Existing cash isa transfers

20122013

I am baffled with the transfer of my existing cash ISA. 

On 9 May 2025 Shawbrook has accepted my application to transfer out from Natwest ISA (exp 29 May 2025).

On 9 May 2025 (standard) email from Natwest to say that my ISA will be transferred to one of their lower rate cash ISA account. 

On 29 May 2025 as mentioned above. Natwest has transferred my ISA to one of their lower rate cash ISA account. (I'd have thought that Shawbrook would have requested this to be transferred out? on the 30 May 2025)

On 2 June 2025 Shawbrook had advised that Natwest had not authorised the transfer.

My question is, there is a 15 day window for the transfer to complete, does that mean, the transfter out provider can authorise transfer out any day within the 15 day and take the risk of not completing within the time limit?  the interest rate for the new ISA provider will apply after my money has been cleared in their account and not before? 

Both organisations are saying they have followed the rules.  

eskbanker

What was the maturity date for the original NatWest ISA and what did you nominate as your choice to them?

20122013

The maturity date for the original NatWest ISA was 29/05/25 and what did you nominate as your choice to them?  I did not nominate any of their product as I have applied for a transfer out with Shawbrook on 9 May 2025.

eskbanker

20122013 said:

The maturity date for the original NatWest ISA was 29/05/25 and what did you nominate as your choice to them?  I did not nominate any of their product as I have applied for a transfer out with Shawbrook on 9 May 2025.

Did you specify to Shawbrook that the transfer should be deferred until after the maturity date?

If not, then that might explain NatWest's action, but even if you did, that doesn't mean that the 15 working day transfer clock starts ticking on the 9th, but instead on the 29th, and even then it certainly doesn't guarantee that it'll happen immediately after maturity, just that it shouldn't be actioned before then, i.e. there will usually be a gap between maturity and transfer, during which time the money has to be somewhere at NatWest.

https://forums.moneysavingexpert.com/discussion/comment/81546336/#Comment_81546336

20122013

thanks for the link.

I did specify to Shawbrook that the transfer should be deferred until after the maturity date, 29/05/25.

ON 02/0625 Shawbrook told me that Natwest has not released the funds and I need to request Natwest to action .

Natwest said they have not seen Shawbrook's request. later on Natwest said it was accepted on 04/06/25 and asked  what is my problem as the transfer had been completed within 15 business days. 

I agree with you that the transfer clock starts ticking on the 29th.

So I know not to expect any interest until day 16th from the day of the transfer? may I check that the transfer can start any day with the 15day limit? and there is no way to avoid earning very low interest during the transfer process, unless the existing cash ISA provider has a decent rate easy access account. 

eskbanker

20122013 said:

So I know not to expect any interest until day 16th from the day of the transfer? may I check that the transfer can start any day with the 15day limit? and there is no way to avoid earning very low interest during the transfer process, unless the existing cash ISA provider has a decent rate easy access account. 

It's recommended practice for the receiving provider to start paying interest from the day after the money leaves the ceding provider, regardless of how long the transfer process actually takes or when it occurs, so there shouldn't be any day on which it's not earning, even though it isn't viable to guarantee no time at the lower easy access rate.

20122013

Interesting, as Shawbrook response was that I get interest (from the Natwest CASH ISA  although very low but still an interest.n To me is still a big difference.

eskbanker

20122013 said:

Interesting, as Shawbrook response was that I get interest (from the Natwest CASH ISA  although very low but still an interest.n To me is still a big difference.

I don't really understand what you or they are saying there, that you see as being a big difference from something else?

20122013

eskbanker said:

I don't really understand what you or they are saying there, that you see as being a big difference from something else?

' To me is still a big difference.'  To me 3% difference in interest rate is  a big difference to me.

eskbanker

20122013 said:

eskbanker said:

I don't really understand what you or they are saying there, that you see as being a big difference from something else?

' To me is still a big difference.'  To me 3% difference in interest rate is  a big difference to me.

Oh right, I thought you were suggesting that Shawbrook's remark was inconsistent with what I'd posted about the interest dovetailing between the providers.

20122013

eskbanker said:

Oh right, I thought you were suggesting that Shawbrook's remark was inconsistent with what I'd posted about the interest dovetailing between the providers.

thanks for explaining about how the interests work