ISA Maturity Date For Delayed Transfers

theFlash

https://forums.moneysavingexpert.com/discussion/comment/82098581#Comment_82098581

It couldn't be used as there was no account number created or online account listed until two days after the transfer completed, from the point of view of the customer. Whether their internal systems created anything on application isn't even relevant if the customer has no access to it. Legally, surely, it is unusable. And note that if the transfer hadn't completed successfully we wouldn't have had any access to any account at any point.

theFlash

Just wanted to add here, that I think that the advice I was given by the building society is likely to be wrong. I don't believe its logical that they calculate the interest as if it were fully funded on application. I pointed this out to them, but they reassured me that this was the case. As it was a senior manager that had conversed with head office on the matter, I have to take what they say as correct, until proven otherwise.

I believe that they actually calculate the interest from the day of application when it had no funds in it and not as it it were fully funded. For example how on earth would they know how much (exactly) was to be in that account. It makes no sense.

Either way, the conversations are recorded and all the notes taken. It will undoubtedly be all re-visited in a few months…

I don't feel at liberty to say the name of the organisation as its not my account, but will say that it is a large building society.

Based upon our experience, I would advise others to wait until maturity before transferring ISA's. Also to check when opening a new ISA if they automatically transfer the product to another fixed ISA, which makes the whole thing more difficult. Thanks again to @refluxer for this advice.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82099088#Comment_82099088

Fair enough - I haven't come across that scenario before, in that opening and funding accounts are generally two separate activities, so the former effectively being delayed by several weeks to align with the latter sounds unusual.

mrcrumb

As far as I know Nationwide building society promise to backdate interest to the day the transfer is initiated. But it’s not supposed to apply if there is a notice period or wait for maturity. That said, they have paid extra interest to me in the past with transfers where I ticked wait for maturity. Maybe the large building society referred to is Nationwide.

See promise 4

https://www.nationwide.co.uk/savings/help/savings-promises/