New ISA Manager and early transfer without penalty

paul_liverpoolfc

HI

I've just received an e-mail from Virgin Money with confirmation that my ISA Manager is officially changing to Nationwide from 2nd April.

My fixed ISA doesn't mature until the end of June and I was wondering if I'd still be penalised interest if I transfer by the transfer deadline.

Thanks

Paul

eskbanker

If your combined deposits are going to be over the FSCS limit, we’ll be in touch separately to explain your options. If you have a notice account or a Fixed Rate Bond which hasn’t matured yet, you can take your money out between 24 February 2026 and 1 June 2026 without giving notice, and without any charges.

You can also transfer your money from a Fixed Rate ISA between 24 February 2026 and 1 June 2026 without giving notice, and without any charges.

We’ll also let you know what you can do if you feel you have been financially disadvantaged because of your withdrawal.

https://uk.virginmoney.com/nationwide-transfer/savings/#q2-what-can-i-do-if-i-think-i-might-be-financially-disadvantaged-by-making-a-withdrawal

Altior

The information seems to be conflicting:

Q7. Can I transfer my ISA(s) to another provider? 

Yes, you have the right to move your ISA(s) to another provider. This is known as an ISA transfer and it makes sure that the money in your ISA(s) keeps it tax-free status if you move it.

If you want to transfer to a new ISA provider you’ll need to contact them to arrange the transfer on your behalf. The provider would then contact us, and we would transfer your ISA(s) to them.

If you’re planning to do this, please allow plenty of time, as we need to receive the transfer request from any new provider by 19 March 2026. You should also check your Terms to see if you’ll pay any charges, or if you'd lose our on any interest you’ve earned.

And includes a typo !

eskbanker

I'm assuming that they mean that they'll be relaxing terms specifically for those financially disadvantaged by virtue of holding combined savings over £120K as a result of the transfer, rather than giving a 'free pass' for everyone, but yes, there's some ambiguity there.

Altior

But they also state:

If your combined deposits are going to be over the FSCS limit, we’ll be in touch separately to explain your options.

I received this info directly via email as I have a 3 year bond, but I'm unaffected by the FSCS limit. It matures in July and has a 5.5% rate, so not critical but I may have pulled the money out early if there was no penalty. However the original t&c is a penalty of 120 days' interest.

paul_liverpoolfc

Received an e-mail from Virgin Money confirming no penalties.

"To help customers manage their balances, you will be able to make an ISA transfer or withdrawal between 24 February 2026 and 1 June 2026 to bring your overall balance in line with the new combined £120,000 FSCS protection without any penalties.· You will not need to give notice.· You will not lose any interest already earned.If you request a transfer or withdrawal outside of this period, your usual account terms and charges will apply. This may include withdrawal restrictions and potential fees."

Angelica123

https://forums.moneysavingexpert.com/discussion/comment/81903733#Comment_81903733

I think the key line is "bring your overall balance in line with the new combined £120,000 FSCS protection without any penalties."

If your combined money between NW and Virgin is under 120k it's not clear that the "without penalty " still applies.