ISA transfer delay

daven4251

I recently transferred my ISA to a different provider. I contacted my gaining provider 10 days after maturity to enquire about progress. They told me nothing had been done by my ex-provider. The transfer went through a few days later. Apparently  my losing provider has 15 days to complete the transfer. So why could this be I ask. My monies stayed with them for 2 weeks and gaining no interest at all when they had full access to my funds and could carry on using them. Why do absolutely nothing for at least 10 days? 

eskbanker

daven4251 said:

I recently transferred my ISA to a different provider. I contacted my gaining provider 10 days after maturity to enquire about progress. They told me nothing had been done by my ex-provider. The transfer went through a few days later. Apparently  my losing provider has 15 days to complete the transfer. So why could this be I ask. My monies stayed with them for 2 weeks and gaining no interest at all when they had full access to my funds and could carry on using them. Why do absolutely nothing for at least 10 days? 

The transfer should take no more than 15 working days in total, broken down as follows:

Cash ISA to cash ISA transfers must take place within 15 business days of the transfer instruction being received by the new ISA manager, unless the investor stipulates that the 15 days starts on a later date. The 15 days are broken down as follows:

The new ISA manager has 5 business days to forward the instruction to the old ISA manager.

The old ISA manager has 5 business days in which to send the funds and information to be provided to the new ISA manager.

The new ISA manager has 3 business days to apply the funds to the new ISA.

The other 2 days are to allow for time taken for first class post between managers.

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

masonic

Are you saying the maturity account had an interest rate of 0%? That is unusual. How far before maturity did you submit the transfer request. Typically this can be done at least 5 working days prior to maturity to narrow the window the sending provider has to play silly beggars.

daven4251

masonic said:

Are you saying the maturity account had an interest rate of 0%? That is unusual. How far before maturity did you submit the transfer request. Typically this can be done at least 5 working days prior to maturity to narrow the window the sending provider has to play silly beggars.

I think I submitted about a week before. It just seems to me that in this highly technical sophisticated age this seems to be an unnecessarily long process. Someone else has kindly provided a breakdown on procedures and mentioned first class post being used! Do these large organizations not own computers then? What bugs me is that they get 2 weeks of free usage of my funds.

masonic

daven4251 said:

masonic said:

Are you saying the maturity account had an interest rate of 0%? That is unusual. How far before maturity did you submit the transfer request. Typically this can be done at least 5 working days prior to maturity to narrow the window the sending provider has to play silly beggars.

I think I submitted about a week before. It just seems to me that in this highly technical sophisticated age this seems to be an unnecessarily long process. Someone else has kindly provided a breakdown on procedures and mentioned first class post being used! Do these large organizations not own computers then? What bugs me is that they get 2 weeks of free usage of my funds.

There is an electronic ISA transfer system which many banks have implemented, but both need to support it for a transfer to be made that way. You haven't named either provider, so we can't comment on whether it could have been used.

As mentioned, the maturity account normally pays interest, thereafter the money is not available for use by the ceding provider, just like money sitting in your current account reserved for a pending payment cannot be used by you.

Albermarle

daven4251 said:

masonic said:

Are you saying the maturity account had an interest rate of 0%? That is unusual. How far before maturity did you submit the transfer request. Typically this can be done at least 5 working days prior to maturity to narrow the window the sending provider has to play silly beggars.

I think I submitted about a week before. It just seems to me that in this highly technical sophisticated age this seems to be an unnecessarily long process. Someone else has kindly provided a breakdown on procedures and mentioned first class post being used! Do these large organizations not own computers then? What bugs me is that they get 2 weeks of free usage of my funds.

A few years ago you would have been very pleased to see an ISA transfer  happen in a month, many took longer.
It is more complicated for the savings provider to transfer an ISA, than just a normal bank transfer as it has to comply with HMRC rules.