Transferring ISA with long notice period

t0rt0ise

You usually need to contact the bank to give notice that you are going to transfer the ISA in 60 days time. You usually then get 14 days or so after the 60 days to initiate the transfer.

GrubbyGirl_2

Can you not transfer into an easy access ISA with your current bank and then transfer out when that has been done?

JGB1955

Can you give 40 days notice now and then, in 10 days time, apply to a new provider?  At that point there would only be 30 days remaining.....

JaneyW_3

Beware when making Fixed Term Cash ISA transfers. I had an ISA of £77,000 last year maturing with a Building Society and wanted to move it, once matured, to a bank with a better interest rate. You have to set up the new account first and then do the ISA move once the fixed term is complete. I set up the new account 10 days earlier than required just to be on the safe side. Once the new Fixed Rate account was opened I gave instructions to the holder of my ISA to move it on maturity. This was done with no problem but, at the end of my current term, I noticed that the interest paid to me was £100 less than I had expected! I queried it and it was due to the fact that, when I had set up the new account, the start of the 1-year fix is when you open it rather than when you pay into it. There is usually a 14 day notification of a fixed term ending and, if you wish to some or all of it, I suggest leaving the opening of a new account until the last day or so. I was pretty cheesed off to lose £100 as you can imagine!

flaneurs_lobster

Doesn't sound quite right, to be clear - you instructed the NEW ISA provider to transfer your funds, not the old maturing ISA provider? 

And they only moved the funds after the maturity date?

saajan_12

JaneyW_3 said:

Beware when making Fixed Term Cash ISA transfers. I had an ISA of £77,000 last year maturing with a Building Society and wanted to move it, once matured, to a bank with a better interest rate. You have to set up the new account first and then do the ISA move once the fixed term is complete. I set up the new account 10 days earlier than required just to be on the safe side. Once the new Fixed Rate account was opened I gave instructions to the holder of my ISA to move it on maturity. This was done with no problem but, at the end of my current term, I noticed that the interest paid to me was £100 less than I had expected! I queried it and it was due to the fact that, when I had set up the new account, the start of the 1-year fix is when you open it rather than when you pay into it. There is usually a 14 day notification of a fixed term ending and, if you wish to some or all of it, I suggest leaving the opening of a new account until the last day or so. I was pretty cheesed off to lose £100 as you can imagine!

You didn't lose £100, you got interest for every day the money was in the account. For the first 10 days, the money was in a different account so you got the interest there. 

Shedman

JaneyW_3 said:

Beware when making Fixed Term Cash ISA transfers. I had an ISA of £77,000 last year maturing with a Building Society and wanted to move it, once matured, to a bank with a better interest rate. You have to set up the new account first and then do the ISA move once the fixed term is complete. I set up the new account 10 days earlier than required just to be on the safe side. Once the new Fixed Rate account was opened I gave instructions to the holder of my ISA to move it on maturity. This was done with no problem but, at the end of my current term, I noticed that the interest paid to me was £100 less than I had expected! I queried it and it was due to the fact that, when I had set up the new account, the start of the 1-year fix is when you open it rather than when you pay into it. There is usually a 14 day notification of a fixed term ending and, if you wish to some or all of it, I suggest leaving the opening of a new account until the last day or so. I was pretty cheesed off to lose £100 as you can imagine!

You actually didn't lose that £100 (or at least not all of it).  

Your money was in the old ISA for 10 days or so earning interest, then the new ISA for 355 days (rather than the full 365 days, assuming it was a strict one year fixed ending on anniversary of date of opening. then you were free to move your ISA elsewhere (or it was in put into the second providers Easy Access ISA or such like after maturing) for those 'missing' 10 or so days so you got some interest on that.   You might not have got the full £100 in total but it was probably not a long way short.   

As always it pays to read the product details/t&cs of a product carefully....its not a catch or a scam its just the way some providers do it.  If you had waited until the last day of your old fix before opening the new one it might no longer have been available or rate might have dropped. Losing a period of the new fix is the price you pay for locking in a good rate whilst waiting for your old fixed ISA to mature and, as always, its a judgement call.

Dot18

Thanks both - will have a look at that link and haven't got to Virgin on my list so will give them a try next