Logistics on changing fixed ISA to new provider

poppystar

Apologies if this is a very basic question but I’ve not had a fixed ISA before and now have two maturing in the next month. Ideally I will probably want to change provider. How does this work in practice? I know with normal cash ISAs the new provider handles the transfer, effectively pulling in the funds, rather than the old provider sending them. 

So do I open a new ISA in advance and then they have to ask for the transfer on a day I give them - the maturity day, presumably. Or do I have to mature it into an access ISA with the old provider and then set up a new ISA elsewhere and get them to do the transfer? 

If the former how much in advance should this be done? 

What I don’t want is the money to default into a new fixed ISA with the old provider because I’ve not taken the correct actions in advance. Thanks.

eskbanker

When you complete the transfer instruction with the receiving provider, you can usually specify that it's a fixed term product that you're transferring from, and request that the transfer is scheduled for maturity.

You need to check the product terms for the existing ones to determine what options are available at maturity (these should also be notified to you ahead of the date), as some will roll over into new fixes by default while others revert to easy access.

badger09

To add to what eskbanker said, if you want to xfer either or both of your existing FRISAs into a new FRISA, you need to check the T&Cs of the new one very carefully. Some allow new funding or xfer in, for a short time only eg 30 days, which might be too late for your maturing ISA. 

However, some have more generous funding windows & some allow funding throughout the period of the fix. 

poppystar

eskbanker said:

When you complete the transfer instruction with the receiving provider, you can usually specify that it's a fixed term product that you're transferring from, and request that the transfer is scheduled for maturity.

You need to check the product terms for the existing ones to determine what options are available at maturity (these should also be notified to you ahead of the date), as some will roll over into new fixes by default while others revert to easy access.

So is it likely that transferring to another ISA elsewhere will be a maturity option offered that I can select when notified by the existing provider? 

slinger2

poppystar said:

eskbanker said:

When you complete the transfer instruction with the receiving provider, you can usually specify that it's a fixed term product that you're transferring from, and request that the transfer is scheduled for maturity.

You need to check the product terms for the existing ones to determine what options are available at maturity (these should also be notified to you ahead of the date), as some will roll over into new fixes by default while others revert to easy access.

So is it likely that transferring to another ISA elsewhere will be a maturity option offered that I can select when notified by the existing provider? 

Unlikely from my experience. The existing provider doesn't just send the money out. It's the other way round. You find a new provider, open an account with them, request a transfer, and they initiate the transfer from the existing provider. Can be quite quick (a few days) but can be quite slow if one of the providers is still using the post (up to 3 weeks)