Moving to a better rate ISA

LightFlare

Hoping for some guidance as we are getting some mixed responses from various sources.

My wife currently has a cash isa with Lloyds bank that has >40k in it 

Lloyds are offering a different/better rate ISA that we are looking to transfer into.

If we transfer now - will we lose the whole years interest from the current one or will it be calculated and added at the date of transfer ?

Are we better waiting untill after this years interest has been added (31 March I believe) and then transfer before 5th April or should we wait u till the new financial year and then transfer (but before anything is paid into it) ?

We wanted to do this last year but got into a right mess and Lloyds were honestly quite useless.

Thanks

Dazed_and_C0nfused

LightFlare said:

Hoping for some guidance as we are getting some mixed responses from various sources.

My wife currently has a cash isa with Lloyds bank that has >40k in it 

Lloyds are offering a different/better rate ISA that we are looking to transfer into.

If we transfer now - will we lose the whole years interest from the current one or will it be calculated and added at the date of transfer ?

Are we better waiting untill after this years interest has been added (31 March I believe) and then transfer before 5th April or should we wait u till the new financial year and then transfer (but before anything is paid into it) ?

We wanted to do this last year but got into a right mess and Lloyds were honestly quite useless.

Thanks

That would be unusual, particularly with an ISA I think.

What do the terms of your existing ISA say 🤔.

LightFlare

Thanks for the speedy response.

I will look up and review the T&C of the current one.
We are actually heading into the bank on Monday, so can ask them. But wanted some other opinions/sources after last years fiasco

Thanks again

refluxer

If it's an easy access cash ISA, you would normally get interest added to the balance up until the point of transfer and that whole amount should be transferred into the new ISA.

The same should happen if it's a fixed rate ISA, however you'll have to pay a penalty to transfer out before maturity. In this scenario, you need to carefully calculate whether you'll actually benefit from doing this because the penalties (particularly for longer fixes) can be severe.

This is how every cash ISA I've had has operated but, as always, you should read the T&C's of the one you have carefully first.

Which ISA are you looking to transfer to and what is the rate ? Lloyds don't currently have any competitive cash ISA accounts as far as I can see, so it's likely that you'll do substantially better by transferring away to an alternative provider.

Albermarle

My wife currently has a cash isa with Lloyds bank that has >40k in it 
Lloyds are offering a different/better rate ISA that we are looking to transfer into.

There are different types of cash ISA - Easy Access, notice, fixed term etc so you need to be more specific on what kind of cash ISA accounts you are talking about.

35har1old

LightFlare said:

Thanks for the speedy response.

I will look up and review the T&C of the current one.
We are actually heading into the bank on Monday, so can ask them. But wanted some other opinions/sources after last years fiasco

Thanks again

Lloyds fixed rate ISA rates pay less than some easy access ISA by other providers (Principality)

GrubbyGirl_2

If it's an easy access ISA then interest will be added on transfer.  If it's a fixed rate then you'll have to check T&Cs.  I've been with Lloyds for 46 years but would never use them for any savings as their rates are pants.  There are much better deals out there.  Their 1 year fixed is 4.15% compared to Virgin at 5.25.  Lloyds best easy access (only 3 withdrawals allowed) is 4% dropping to 1.3% compared to 5.09% at moneybox

LightFlare

Thanks for the responses all.

Lots of good for thought. At least I asked before the new financial year kicked off 

Rusty190

@LightFlare : There is a calculator on this website that does this calculation for you to help with your decision.
Apologies, I'm unable to do link.