How long for funds transferred to be received in an ISA

JohnB47

I recently arranged a transfer of a Trading 212 Cash ISA to a Hargreaves Lansdown Stocks and Shares ISA. Trading sent me an email last Friday (13th March) at 09:53 to say the transfer was complete.

Checking the Trading ISA showed that the balance was nil. Same for the HL one. However, I've just checked again now and the funds are still not showing in the HL ISA.

Is this normal?

The transfer involved me completing a form and returning it to HL. Perhaps Trading have sent a similar paper document to HL (a cheque!) and that's what's taking the time?

eskbanker

Yes, ISA transfers aren't like faster payments between current accounts, and entail more admin and checks, and sometimes posting of physical paperwork, so nothing to be alarmed about.

The breakdown of the 15 working days allowed for cash ISA transfers is:

The new ISA manager has 5 business days to forward the instruction to you [the ceding provider].

You have 5 business days to send the funds and information to be provided to the new ISA manager.

The new ISA manager has 3 business days to apply the funds to the new ISA.

The other 2 days are to allow for time taken for first class post between you and the new manager.

but cash to S&S ISA is subject to a longer timeframe (30 calendar days in total).

Some providers are much quicker than others though…

JohnB47

https://forums.moneysavingexpert.com/discussion/comment/81925332#Comment_81925332

Thanks.

I'm hoping "The new ISA manager has 3 business days to apply the funds to the new ISA" is the bit relevant to me. I'll report back later in the week.

JohnB47

Update: All sorted now. The money has arrived in the S&S ISA with 'Trading' and 'Settle' dates of 13th March, so the transfer was recorded as instantaneous between providers.

I've now transferred the cash from the S&S ISA to the cash ISA but, curiously, I had to leave one pence in the S&S ISA, presumably to leave it open.

I don't really want it so I'll look at closing it at some point.

JohnB47

Me again. Curiously I have a problem.

It seems the transferred-in funds go into a 'default savings product' and this earns only 3.2%. I've just tried to change the default product to the one earning 4.3% (which has £20000 in it) but it says the maximum for that account is £20000, which it already holds. Also, I can't move money between these two accounts.

I've sent them a message about this but has anyone any idea what's going on?

I opened the HL Cash ISA with £100 cash and then transferred-in over £80000 from Trading 212. HL has put £20000 in the cash ISA earning 4.3% and has the rest in the default savings product' earning 3.2%. It says the maximum that can be held in the 4.3% account is £20000.

I've done some searching but can't find any restrictions on transferred-in money earning less interest than deposited money.

Any thoughts?

Edit: Had a quick reply from HL:

" The Hargreaves Lansdown (powered by Shawbrook) Easy Access 4.30% AER product has a maximum allocation of only £20,000 per client.

This is why the remaining £XXXXXX has been moved into the Hargreaves Lansdown (powered by Shawbrook) Easy Access 3.20% AER product.

You are able to move the £XXXXXX into a different savings product offering a better interest rate if you want to."

I've asked them to check again but if this is the case I'm out of there ASAP.

Another Edit:

THis is their second reply:

"I can confirm that the Hargreaves Lansdown (powered by Shawbrook) Easy Access Cash ISA has a maximum holding limit of £20,000. The current rate is 4.30% AER (4.21% tax-free), and this limit is outlined in the product summary box.

I appreciate this may not have been clear at the time of application, but we would always recommend reviewing the product summary box, as it contains the key features and limits of the account."

I have now read the 'Summary Box' and sure enough it says the ISA has a balance limit of £20000. THis is something that is never made clear during the account set up.

Oh well, another transfer coming up.