Opening an ISA, but not funding immediatelly

Loch_Lochy

Hi, I have 2 fixed rate Cash ISA's which are maturing in a month.

ISA rates for new accounts seem to be falling just now. I see that Bank of Scotland currently has a Fixed rate ISA which seems OK and allows funding for 60 days after opening.

Is it permissible to open a fixed rate ISA with BoS (without funding it, to secure the current interest rate) and wait for 30 days to see if there is a better rate available, from another Bank or Building Society?

If I then transferred my ISA's to a different provider (for a better rate), would the BoS account just close automatically without penalty?

I expect that when my ISA's mature, the current BoS deal will be the best rate available (from a known provider).

Many providers allow funding for up to 30 days after opening, but as a transfer can take around 15 days and my existing ISA's don't mature for 30 days, then I wouldn't meet the transfer deadline window.

Thanks for your help.

masonic

It will depend on the provider how exactly they deal with this, but generally an unfunded ISA will be closed at the end of the funding window, unless they are already processing an inward transfer.

Yorkie1

Loch_Lochy said:

Many providers allow funding for up to 30 days after opening, but as a transfer can take around 15 days and my existing ISA's don't mature for 30 days, then I wouldn't meet the transfer deadline window.

As others have said, you would need to look at the T&Cs of the receiving ISA. But my experience is that as long as the transfer request starts to be actioned within the funding window, it does not need to be completed within the window. My request to transfer an NS&I ISA to Kent Reliance was received by them a day or two before the window closed, but then took several weeks to go through - without problems. 

35har1old

Loch_Lochy said:

Hi, I have 2 fixed rate Cash ISA's which are maturing in a month.

ISA rates for new accounts seem to be falling just now. I see that Bank of Scotland currently has a Fixed rate ISA which seems OK and allows funding for 60 days after opening.

Is it permissible to open a fixed rate ISA with BoS (without funding it, to secure the current interest rate) and wait for 30 days to see if there is a better rate available, from another Bank or Building Society?

If I then transferred my ISA's to a different provider (for a better rate), would the BoS account just close automatically without penalty?

I expect that when my ISA's mature, the current BoS deal will be the best rate available (from a known provider).

Many providers allow funding for up to 30 days after opening, but as a transfer can take around 15 days and my existing ISA's don't mature for 30 days, then I wouldn't meet the transfer deadline window.

Thanks for your help.

The rates aren't great and it would appear that you would be restricted  to one ISA application with BOS.
If you wanted to proceed you could ask for the ISA transfer to proceed on maturity 
LLoyds offer similar 
Halifax offer similar plus a 5 year

ToastLady

BoS state that you need to open with £500, so presumably a transfer in would cover that, and then 60 days to fund with more if you so wish. That's the way I read it anyway, so whether your plan would work or not, suppose you can only try and see.
I notice that they have done away with the small boost that they used to give to existing customers on their ISAs.