Loss of interest on transfer of cash ISA to new provider

smartiepants

Thanks 10-66 appreciate the reply, does this mean that the money accrues interest tax free year after year for the life of the ISA even if you have it for 10 years plus.

In other words if I invest £3000 now £3600 in April and each April thereafter for a total of 10 years, I would eventually receive tax free interest on £46,000 plus the interest received each year of investment. Sounds too good to be true somehow if this is the case!!!!! (all figures approximate)
Thanks xx

10_66

Gross interest is accrued each year, i.e., ISA opened in April 2007 for £3,000, interest is added on its anniversary in April 2008 (assuming interest is paid on an annual basis). Gross interest will continue to be earned on a compound basis for as long as you leave it in an ISA. Similarly, if you open another ISA in April 2008, the same applies to that, etc.

smartiepants

Thanks again for the information, I don't know why I have never considered this before!?!?!?!?!?!? also just getting to grips with stoozing!!

Researching as we speak, who to put our money with tomorrow, £6,000 now and another £6k in April.

bristolleedsfan

smartiepants wrote: »

Thanks again for the information, I don't know why I have never considered this before!?!?!?!?!?!? also just getting to grips with stoozing!!

Researching as we speak, who to put our money with tomorrow, £6,000 now and another £6k in April.

If i was you i would go with Nationwide 1 or 2 year fix unless you need access to the funds sooner.

KRBS have a longer track record of ISA best buy rates than the others that are currently in the best buy table.

Loughborough BS are the only provider in best buy table that pays interest on the first working day following receipt of cheque ( quickest for starting to pay interest on new deposits, ie not transfer in cheques)

smartiepants

Thanks "bristolleedsfan" for the information, the money is currently in an E savings account, does it have to be done by cheque or can you do a direct transfer into the ISA?

KRBS ???? could this be Kent Reliance Building society??

Thanks xx

bristolleedsfan

smartiepants wrote: »

Thanks "bristolleedsfan" for the information, the money is currently in an E savings account, does it have to be done by cheque or can you do a direct transfer into the ISA?

KRBS ???? could this be Kent Reliance Building society??

Thanks xx

http://www.krbs.co.uk/directisa.aspx

smartiepants

I signed up for an ISA yesterday evening, whilst reading through the terms and conditions the process was timed out, and I needed to start the complete process again, it had deleted all my previous details, so I shut it down in a huff, will try again today.

carpy

are there any updates to this?

i'm certain my ISA transfers in previous years have had interest back-dated to when the 'old' ISA was 'closed', but i've just asked Natwest about my pending ISA transfer into them and they are saying interest will start from clearance of funds!!:mad:

smartpicture

My ISA transfer has just completed after 1 month, old one closed down on the day they issued the cheque so I lost one months interest.