Santander ISA -> Nutmeg - 120 Days' Interest Charge

PSilver

Hi, I have a Santander Cash ISA for which interest has now been paid at around 5% for the past year. The rate is now 1.2% so I'd like to transfer them to another provider. It's difficult to find the information on Santander's website but it looks like they want to take 120 days' interest as a charge for doing so. Does this sound right?

eskbanker

PSilver said:

Hi, I have a Santander Cash ISA for which interest has now been paid at around 5% for the past year. The rate is now 1.2% so I'd like to transfer them to another provider. It's difficult to find the information on Santander's website but it looks like they want to take 120 days' interest as a charge for doing so. Does this sound right?

No, it doesn't sound right if the product has matured at the end of its fixed term - your maturity letter should have explained the options, but, unless they've rolled it over into a new fixed term, it's presumably now in an easy access account, from which you can transfer at any time without penalty.

gravel_2

PSilver said:

Hi, I have a Santander Cash ISA for which interest has now been paid at around 5% for the past year. The rate is now 1.2% so I'd like to transfer them to another provider. It's difficult to find the information on Santander's website but it looks like they want to take 120 days' interest as a charge for doing so. Does this sound right?

I have also just had my 1 year Santander ISA mature. I was also moved to the 1.2% ISA. If you check the "statements and documents" section of your account you will see a document called "Savings & Cash ISA Maturity letters". In here it details that at maturity you will be moved to and instant access ISA Saver.

Terms for ISA Saver are at the bottom of this page: https://www.santander.co.uk/personal/savings-and-investments/savings-terms-and-conditions

"Can I withdraw money?

Yes, you can take money out of your account at any time using Online or Mobile Banking, at the Post Office or by talking to us in branch or over the phone. You can also take money out at cash machines if you have a cash card or have linked your account to another Santander card you already have. This ISA is not flexible. That means if you take money out, it will lose its tax-free status.

If it’s repaid into an ISA, it’ll count towards your ISA allowance for the current tax year.

You can also transfer your cash ISA to another provider by contacting the new ISA provider."

PSilver

eskbanker said:

PSilver said:

Hi, I have a Santander Cash ISA for which interest has now been paid at around 5% for the past year. The rate is now 1.2% so I'd like to transfer them to another provider. It's difficult to find the information on Santander's website but it looks like they want to take 120 days' interest as a charge for doing so. Does this sound right?

No, it doesn't sound right if the product has matured at the end of its fixed term - your maturity letter should have explained the options, but, unless they've rolled it over into a new fixed term, it's presumably now in an easy access account, from which you can transfer at any time without penalty.

Thanks - I think I was wrong about the 120 days' interest - it looks like that's the early access penalty.

PSilver

gravel_2 said:

PSilver said:

Hi, I have a Santander Cash ISA for which interest has now been paid at around 5% for the past year. The rate is now 1.2% so I'd like to transfer them to another provider. It's difficult to find the information on Santander's website but it looks like they want to take 120 days' interest as a charge for doing so. Does this sound right?

I have also just had my 1 year Santander ISA mature. I was also moved to the 1.2% ISA. If you check the "statements and documents" section of your account you will see a document called "Savings & Cash ISA Maturity letters". In here it details that at maturity you will be moved to and instant access ISA Saver.

Terms for ISA Saver are at the bottom of this page: https://www.santander.co.uk/personal/savings-and-investments/savings-terms-and-conditions

"Can I withdraw money?

Yes, you can take money out of your account at any time using Online or Mobile Banking, at the Post Office or by talking to us in branch or over the phone. You can also take money out at cash machines if you have a cash card or have linked your account to another Santander card you already have. This ISA is not flexible. That means if you take money out, it will lose its tax-free status.

If it’s repaid into an ISA, it’ll count towards your ISA allowance for the current tax year.

You can also transfer your cash ISA to another provider by contacting the new ISA provider."

Thanks - that's definitely what's happened now I've looked more carefully. I'll contact my other provider (stocks and shares) to initiate the transfer and hopefully retain the tax-free status.

rallycurve

Also you were not earning around 5% on that ISA as you said. They never offered that much. It was 4.15% 

PSilver

rallycurve said:

Also you were not earning around 5% on that ISA as you said. They never offered that much. It was 4.15% 

You're probably right - I can't see the previous rate on the app, only my new rate of 1.2%.

gravel_2

PSilver said:

rallycurve said:

Also you were not earning around 5% on that ISA as you said. They never offered that much. It was 4.15% 

You're probably right - I can't see the previous rate on the app, only my new rate of 1.2%.

The old rate is also in the letter I pointed you to but it's not too important.