Transfering a matured cash isa

Baronsedemi

why do banks make it so difficult to transfer a maturing isa to another one i already own? In this day of digital banking why do i have to download and print off a form and send it to my existing isa supplier for them to request the maturing isa transfer to them? In the mean time I'm guessing the time scale involved i will lose some interest. Stinks of a scam to me. Rant over.

molerat

Move to a bank that will do it on line then.  I have just done it, no paper involved, set up before maturity and all went  smoothly.  Account matured on Sunday 17th Nov and was in the new account Tuesday 19th.

eskbanker

Baronsedemi said:

why do banks make it so difficult to transfer a maturing isa to another one i already own? In this day of digital banking why do i have to download and print off a form and send it to my existing isa supplier for them to request the maturing isa transfer to them? In the mean time I'm guessing the time scale involved i will lose some interest. Stinks of a scam to me. Rant over.

Not a scam, and, as above, that's not a universal experience and many institutions will now handle transfers electronically.

The (maximum) cash ISA transfer timescales are set out in legislation as 15 business days, i.e. three weeks, but many providers will beat that comfortably - the recommended practice is that interest is dovetailed so that the new account pays it from the day after the old one ceases to, so you shouldn't lose out in the sense that the money should be earning interest every day.

Baronsedemi

molerat said:

Move to a bank that will do it on line then.  I have just done it, no paper involved, set up before maturity and all went  smoothly.  Account matured on Sunday 17th Nov and was in the new account Tuesday 19th.

What was your Bank? mine is Charter Bank whom i will be ditching because of this in April

molerat

Kent Reliance, currently offering 4.5% on a 1 year.  Looking on Moneyfacts they have an "easy to open" flag on accounts that offer reduced faff.

Yorkie1

molerat said:

Kent Reliance, currently offering 4.5% on a 1 year.  Looking on Moneyfacts they have an "easy to open" flag on accounts that offer reduced faff.

Kent Reliance's T&Cs for their 1 year fixed rate ISA say that the minimum deposit is £1,000, as well as that transfers in are allowed as you say. Do you know whether that's £1K new funds, or can be made up solely by transferred funds, please?

Reed_Richards

I've just opened a Kent Reliance account solely by an ISA transfer.

refluxer

Yorkie1 said:

molerat said:

Kent Reliance, currently offering 4.5% on a 1 year.  Looking on Moneyfacts they have an "easy to open" flag on accounts that offer reduced faff.

Kent Reliance's T&Cs for their 1 year fixed rate ISA say that the minimum deposit is £1,000, as well as that transfers in are allowed as you say. Do you know whether that's £1K new funds, or can be made up solely by transferred funds, please?

In my experience, when an ISA provider states a minimum deposit, a transfer (if large enough) will always cover this and there is never a requirement to add new subscriptions.

The only exception to this would be if the provider doesn't accept ISA transfers-in, in which case paying in a new subscription would obviously be required. Thankfully, this is rare and limited to only a very small number of ISA providers. (eg. Marcus).

Yorkie1

Thanks @refluxer

One further question, if I may. If you want to merge (transfer) more than one existing ISA to a single new provider, is there a general experience that the online application will allow the details of more than one of those existing ISAs to be input, or should I expect that a paper form would be needed for those that aren't the ISA to be transferred to be input? 

For those providers which only allow a transfer in to be done on application (e.g. Castle Trust), that seems a relevant consideration before starting the transfer process.

eskbanker

Yorkie1 said:

Thanks @refluxer

One further question, if I may. If you want to merge (transfer) more than one existing ISA to a single new provider, is there a general experience that the online application will allow the details of more than one of those existing ISAs to be input, or should I expect that a paper form would be needed for those that aren't the ISA to be transferred to be input? 

For those providers which only allow a transfer in to be done on application (e.g. Castle Trust), that seems a relevant consideration before starting the transfer process.

Surely that's the point, that there isn't a general experience, but one that varies between providers?

Reed_Richards

I recently opened an ISA with Kent Reliance by transferring in a matured ISA.  A few weeks later I wanted to transfer in another matured ISA but the online system had no provision to do this.  I could have topped up with a bank transfer easily but whoever designed their online system just hadn't thought of anyone wanting to do what I was trying to do.  So as a workaround I just opened a second ISA of the same type.