Icesaver introducing ISA from tomorrow

masonic

dreamalittle wrote: »

My transferred ISA funds (transferred from Smile) have appeared in my Icesave account today. I sent the form off on the first day, so it's taken two weeks in total. Not bad going!

The interesting thing will be to compare the date your account was closed (when Smile write to you) with the date the funds were credited. I don't think anyone has established how much interest is lost during the transfer process yet.

bristolleedsfan

masonic wrote: »

The interesting thing will be to compare the date your account was closed (when Smile write to you) with the date the funds were credited. I don't think anyone has established how much interest is lost during the transfer process yet.

Loss of interest during transfers can vary, from experience :

Nationwide and Leek BS backdate date of opening of ISA transfer in and interest to the date on transfer cheque to ensure no loss of interest is incurred.

Scottish BS credited lost interest after i emailed asking Scottish about loss of interest during transfer in.

I emailed Loughborough BS on Monday asking Loughborough what their policy was regarding loss of interest/ no loss of interest on ISA transfer Ins.

I indicated to Loughborough BS that my 2007/08 Barclays ISA would get transferred in May 2008 to whoever offers the best overall deal. ( rate and minimal interest lost during transfer in process.)

( Loughborough BS stated that they pay interest on "all" cheque deposits from 1st working day following receipt of cheque, they will discuss the point about backdating interest on ISA transfer ins during their preparations for the new ISA tax year. )

KRBS told me that its a Banking Code "recommendation" that ISA transfer Ins are backdated so that no loss of interest is incurred, KRBS added that being as its only a "recommendation" and not compulsory they dont backdate interest on ISA transfer ins.

Perhaps someone could ask Icesave and Scarborough when they start paying interest on ISA transfer ins, the latter i would be suprised if they backdate interest so that no loss of interest is incurred.

dreamalittle

masonic wrote: »

The interesting thing will be to compare the date your account was closed (when Smile write to you) with the date the funds were credited. I don't think anyone has established how much interest is lost during the transfer process yet.

The money left my Smile account on Thursday (24th), presumably with interest up to that date. The letter I had from Icesave says they start calculating interest from the day the funds hit the account, which was yesterday. Shame it was over a weekend, otherwise it would probably have only been a couple of days lost.

bristolleedsfan

dreamalittle wrote: »

The money left my Smile account on Thursday (24th), presumably with interest up to that date. The letter I had from Icesave says they start calculating interest from the day the funds hit the account, which was yesterday. Shame it was over a weekend, otherwise it would probably have only been a couple of days lost.

Interesting how smile transferred out on a thursday knowing they would get to keep the interest over the weekend.

masonic

dreamalittle wrote: »

The money left my Smile account on Thursday (24th), presumably with interest up to that date. The letter I had from Icesave says they start calculating interest from the day the funds hit the account, which was yesterday. Shame it was over a weekend, otherwise it would probably have only been a couple of days lost.

Well, 3 working days is not bad, especially considering their transfer department is likely to be very busy at the moment. I suspected there might be longer delays, which was my reason for asking.

masonic

bristolleedsfan wrote: »

Interesting how smile transferred out on a thursday knowing they would get to keep the interest over the weekend.

They stop paying interest from the date on the transfer cheque, so they get to keep even more if they send it earlier.

mumtaz

I just phoned Icesave to ask about transferring in cash ISA funds of more than £1000...no problem. However, I also asked what happened if the saver withdrew funds and the balance dropped below £1000.
Although it isn't obvious from anything I could see on the website I was told that the interest rate drops to - wait for it - just 0.5% !! for the entire time the account is below £1000. Sounds sneaky since it's not clear from their up front info.
So if you're not rich enough to be sure to keep at least £1000 in all the time you will earn next to nothing.
Perhaps better off in an account that pays the same rate for all balances over £1 throughout the year.

masonic

mumtaz wrote: »

So if you're not rich enough to be sure to keep at least £1000 in all the time you will earn next to nothing.

I assumed no interest at all would be earned on balances less than £1000. That or they'd prevent you from withdrawing the last £1000 without closing the account.

bristolleedsfan

masonic wrote: »

I assumed no interest at all would be earned on balances less than £1000. That or they'd prevent you from withdrawing the last £1000 without closing the account.

U assumed wrong,;) was handy that mumtaz phoned to get precise information which should have been stated within the product guide.

Lavendyr

I sent off my forms on the 17th Jan, and got a letter from Icesave dated the 27th to say that my transfer requests had been sent on that day to my ISA providers. So I guess now it's just a question of how long the other providers take to transfer the money over.