ive locked in with close bro

ToastLady

https://forums.moneysavingexpert.com/discussion/comment/82106437#Comment_82106437

You don't pay tax on interest accrued within an ISA.

refluxer

https://forums.moneysavingexpert.com/discussion/comment/82105919#Comment_82105919

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.

mrcrumb

https://forums.moneysavingexpert.com/discussion/comment/82106498#Comment_82106498

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.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82106432#Comment_82106432

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.

refluxer

https://forums.moneysavingexpert.com/discussion/comment/82106518#Comment_82106518

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.

https://forums.moneysavingexpert.com/discussion/6560664/shawbrook-isa-transfers-out-slow-for-all

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.

mrcrumb

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.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82106778#Comment_82106778

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.

northernstar007

update

had a email from shawbrook transfer been declined, i noticed the matured isa went into a new easy isa acc with new acc number so i take it thats the reason it got declined

so ive called close brothers up with the new account number they are going to put a new request in

hope this goes through during the night, will keep you guys updated

mrcrumb

Yes, if you select a maturity option the account number changes and the original transfer instruction will fail (because the maturing account has been closed). You will keep the same account number with the default maturity account (don’t give a maturity instruction).

What you are doing to rectify the error is correct.

northernstar007

ive called close brothers with the new account number with shawbrook, and your correct i did select in the maturity option with shawbrook to put it in a easy access so i take the blame for the slight delay