there's only one prayer;
I listen all night for your step on the stair.

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  • My partner has a one-year fixed rate ISA with Zopa taken out in July, if she moved it to a new provider would she incur a penalty charge, if so, how much. Unfortunately my partner can’t find any info on this issue thanks.


    The link below says that a penalty fee is payable, but not how much (depends on the term). There maybe more info in the Zopa app.

    https://www.zopa.com/help/article/can-i-transfer-my-smart-isa-to-another-provider
    'Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it' - Albert Einstein.
  • refluxer
    refluxer Posts: 2,538
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    edited 19 October 2023 at 12:31PM
    Presuming that the terms haven't changed since July, the penalty for withdrawing or transferring from a Zopa 1 year fixed term ISA pot before the maturity date is currently 90 days, as mentioned here : https://www.zopa.com/help/article/can-i-withdraw-from-my-smart-isa-pots

    Make sure you us MSE's 'ditch and switch' calculator to work out whether it's worth paying the penalty to switch to a higher rate : https://www.moneysavingexpert.com/savings/isa-switch-calc/

    If it was opened in July and only for 1 year then my guess would be that you'll probably lose out by switching, but I obviously don't know your exact figures and dates so make sure you put them into the calculator to check.
  • refluxer said:
    Presuming that the terms haven't changed since July, the penalty for withdrawing or transferring from a Zopa 1 year fixed term ISA pot before the maturity date is currently 90 days, as mentioned here : https://www.zopa.com/help/article/can-i-withdraw-from-my-smart-isa-pots

    Make sure you us MSE's 'ditch and switch' calculator to work out whether it's worth paying the penalty to switch to a higher rate : https://www.moneysavingexpert.com/savings/isa-switch-calc/

    If it was opened in July and only for 1 year then my guess would be that you'll probably lose out by switching, but I obviously don't know your exact figures and dates so make sure you put them into the calculator to check.
    Thanks that's a big help
    I choose the rooms that I live in with care,
    The windows are small and the walls almost bare,
    There's only one bed and there's only one prayer;
    I listen all night for your step on the stair.
  • refluxer
    refluxer Posts: 2,538
    First Anniversary First Post Photogenic Name Dropper
    Forumite
    Also - just be aware that if you did transfer the whole lot and it's been less than 90 days from the fixed rate ISA's start date, then that'll means you'll get back less than you originally put in (the whole penalty will be deducted even if that happens).
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