Transferring ISA Bond from United Trust Bank to Lloyds

phillyt2k

Last year I applied for an ISA 1 Year Bond with United Trust bank. This is due to mature on the 22/05/2025 with interest to come.

 

On the 14/04/2025 I applied for a new ISA with Lloyds, I’ve already paid into this account.

 

Do I need to wait until the 22nd before I can transfer this to my Lloyds one, or else I won’t get the interest?

 

With United Trust there is a “maturity instructions” which I need to action.

 

There is “New Account” or “Repayment”

 

“New Account” lists 6 different ISA 1 Year Bonds. Can I just pick one of these, then transfer this to my new Lloyds ISA after the 22nd. Or is it not that simple?

eskbanker

If you commit to a new one year fixed term account with the existing provider then that would entail penalties for premature access, so worth avoiding, as is the option of repayment (outside the ISA shelter) - aren't there any easy access ISAs that they'll let you convert to while the transfer goes through?

phillyt2k

It does say

If you’d like to reinvest your funds into our Easy Access Account blah blah but then I don't see an option for an easy access account...

slinger2

This:

https://www.utbank.co.uk/deposits/managing-your-account/account-maturity/

says "For maturing ISA accounts, if we don’t hear from you, your funds will be placed in an instant access Cash ISA at the prevailing account interest rate. This account tracks the Bank of England base rate (currently 4.50%) minus two per cent.

The funds will retain their tax-free status within the ISA scheme while they are held in this ISA Call Account."

El_Torro

I actually transferred out of United Trust Bank myself recently. As slinger2 says if you don't give them instructions the money will stay in an ISA but you will only be getting 2.5% interest in an easy access format. Or 2.25% presumably, now that the Bank of England rate has dropped.

The interest rate isn't great but at least you're free to move the money out whenever you want. I waited until after the fixed rate had ended to request the transfer, just to make sure I wouldn't get stung with a penalty. 

Is your ISA with Lloyds on a fixed rate? If so you might be limited as to how long you can wait before adding more to it. 

phillyt2k

Thanks Slinger2, I had looked at this (sorry , not allowed to post link)

It's just because it said "holding account" I wasn't sure if this was an ISA and I'd still able to transfer.....



Thanks El_Torro also, I wasn't too bothered about the lower interest rate as it wouldn't be staying in there for very long. Plan was to move it asap.

With regards to this though:

"Is your ISA with Lloyds on a fixed rate? If so you might be limited as to how long you can wait before adding more to it."

Yes its fixed rate 1 year ISA, when you say adding more to it, does this include a transfer? I thought transferring didn't count towards the allowance? Or am i misunderstanding what you mean?

El_Torro

I don't often go for fixed rate Cash ISAs but as I understand it for the Lloyds 1 year fixed you can't add money to it after you have opened the account and made the initial payment. I believe this includes not allowing transfers in. 

The good news is that while Lloyds' interest rate of 4.00% is relatively competitive for a 1 year fixed rate there are various providers out there that offer a bit higher. 

phillyt2k

Thanks again El_Torro, have you seen any more official/technical info?

I've had a quick look but all I can see on the basic FAQ's is this:

refluxer

Lloyds are often mentioned on here as one of the few ISA providers who allow new subscriptions to be added to their fixed rate cash ISAs throughout the duration of the fixed rate period, although I don't think they make it obvious that this is the case in the account T&C's.

AFAIK, there are no ISA providers who allow you to transfer-in in the same way - providers either insist transfer-in requests are submitted at the time of account opening or they have a deadline for receiving these requests. 

Shawbrook are the only provider I've heard of who have actually allowed later transfers-in in the past at their discretion, but they aren't allowing this at the moment.

t0rt0ise

Is there not an option on the Lloyds transfer in form to tick to say to transfer when the ISA has matured? I always do transfers that way, then you don't need to give any maturing  instructions.

35har1old

refluxer said:

Lloyds are often mentioned on here as one of the few ISA providers who allow new subscriptions to be added to their fixed rate cash ISAs throughout the duration of the fixed rate period, although I don't think they make it obvious that this is the case in the account T&C's.

AFAIK, there are no ISA providers who allow you to transfer-in in the same way - providers either insist transfer-in requests are submitted at the time of account opening or they have a deadline for receiving these requests. 

Shawbrook are the only provider I've heard of who have actually allowed later transfers-in in the past at their discretion, but they aren't allowing this at the moment.

Progressive will let you transfer in within the tax year of account opening and cash deposits upto your allowance