Transferring out of Abbey Postal ISA (Issue 1)

ecuecc

Hi,

I am looking to transfer out of the Abbey Postal ISA (Issue 1), due to the poor interest it now offers (just 5.05% as of 1/1/08), and perhaps to Kent Reliance's direct variable rate mini cash isa (6.05% as of 1/1/08)

However, Abbey do not pay their interest on the ISA until 1st March. I was hoping to get some clarification on this issue: If I transfer before the 1st March, what happens to the interest I have earned this tax year with Abbey?
(If Abbey pay the interest upon transfer out, I would look to transfer ASAP.)

Also, could anyone confirm that Abbey do not charge any sort of penalty charge for transferring out of this ISA.

I realise a lot of new cash mini ISA products will be coming out in the next few months, so would it be best I wait it out or transfer out now (which I am probably more keen to do, seeing as the 5.05% is so low compared to what I could get, and very low compared to the 5.5% base rate)?

Your comments will be greatly appreciated.

Many thanks.

jem16

ecuecc wrote: »

Hi,

I am looking to transfer out of the Abbey Postal ISA (Issue 1), due to the poor interest it now offers (just 5.05% as of 1/1/08), and perhaps to Kent Reliance's direct variable rate mini cash isa (6.05% as of 1/1/08)

However, Abbey do not pay their interest on the ISA until 1st March. I was hoping to get some clarification on this issue: If I transfer before the 1st March, what happens to the interest I have earned this tax year with Abbey?
(If Abbey pay the interest upon transfer out, I would look to transfer ASAP.)

Interest is marked up in full on account closure if transferred so no need to wait.

Also, could anyone confirm that Abbey do not charge any sort of penalty charge for transferring out of this ISA.

Penalties are usually only on fixed ISAs so very unlikely unless this is a fixed ISA?

I realise a lot of new cash mini ISA products will be coming out in the next few months, so would it be best I wait it out or transfer out now (which I am probably more keen to do, seeing as the 5.05% is so low compared to what I could get, and very low compared to the 5.5% base rate)?

Your comments will be greatly appreciated.

Many thanks.

I would transfer now. You can always transfer again later.

ecuecc

Thanks. It's not a fixed rate ISA, so I think there won't be a penalty charge.

I still have some £230 that I can still contribute this tax year, so I think I'll pay that in first and then transfer the whole of the ISA out.

Just out of interest, I don't really wish to be chopping and changing my ISA every few months. I'd like to have an ISA that pays a rate consistently towards the higher end of what's on offer (like the Abbey ISA used to be) so would you say the Kent Reliance ISA is one that pays a consistent high rate?

Thanks again.

jem16

ecuecc wrote: »

so would you say the Kent Reliance ISA is one that pays a consistent high rate?

It seems to have been fairly consistent over the last few years.

PBA

Interest on your ISA would be added on closure, and there isn't any penalty from Abbey for transferring out.