Does Anyone Use Notice Cash ISA's?

1spiral

Just noticed that Aldermore have a 60 day notice cash isa that is a better rate than my limited access isa with them but can't see why anyone would use a notice account with an isa. There are already too many hurdles to overcome moving funds between isa's without adding in the additional challenge of timing a transfer 60 days in the future so was just wondering if anyone else out there has any pointers on why and how to use them.

esselle_aitch

https://forums.moneysavingexpert.com/discussion/6661444/does-anyone-use-notice-cash-isa-039-s

I’m interested in learning about this too. I’ve got an old 30 day notice cash ISA with Aldermore which I opened alongside a HTB ISA many years ago (by old, I mean I haven’t contributed to it for a few years). The interest rate is now very low so would like to open a new cash ISA and transfer the money to that. I’m not sure how it works with the 30 day notice period though as like you said, it would be hard to get the timing right without risking a penalty. Or does the 30 day notice period only apply to withdrawals instead of transfers? (am hoping that’s the case!)

slinger2

I've never had an ISA notice account but have used non-ISA ones. The main advantage of them is that for (say) a 90-day account they have to give you 105 days of a rate reduction (not all notice accounts offer this). That way they act as a sort of rolling fixed-rate product. When notified, I can get the money out before the rate falls. Perhaps less useful for an ISA since I'd have to give notice and then do a transfer.

A couple of years ago I had a fair amount of money in these, but rates are much less tempting now, so I'm down to nothing.

esselle_aitch

I’ve just checked the T&Cs of my current 30-day notice cash ISA and it says that I do need to give the full notice period for an ISA transfer to avoid penalty. The T&Cs of the new cash ISA I’d like to open says that all transfers in must be completed within 30 days. I don’t know how to get around this without getting fined. Or else I’ll have to keep my money in the old ISA forever at a really low interest rate which isn’t ideal either. Now wishing I never opened a notice cash ISA!

slinger2

https://forums.moneysavingexpert.com/discussion/comment/81939516#Comment_81939516

Can't you give notice now but only open the new account in 30 days time and initiate the transfer then. Of course, the product may not be available then.

Edit: I see the problem. You've got specify now where you want the money to go.

esselle_aitch

https://forums.moneysavingexpert.com/discussion/comment/81939529#Comment_81939529

guess so although I’m not sure how to give notice for something like this, will need to give them a call. Usually when applying for the new cash ISA, the new provider contacts the old provider to initiate the transfer. Also, like you pointed out, the product may not be available in 30 days time. I’m sure I can’t be the only person to have gone through this so am interested in knowing how others have handled this.

Albermarle

I have not handled this personally but one possible solution would be to transfer it to an Aldermore easy access ISA ( after giving the requisite 30 days notice) . From their you would be free to transfer it anywhere you liked.

esselle_aitch

https://forums.moneysavingexpert.com/discussion/comment/81939723#Comment_81939723

I phoned up Aldermore and this was indeed one of their solutions offered to me. The only issue with that is then having to do two ISA transfers and, perhaps in the meantime, the product I like the look of now will be withdrawn. If their easy access cash ISA had a better interest rate, that would’ve been the ideal solution though.

Anyway, for anyone else with notice cash ISAs, it seems you have to call up the current provider and ask them to apply the notice to your account. They then give you a window of when the transfer can take place (eg, a date starting 30 days from your phone call and up to a week to do the transfer). You’ll then need to start an application for the new cash ISA and select the option instructing the new provider to complete the transfer once the notice period is up. At that stage, there’s a comment that the transfer has to be done within 30 days, so am not sure what happens if the notice period is longer. It’s certainly made me think twice about opening a notice cash ISA in future. I’ve made 4 phone calls today (2 to each provider) - these ISA transfers never seem to get any easier!

subjecttocontract

Well notice cash ISAs usually come with a higher interest rate than easy access ISAs and that's what attracts people to them. Everything comes at a price and in exchange for that higher interest payment it comes with its own problems later on.

1spiral

The comments above have all confirmed my original thoughts that there doesn't seem to be an obvious reason to opt for a notice isa, even if the rate offered is better than easy access rates. The hoops you have to jump through can be challenging enough when transferring isa's, without the added difficulty in timing it or moving it to an interim isa in the process.

esselle_aitch

https://forums.moneysavingexpert.com/discussion/comment/81940120#Comment_81940120

Agree, not sure I’d do it again. I only opted for it as it was linked to a HTB ISA which allowed me contribute to both at the same time.