ISA question

sheilavw

I have always saved with the Halifax. I have a one year fixed ISA 3,35% which matures in December. I was listening to Martin Lewis who mentioned Chip? paying over 4%. Can I move to them at anytime or do I wait until the maturity date? He also said that they do the transfer for you? Thanks

wmb194

https://forums.moneysavingexpert.com/discussion/6675956/isa-question

What are the terms of the Halifax fixed rate Isa? Fixed rate Isa bonds usually have an interest penalty for closing them early. If the penalty is low enough it still might be worth transferring before maturity.

friolento

If you are on a fixed term, you would almost certainly incur a penalty if your ISA gets moved before maturity. You need to check your T&Cs / ask Halifax.

Be careful with Chip as some of their T&Cs have pitfalls. Visit the dedicated ISA sub-forum for more.

masonic

It's probably closest to this one:

web.archive.org/web/20251216121031/https://www.halifax.co.uk/isas/cash-isas/isa-saver-fixed.html

Halifax has consistently imposed a penalty equivalent to 90 days interest on early closure of their 1 year fix. This means you would need a new rate of at least 3.85% to break even by December.

There are plenty of 1 year fix options that would leave you better off - there are 7 options above 4.5%: https://moneyfactscompare.co.uk/isa/1-year-fixed-rate-isas/?sort-filter=standard-order

These are all a better rate than Chip's 4.42% with strings attached.

Farway

https://forums.moneysavingexpert.com/discussion/comment/82066499#Comment_82066499

Even Tesco offer 4.4 fixed should OP want a "well known" name

sheilavw

thanks, looks like i would be better changing when it matures in December and seeing what's the best deal then

p00hsticks

He also said that they do the transfer for you? 

Yes - whenever you transfer an ISA from one institution to another, you always approach the company that you are opening the new ISA with and ask them to handle the transfer across in order to preserve the ISA status of the money - don't try to do it yourself by withdrawing and paying money back in as you will effectively be losing some of your allowance that way.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82066573#Comment_82066573

Probably yes.

You would probably benefit generally from reading through the ISA forum . Lots of threads about fixed rates, ISA transfers and Chip.

ISAs & tax-free savings — MoneySavingExpert Forum

sheilavw

thanks so much