Transferring a fixed isa before maturing.

[Deleted User]

Hello.
I've got a natwest fixed isa which l open at the end of April this year can l transfer it to a RBS isa which l also opened at the same time. Both have 2k in them.
They are basically  the same product under their respective  brand.

Mark_d

I don't see why you couldn't do the transfer.

gravel_2

If fixed they will likely have penalties for early withdrawals. Check your product's terms.

jimjames

What would the reason and benefit be for moving it? You can always move ISAs as it's one of the conditions of the accounts but whether it makes sense with the penalties is down to you to decide. It might be worth sticking to easy access accounts to avoid needing to close fixed ones after a month.

[Deleted User]

jimjames said:

What would the reason and benefit be for moving it? You can always move ISAs as it's one of the conditions of the accounts but whether it makes sense with the penalties is down to you to decide. It might be worth sticking to easy access accounts to avoid needing to close fixed ones after a month.

I'm thinking of using  the account for a spare in case l want to switch at a later date. If l leave  the ISA be l would only be able to access it in branch and the nearest one is over 20 miles away.
Well, that's my understanding  anyway.

refluxer

[Deleted User] said:

jimjames said:

What would the reason and benefit be for moving it? You can always move ISAs as it's one of the conditions of the accounts but whether it makes sense with the penalties is down to you to decide. It might be worth sticking to easy access accounts to avoid needing to close fixed ones after a month.

I'm thinking of using  the account for a spare in case l want to switch at a later date. If l leave  the ISA be l would only be able to access it in branch and the nearest one is over 20 miles away.
Well, that's my understanding  anyway.

Apart from a small number of exceptions, fixed rate ISAs usually have a limited funding window (1 month is typical) so if you're outside of this, you won't be able to transfer into (or pay new subscriptions into) either of them.

Even if you were able to do the transfer you mention, the penalty alone would be a good enough reason not to do this (a typical 3 month interest penalty for a 1 year ISA could see you getting less back than you paid in) and the sending ISA account would also be automatically closed, so you wouldn't be able to retain it for future use, not that you'd be able to pay into it anyway. Fixed rate accounts of this type just aren't meant to be used in this way.

Reed_Richards

It's too late and too expensive. 

Too late because the vast majority of fixed rate ISAs won't let you add any more money after 30 days.  AFAIK that includes RBS.  And you won't be able to put any more money into the Natwest ISA either.

Too expensive because you would have to pay a penalty to transfer out of your fixed rate Natwest ISA.     

[Deleted User]

refluxer said:

[Deleted User] said:

jimjames said:

What would the reason and benefit be for moving it? You can always move ISAs as it's one of the conditions of the accounts but whether it makes sense with the penalties is down to you to decide. It might be worth sticking to easy access accounts to avoid needing to close fixed ones after a month.

I'm thinking of using  the account for a spare in case l want to switch at a later date. If l leave  the ISA be l would only be able to access it in branch and the nearest one is over 20 miles away.
Well, that's my understanding  anyway.

Apart from a small number of exceptions, fixed rate ISAs usually have a limited funding window (1 month is typical) so if you're outside of this, you won't be able to transfer into (or pay new subscriptions into) either of them.

Even if you were able to do the transfer you mention, the penalty alone would be a good enough reason not to do this (a typical 3 month interest penalty for a 1 year ISA could see you getting less back than you paid in) and the sending ISA account would also be automatically closed, so you wouldn't be able to retain it for future use, not that you'd be able to pay into it anyway. Fixed rate accounts of this type just aren't meant to be used in this way.

Thank you for the information. 
I'll let it run its term then.

[Deleted User]

Reed_Richards said:

It's too late and too expensive. 

Too late because the vast majority of fixed rate ISAs won't let you add any more money after 30 days.  AFAIK that includes RBS.  And you won't be able to put any more money into the Natwest ISA either.

Too expensive because you would have to pay a penalty to transfer out of your fixed rate Natwest ISA.     

Thank you for information. 
Leave alone until end of term then.

sheslookinhot

[Deleted User] said:

Reed_Richards said:

It's too late and too expensive. 

Too late because the vast majority of fixed rate ISAs won't let you add any more money after 30 days.  AFAIK that includes RBS.  And you won't be able to put any more money into the Natwest ISA either.

Too expensive because you would have to pay a penalty to transfer out of your fixed rate Natwest ISA.     

Thank you for information. 
Leave alone until end of term then.

For future, it would be worthwhile reading the comments given to others on this  forum or the ISA information many providers lay out clearly on the product information page.