ISA transfer

katies_mum

I currently hold £89,000 in a Shawbrook Isa but this is paying 3.7%, my plan is to transfer £80,000 to another Isa provider (keeping the new account under £85,000) and then I would move the remainder into one of my existing Isa`s.  I have just read on the Shawbrook website that they do not allow partial transfers, the whole amount has to the transferred and the account closed.  This would put me in the same position as I am now.  Please might anyone have any suggestions as to how to get round this.  Thank you, any advice would be much appreciated.

jimjames

Move it all to a new provider that allows partial transfers then move it onwards as you require

Mark_d

Personally I would never keep that kind of money in cash for an extended period of time.  But if I was going to do so, then I'd probably use an NS&I ISA.  That's a 100% secure solution.

refluxer

katies_mum said:

I currently hold £89,000 in a Shawbrook Isa but this is paying 3.7%, my plan is to transfer £80,000 to another Isa provider (keeping the new account under £85,000) and then I would move the remainder into one of my existing Isa`s.  I have just read on the Shawbrook website that they do not allow partial transfers, the whole amount has to the transferred and the account closed.  

Are you sure that's definitely the case ? I had a Shawbrook easy access cash ISA a few years ago and I don't remember that limitation. It does say in the T&Cs for my particularly account that 'You can transfer your balance out to an alternative ISA provider at any point' but I don't think that necessarily means that partial transfers out aren't allowed.

In the past, there was always a requirement to keep current year subscriptions together (so if the balance solely consisted of current year's subscriptions then a partial transfer-out wouldn't be possible) but, following last year's ISA rule change that now allows you to spread the current tax year's allowance among different cash ISA providers, presumably that's no longer relevant.

katies_mum

Thank you.  Mark_d, I would never usually have that balance in any account, a couple of years interest has taken the balance up and for some reason I hadn`t checked it.

OK, jimjames, I hadn`t thought about that, thank you, will see what is available.

refluxer, this is the info I read on the Shawbrook website, I hadn`t realised what I wanted to do would not be possible!
Partial Transfers 
We don't offer partial transfers, so if you wish to transfer funds from your Shawbrook ISA to another provider, you’ll need to transfer the whole amount and close your Shawbrook ISA.  

refluxer

katies_mum said:

refluxer, this is the info I read on the Shawbrook website, I hadn`t realised what I wanted to do would not be possible!
Partial Transfers 
We don't offer partial transfers, so if you wish to transfer funds from your Shawbrook ISA to another provider, you’ll need to transfer the whole amount and close your Shawbrook ISA.  

Ah yes, you're right - thanks for the clarification. Odd that they don't explicitly state that in their account T&Cs, as it's not common for easy access accounts to be restricted in that way.

Jimjames's suggestion above is your best course of action, IMO. While transferring the whole balance into an NS&I easy access cash ISA would certainly get around the £85k FSCS limit problem, you'd be losing out on a 4-figure sum in interest (PA) due to their current rate being so much lower than the best currently available elsewhere.

katies_mum

I will definitely look around for another account, anything paying more than 3.7% that will allow me to do what jimjames has suggested as this seems the best way to sort it.   I didn`t know NS&I did ISA`s, I agree their rate is even lower than Shawbrook.  Such a shame as Shawbrook have always had quite good rates.

friolento

Unfortunately, NS&I does not take transfers-in.

"Transfers in from other ISA providers not allowed."

https://www.nsandi.com/files/asset/pdf/direct-isa-brochure.pdf

VNX

katies_mum said:

Thank you.  Mark_d, I would never usually have that balance in any account, a couple of years interest has taken the balance up and for some reason I hadn`t checked it.

OK, jimjames, I hadn`t thought about that, thank you, will see what is available.

refluxer, this is the info I read on the Shawbrook website, I hadn`t realised what I wanted to do would not be possible!
Partial Transfers 
We don't offer partial transfers, so if you wish to transfer funds from your Shawbrook ISA to another provider, you’ll need to transfer the whole amount and close your Shawbrook ISA.  

I used this work around in January moved all money to Coventry then split it 

katies_mum

Thank you VNX, we have maxed our our Coventry accounts so not an option.  Its a shame, as I really like the Coventry and would not hesitate to open more accounts with them if I could.

ToastLady

I've just looked at Monument's t's and c's, and they do allow partial transfers out.  It's app only.
Monument EA flexible ISA rate is still at 4.76% at time of posting, which might be a possibility for you. 
https://www.monument.co/savings/easy-access-cash-isa


Copy and paste job from T's & C's.
Transferring to another ISA provider

You can transfer your Easy Access Cash ISA (fully or partially) to another ISA provider at any time.

In accordance with the ISA Regulations, you can transfer the full or partial amount of your current or

previous tax years’ subscriptions to another ISA provider.

You'll need to contact your new ISA provider to start this process. Your new ISA provider is required

to forward the request to us on your behalf within 5 business days of receiving your instruction.

Business day in these Terms has the same meaning as in the ISA Regulations.

Within 5 business days of receiving the transfer request from your new ISA provider, we'll send

your money and the supporting information for the transfer to your new ISA provider (provided

there isn’t any reason to stop the transfer, for example, issues relating to fraud or other criminal

activity). We'll restrict your account while we're processing your transfer, which means you won't

be able to pay money in or out during this time. The money in your account will continue to accrue

interest up to the day we transfer it to your new ISA provider. If you transfer the full balance of your

Easy Access Cash ISA, we'll close your account.

The transfer process should take no longer than 15 business days in total.