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Transferring a fixed isa before maturing.
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[Deleted User]
Posts: 0 Newbie

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.
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.
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Comments
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I don't see why you couldn't do the transfer.
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If fixed they will likely have penalties for early withdrawals. Check your product's terms.2
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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.2
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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.
Well, that's my understanding anyway.0 -
[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.
Well, that's my understanding anyway.
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.
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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.Reed1 -
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.
Well, that's my understanding anyway.
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.
I'll let it run its term then.
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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.
Leave alone until end of term then.0 -
[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.
Leave alone until end of term then.Mortgage free
Vocational freedom has arrived1
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