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ive locked in with close bro
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Does that cover the expected interest?
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Something to be aware of regarding multi-year accounts is that if the interest is all paid at the end then tax may be due in that year. You'd have missed out on the allowance from the other 4 years.
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You don't pay tax on interest accrued within an ISA.
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Ah yes, i missed the isa bit, thanks.
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Be aware that Shawbrook are known for not always actioning transfers on the maturity date (even when requested in advance) which means that the money can sit in the default maturity account for many days (even weeks) until the transfer occurs. I'd be interested to hear how you get on.
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Normally the account converts to the maturity account on the maturity date. The next working day Shawbrook exchanges electronic messages with the new provider (Close Brothers) to ensure they are ready to receive the funds, then the funds are transferred. This is an automated process. It usually only takes a few days. Cases where it takes much longer occur when something goes wrong.
It’s not ideal earning 0.1% for a few days though.
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Yes, it would cover interest accrued up to the date of the firm's failure, and hence the advice sometimes seen on here not to hold the exact FSCS deposit protection limit in an account, in order to leave some headroom for the interest.
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Yes - that is how electronic ISA transfers arranged in advance often occur with other ISA providers, however there have been many threads on this forum expressing frustration that Shawbrook can sometimes take as long as 2-3 weeks to carry out this type of transfer.
Eg.
While this is technically allowed (under the 15 days allowed for transfers by the ISA guidelines), to those affected this doesn't seem fair when the money is held is a very low-paying interest account, despite arrangements often having been made weeks in advance.
If the transfer was actually actioned on the date of maturity then the new provider would usually backdate the interest to that date (meaning that no real loss of interest would occur), however the transfer in these cases often isn't actioned for a week or more, leading to (potentially) large sums of money being held in the maturity account earning 0.1% for quite a while.
It would definitely be interesting to here how the OP gets on, to provide a bit of balance to the negative experiences that others have had with this.
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The 15 days window was set to allow paper form transfers with time for post and manual processing. We should except it to be much quicker for electronic transfers (and speak up if it isn’t). I know there are posts from people who have waited several weeks. We have instructed Vida to transfer a Shawbrook ISA when it matures later this month. I will post the time it takes on here for information.
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Only two of the 15 days are assigned to the transmission of paperwork by post, but sending money electronically doesn't in itself eliminate the other 13 days, although it is true that many transfers are completed much faster now.
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