Maturity dates and advance partial transfers

Do people have experience of preparing in advance to split a fixed term ISA (which doesn't allow partial transfers) when it matures to a poor paying instant access account (which does allow them)? How efficiently do providers handle the option on the transfer form to wait to avoid penalties?

Where providers advise a maturity date, is it generally nearer the start of end of the day that the money becomes accessible? Would you put this or the following (working) day on the transfer form?

Comments

  • masonic
    masonic Posts: 22,864
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    edited 10 November 2023 at 10:07PM
    It would be very dependent on providers, but there have been instances where submitting the transfer form too far in advance of maturity has led to the transfer being rejected. Submitting it a 5 full working days in advance of maturity (or longer if posting a paper form) and specifying the 'wait until maturity' option would be the sweet spot. You do not need to specify a date. This would allow the new provider to process the transfer without pending it and keep within the prescribed transfer timelines.
  • masonic said:
    You do not need to specify a date.
    Some electronic forms do seem to require date if selecting the 'wait until maturity' option.



  • masonic
    masonic Posts: 22,864
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    edited 11 November 2023 at 1:59PM
    masonic said:
    You do not need to specify a date.
    Some electronic forms do seem to require date if selecting the 'wait until maturity' option.
    The ISA regulations and model ISA transfer form (that providers should be following) do not require the customer to specify a date.
    If you have a specific non-conforming example, in order to comment any further I'd need a screenshot of the relevant section of the web form and any explanatory notes. Note that the transfer date is negotiated between the two ISA managers and may differ from any date specified by the customer. If the customer specifies a date as part of the transfer authority that cannot be honoured, then that could be problematic.
  • From OakNorth (no further explanatory notes):

    Transfer Authority Declaration

    Please select ONE of the two options below in order to proceed with the transfer:
     I would like to carry out the ISA transfer as soon as possible and, depending on my existing account's terms and conditions, I will accept any consequential loss of interest or charges that may be applied.
     I would like to wait the full notice period until the end or until the maturity date (whichever is relevant) before carrying out the ISA transfer. Please enter the date when your funds will be available to be transferred.
  • masonic
    masonic Posts: 22,864
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    edited 11 November 2023 at 6:35PM
    From OakNorth (no further explanatory notes):

    Transfer Authority Declaration

    Please select ONE of the two options below in order to proceed with the transfer:
     I would like to carry out the ISA transfer as soon as possible and, depending on my existing account's terms and conditions, I will accept any consequential loss of interest or charges that may be applied.
     I would like to wait the full notice period until the end or until the maturity date (whichever is relevant) before carrying out the ISA transfer. Please enter the date when your funds will be available to be transferred.
    You'll need to contact your existing ISA provider to confirm that date, as it won't be the same for all providers, but it is a pointless step because part of the ISA transfer process involves the existing ISA provider telling the new provider when the funds will be available to be transferred (the later of the dates the two providers are ready to execute the transfer becomes the transfer date and determines who is deemed to manage the ISA throughout the process, whether or not funds are actually received on that date). If they had used the word "approximate", then you could have provided the maturity date.
    OakNorth is not looking competitive for ISAs at the moment, so you could side-step the whole issue and go with a higher paying alternative provider.
    Personally, if I were in this position, I'd probably just wait for maturity and then as soon as possible after the maturity date, when the account number of the easy access maturity account was confirmed, submit one or more immediate transfer requests. The cost of a few days interest seems worth it to avoid the messing around with notice periods, or risking an even longer delay if I guess a date and it's wrong.
  • Albermarle
    Albermarle Posts: 21,148
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    Personally, if I were in this position, I'd probably just wait for maturity and then as soon as possible after the maturity date, when the account number of the easy access maturity account was confirmed, submit one or more immediate transfer requests. The cost of a few days interest seems worth it to avoid the messing around with notice periods, or risking an even longer delay if I guess a date and it's wrong.

    However some fixed term accounts do not go to a easy access maturity account, when the term is up. They rollover into another fixed term, unless the provider receives specific instructions to do otherwise.


  • masonic
    masonic Posts: 22,864
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    Personally, if I were in this position, I'd probably just wait for maturity and then as soon as possible after the maturity date, when the account number of the easy access maturity account was confirmed, submit one or more immediate transfer requests. The cost of a few days interest seems worth it to avoid the messing around with notice periods, or risking an even longer delay if I guess a date and it's wrong.

    However some fixed term accounts do not go to a easy access maturity account, when the term is up. They rollover into another fixed term, unless the provider receives specific instructions to do otherwise.

    True, but the OP is fortunate in not being in that situation. Where a maturity account is not easy access, then the statutory 14-day cooling off period gives a more relaxed target to aim for.
  • OakNorth is not looking competitive for ISAs at the moment, so you could side-step the whole issue and go with a higher paying alternative provider.
    ON Fixed allows instant partial withdrawls with proportionate penalty rather than total loss. Are there comparable terms at higher paying providers?

    Also, any thoughts on removing the second portion out of low paying EA product, technically a full transfer. If existing provider receives a partial then a full transfer request from two different institutions, should they do the partial before the closure one? Maturity funds are of course all previous year contributions.
  • masonic
    masonic Posts: 22,864
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    edited 14 November 2023 at 10:33PM
    OakNorth is not looking competitive for ISAs at the moment, so you could side-step the whole issue and go with a higher paying alternative provider.
    ON Fixed allows instant partial withdrawls with proportionate penalty rather than total loss. Are there comparable terms at higher paying providers?
    I don't know. It seems a very niche thing to want to do - add to a fix, then partially remove money part way through. Could you not wait until the end of the fixed term, or keep the tranches of money separate? Its possible this could leave you better off overall.
    Also, any thoughts on removing the second portion out of low paying EA product, technically a full transfer. If existing provider receives a partial then a full transfer request from two different institutions, should they do the partial before the closure one? Maturity funds are of course all previous year contributions.
    They should not be relied upon to act on concurrent transfer instructions in any particular order. You can control this by waiting until the partial is debited before submitting the full one.
  • Compound_2
    Compound_2 Posts: 298
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    edited 15 November 2023 at 12:54AM
    It seems a very niche thing to want to do - add to a fix, then partially remove money part way through. Could you not wait until the end of the fixed term, or keep the tranches of money separate? Its possible this could leave you better off overall.
    Intention is to wait till end of term, but withdraw from ISA only the amount required in the event of unexpected need. There are separate tranches of money, hence the ISA split with partial transfers.
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