Transferring A Fixed Term Cash Isa Before Maturity

Al_Ross

Would it make sense to transfer a fixed term isa pot that have just over 2 years left, that earns 2.5% annual interest into a new isa that earns over 5%.

I know there would be penalties,but it doesn't say how much these would be.

amanda1024

It should say how much the penalty is in one of the documents you were sent when setting up the ISA - but if you didn’t keep them, you might have to ask the current ISA provider. Generally they’re a certain number of days of interest, a longer period for longer fixed-terms - but it could still potentially be worth transferring to a better rate.

Albermarle

If the current provider is still offering fixed term accounts, you could check the T's & C's of those.

Typically transferring out of a 3 year fixed deal could cost around 270 days interest.

Al_Ross

Thanks,I have all post correspondence relating to this account,it was a fixed 7 year ISA with United Trust Bank.No mention of penalties before maturity date.

amanda1024

I think it’s in the Ts&Cs here: https://www.utbank.co.uk/deposits/terms-and-conditions/ so potentially 270 days or 180 days interest, depending on whether you’ve got more or less than 2 years left?

eskbanker

Al_Ross said:

Would it make sense to transfer a fixed term isa pot that have just over 2 years left, that earns 2.5% annual interest into a new isa that earns over 5%.

I know there would be penalties,but it doesn't say how much these would be.

You can plug your figures into this calculator to ascertain if the penalties are worth it:

https://www.moneysavingexpert.com/savings/isa-switch-calc/

Al_Ross

Hey guys, thanks for your great info. I did have the terms but was looking in the wrong place.

So i would be best waiting 2 months so that it is only 180days.

I was looking at the Virgin deal, obviously don't know if it will still be available then at the same interest rate, or something as good in two months’ time.