Mature ISA transfers loss of interest

Aidlock

When I have transferred several ISA between different banks having given them more than 15 days notice prior to the maturity date the bank closing the account has transferred the money to a low interest account and then several days later transferred the money to the new ISA. This has resulted in loss of interest difference between 0.05 and 4.5% of 6 days on one transfer and 4 days on another recent transfer. When I challenged them the bank said they were operating within the current rules as they have 15 days to complete. I complained to the FCA that their rules were losing customers money but as it is within the current rules you can't take it to the ombudsman. ? Anybody else having this problem and did anybody get their lost interest back?

Hoenir

To earn the interest the bank has to lend the money out to a borrower.  Which they don't. Likewise the bank needs to cover the administrative costs of processing your request and additional communications. Hence no free lunch is available. 

35har1old

Hoenir said:

To earn the interest the bank has to lend the money out to a borrower.  Which they don't. Likewise the bank needs to cover the administrative costs of processing your request and additional communications. Hence no free lunch is available. 

Applied for transfer on the 4th money sent on 7th and credited same day

eskbanker

Aidlock said:

When I have transferred several ISA between different banks having given them more than 15 days notice prior to the maturity date the bank closing the account has transferred the money to a low interest account and then several days later transferred the money to the new ISA. This has resulted in loss of interest difference between 0.05 and 4.5% of 6 days on one transfer and 4 days on another recent transfer. When I challenged them the bank said they were operating within the current rules as they have 15 days to complete. I complained to the FCA that their rules were losing customers money but as it is within the current rules you can't take it to the ombudsman. ? Anybody else having this problem and did anybody get their lost interest back?

The 15 business days for cash ISA transfers doesn't start from the date of your request if you're giving advance notice, so the measure is 15 business days (i.e. three weeks) from maturity:

Cash ISA to Cash ISA transfers must take place within 15 business days of the transfer instruction being received by the new ISA manager, unless the investor stipulates that the 15 days starts on a later date.

https://www.gov.uk/guidance/transfer-an-isa-if-youre-an-isa-manager#cash-isa-transfers

Unfortunately (within those current rules) you can't mandate that the money moves immediately on maturity, so it's not really 'lost' interest that you can 'get back' as such, in that it's not something you were ever actually entitled to.