Help with transfer of fixed ISA. When to start the transfer instruction please?

eldaniel

Hi, my 1 year fixed ISA matures on 24th Sep this year. I am about to fill in transfer request to another provider, but in transfer request form, there is no date for transfer to choose from. If I fill it in now, will my current ISA stay open until maturity regardless and will only be moved after it matures even if instruction is filled now please? Would not like to make something stupid and move my ISA before 1 year expire. Many thanks

eskbanker

Many such forms have an option to defer the transfer until maturity, but if the one you're looking at doesn't then you'd probably need to wait until then (or go elsewhere).

eldaniel

I am about to click the button at the new provider "sign documents" which I believe could confirm and finilise the transfer. Not sure if they will be any further questions after I click this button. Scared to do that in case I do something wrong and incur some penalty from existing provider.

eskbanker

Perhaps worth mentioning which provider you're looking at transferring to, as other posters will probably have gone through their process and be able to offer suggestions or comments?

eldaniel

eskbanker said:

Perhaps worth mentioning which provider you're looking at transferring to, as other posters will probably have gone through their process and be able to offer suggestions or comments?

Transferring to Trading 212. Just asked them on the chat and they advised me to wait until my existing ISA matures. Is that not really inefficient way of doing it? If I wait until maturity then my current ISA provider will transfer my ISA to Cash ISA Matured Funds account paying 0.10%. If I will fill in ISA transfer request exactly on the day of maturity, then Trading 212 can take up to 30 days (according to them) for ISA transfer to happen. Then potentially I would have my saving sitting at 0.1% for a month. Is that really the only choice when deciding to transfer fixed cash ISA please? 

eskbanker

Another option would be to transfer via a third ISA provider, who offers a 'transfer on maturity' option and an easy access cash ISA paying a decent rate.  Once done, you can then initiate the transfer to T212 - a bit of a faff, but a possibility to avoid loss of interest....

As with all ISA providers, T212 are required to transfer between cash ISAs within 15 working days (the 30 days is for other ISA types and they've traditionally been a S&S ISA outfit).

35har1old

eldaniel said:

eskbanker said:

Perhaps worth mentioning which provider you're looking at transferring to, as other posters will probably have gone through their process and be able to offer suggestions or comments?

Transferring to Trading 212. Just asked them on the chat and they advised me to wait until my existing ISA matures. Is that not really inefficient way of doing it? If I wait until maturity then my current ISA provider will transfer my ISA to Cash ISA Matured Funds account paying 0.10%. If I will fill in ISA transfer request exactly on the day of maturity, then Trading 212 can take up to 30 days (according to them) for ISA transfer to happen. Then potentially I would have my saving sitting at 0.1% for a month. Is that really the only choice when deciding to transfer fixed cash ISA please? 

eskbanker said:

Another option would be to transfer via a third ISA provider, who offers a 'transfer on maturity' option and an easy access cash ISA paying a decent rate.  Once done, you can then initiate the transfer to T212 - a bit of a faff, but a possibility to avoid loss of interest....

As with all ISA providers, T212 are required to transfer between cash ISAs within 15 working days (the 30 days is for other ISA types and they've traditionally been a S&S ISA outfit).

The clock doesn't start ticking until the day of maturity
You have instructed them not to ask for the transfer prior to maturity to avoid penalties.
The above suggestion could mean 2x 15 working days periods.
The only way of reducing these is to fix for longer

eskbanker

35har1old said:

eldaniel said:

eskbanker said:

Perhaps worth mentioning which provider you're looking at transferring to, as other posters will probably have gone through their process and be able to offer suggestions or comments?

Transferring to Trading 212. Just asked them on the chat and they advised me to wait until my existing ISA matures. Is that not really inefficient way of doing it? If I wait until maturity then my current ISA provider will transfer my ISA to Cash ISA Matured Funds account paying 0.10%. If I will fill in ISA transfer request exactly on the day of maturity, then Trading 212 can take up to 30 days (according to them) for ISA transfer to happen. Then potentially I would have my saving sitting at 0.1% for a month. Is that really the only choice when deciding to transfer fixed cash ISA please? 

eskbanker said:

Another option would be to transfer via a third ISA provider, who offers a 'transfer on maturity' option and an easy access cash ISA paying a decent rate.  Once done, you can then initiate the transfer to T212 - a bit of a faff, but a possibility to avoid loss of interest....

As with all ISA providers, T212 are required to transfer between cash ISAs within 15 working days (the 30 days is for other ISA types and they've traditionally been a S&S ISA outfit).

The clock doesn't start ticking until the day of maturity
You have instructed them not to ask for the transfer prior to maturity to avoid penalties.
The above suggestion could mean 2x 15 working days periods.
The only way of reducing these is to fix for longer

Did you feel that any of that was clear or helpful?

eldaniel

Am I right in thinking that safest decision will be to transfer to an easy access ISA with my current provider where interest rate is not the leading one but it above 4%, and then once this is done fill in a transfer to Trading 212. Would that be more interests efficient approach please? 

eskbanker

eldaniel said:

Am I right in thinking that safest decision will be to transfer to an easy access ISA with my current provider where interest rate is not the leading one but it above 4%, and then once this is done fill in a transfer to Trading 212. Would that be more interests efficient approach please? 

Yes, that would work too and less hassle to use an interim product than an interim provider!

Jazzking

For what it's worth, I've found Trading 212 transfers very efficient, as in, the same day - this was coming from a Natwest Fixed ISA, by the way.
I, like you was trying to max the interest and submitted the transfer request a couple of days in advance of the maturity date.  Natwest text me the next day saying I was going to incur fees and gave me the option to wait.  I then submitted a new transfer request from T212 on Friday morning fixed isa turned into a cash ISA after my and the funds were in my T212 account later that day.