Confused about ISA maturity and transfer

ShezaEU

I have a 1-year fixed ISA with one provider which is maturing in a few weeks' time. I want to open a new ISA with a different provider and transfer the money in.

I understand the general principle to transfer this ISA to a new provider is to apply to open an ISA with the new provider, and fill out a form where they will transfer the money from my existing ISA into the new ISA. That makes sense.

However, the timing is my concern. I heard it takes '2 to 4 weeks' to complete an ISA transfer. What if it takes 4 weeks, and my ISA has already matured in the meantime? Or what if it takes 2 weeks, and my ISA hasn't matured yet? Do I instantly get hit by my current provider's 90-day interest penalty?

Is there a box you can tick on these things that says something like 'My current ISA is maturing soon, make sure you don't touch it until after it matures"?

kaMelo

ShezaEU said:

I have a 1-year fixed ISA with one provider which is maturing in a few weeks' time. I want to open a new ISA with a different provider and transfer the money in.

I understand the general principle to transfer this ISA to a new provider is to apply to open an ISA with the new provider, and fill out a form where they will transfer the money from my existing ISA into the new ISA. That makes sense.

However, the timing is my concern. I heard it takes '2 to 4 weeks' to complete an ISA transfer. What if it takes 4 weeks, and my ISA has already matured in the meantime? Or what if it takes 2 weeks, and my ISA hasn't matured yet? Do I instantly get hit by my current provider's 90-day interest penalty?

Is there a box you can tick on these things that says something like 'My current ISA is maturing soon, make sure you don't touch it until after it matures"?

Yes, the transfer form has an option to do exactly that.

eskbanker

ShezaEU said:

Is there a box you can tick on these things that says something like 'My current ISA is maturing soon, make sure you don't touch it until after it matures"?

Often, but not always.

What happens on maturity of your existing one?  Some will roll over into a new fixed term by default (although you can override this) but most will just be converted into a variable easy access one, from which you can transfer at any time with no penalty.

ShezaEU

eskbanker said:

ShezaEU said:

Is there a box you can tick on these things that says something like 'My current ISA is maturing soon, make sure you don't touch it until after it matures"?

Often, but not always.

What happens on maturity of your existing one?  Some will roll over into a new fixed term by default (although you can override this) but most will just be converted into a variable easy access one, from which you can transfer at any time with no penalty.

To be honest, I don't know. They haven't told me yet (it really is not far away!) -- contrast this to another provider which I also have a fixed ISA with, who have sent me several emails and walked me through their online maturity options process already!

eskbanker

ShezaEU said:

eskbanker said:

ShezaEU said:

Is there a box you can tick on these things that says something like 'My current ISA is maturing soon, make sure you don't touch it until after it matures"?

Often, but not always.

What happens on maturity of your existing one?  Some will roll over into a new fixed term by default (although you can override this) but most will just be converted into a variable easy access one, from which you can transfer at any time with no penalty.

To be honest, I don't know. They haven't told me yet (it really is not far away!) -- contrast this to another provider which I also have a fixed ISA with, who have sent me several emails and walked me through their online maturity options process already!

If you share the name of the provider and product then chances are someone on here will know, even if it isn't spelt out in the original product info.

kaMelo

eskbanker said:

ShezaEU said:

Is there a box you can tick on these things that says something like 'My current ISA is maturing soon, make sure you don't touch it until after it matures"?

Often, but not always.

What happens on maturity of your existing one?  Some will roll over into a new fixed term by default (although you can override this) but most will just be converted into a variable easy access one, from which you can transfer at any time with no penalty.

I've never seen one without that choice. The wording may vary but the options available are usually along the lines of;
1. Proceed as soon as possible and pay any penalty.
2. Serve the full notice period or wait until maturity before processing the transfer.

ShezaEU

eskbanker said:

ShezaEU said:

eskbanker said:

ShezaEU said:

Is there a box you can tick on these things that says something like 'My current ISA is maturing soon, make sure you don't touch it until after it matures"?

Often, but not always.

What happens on maturity of your existing one?  Some will roll over into a new fixed term by default (although you can override this) but most will just be converted into a variable easy access one, from which you can transfer at any time with no penalty.

To be honest, I don't know. They haven't told me yet (it really is not far away!) -- contrast this to another provider which I also have a fixed ISA with, who have sent me several emails and walked me through their online maturity options process already!

If you share the name of the provider and product then chances are someone on here will know, even if it isn't spelt out in the original product info.

It's Virgin Money.

eskbanker

kaMelo said:

eskbanker said:

ShezaEU said:

Is there a box you can tick on these things that says something like 'My current ISA is maturing soon, make sure you don't touch it until after it matures"?

Often, but not always.

What happens on maturity of your existing one?  Some will roll over into a new fixed term by default (although you can override this) but most will just be converted into a variable easy access one, from which you can transfer at any time with no penalty.

I've never seen one without that choice. The wording may vary but the options available are usually along the lines of;
1. Proceed as soon as possible and pay any penalty.
2. Serve the full notice period or wait until maturity before processing the transfer.

For example, there are several mentions on this thread that Trading 212 don't offer deferral until maturity:

https://forums.moneysavingexpert.com/discussion/6546025/trading-212-cash-isa-transfer-in

kaMelo

Thanks.
That quite a serous omission on Trading 212's part and the first time I've ever seen the option to defer an ISA transfer not available. 

eskbanker

ShezaEU said:

eskbanker said:

If you share the name of the provider and product then chances are someone on here will know, even if it isn't spelt out in the original product info.

It's Virgin Money.

Their currently available one year fix (1 Year Fixed Rate Cash E-ISA issue 649) states:

After the fixed rate period your account will become a variable rate Cash ISA

but the reason I specified provider and product is that they're not necessarily all treated the same.  Did you retain the Ts & Cs from when you opened the account?

eskbanker

kaMelo said:

That quite a serous omission on Trading 212's part

Are you suggesting that there's some sort of regulatory obligation to offer that facility?  Bear in mind that ISA managers aren't even required to accept transfers in at all....