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Transferring a fixed isa before maturing.

[Deleted User]
[Deleted User] Posts: 0 Newbie
100 Posts Name Dropper Photogenic
edited 6 June 2024 at 8:20PM in ISAs & tax-free savings
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.

Comments

  • Mark_d
    Mark_d Posts: 1,942 Forumite
    1,000 Posts First Anniversary Name Dropper
    I don't see why you couldn't do the transfer.
  • gravel_2
    gravel_2 Posts: 594 Forumite
    Seventh Anniversary 500 Posts Name Dropper Combo Breaker
    If fixed they will likely have penalties for early withdrawals. Check your product's terms.
  • jimjames
    jimjames Posts: 18,278 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 7 June 2024 at 12:43PM
    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.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • 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
    refluxer Posts: 3,039 Forumite
    1,000 Posts Fourth Anniversary Photogenic Name Dropper
    edited 31 October 2024 at 12:46PM
    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
    Reed_Richards Posts: 5,082 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    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.     
    Reed
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    100 Posts Name Dropper Photogenic
    edited 31 October 2024 at 12:46PM
    refluxer 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.





  • 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
    sheslookinhot Posts: 2,184 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 31 October 2024 at 12:46PM
    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.
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