Transfer Cash ISAs Discussion Area

Busster

So where is my interest going if not into any years allocation? It's getting added to my ISA balance every month but it means it's just getting stuck somewhere unnable to access it?

I would have thought the interest is being re-invested and is included in the 09/10 allocation

Maybe I am a bit slow on the uptake, but any explanation would be appreciated!

murphydavid

Busster wrote: »

So where is my interest going if not into any years allocation? It's getting added to my ISA balance every month but it means it's just getting stuck somewhere unnable to access it?

I would have thought the interest is being re-invested and is included in the 09/10 allocation

Maybe I am a bit slow on the uptake, but any explanation would be appreciated!

Thousands of people pay in their total allowance at the start of the tax year and have their interest re-invested and compounded daily. This does not break the rules. If you have an instant access account you can withdraw any amount you like, capital or interest at any time (you may have to leave in £1 to stop the account being closed. If you are notified of your interest monthly you can withdraw it (or the same amount from your capital depending on how you want to think of it) as soon as you are notified, If you are notified annualy then you can't withdraw more than your initial capital because you won't know how much interest has accumulated, unless you close or transfer your account (in which case they will calculate how much it is at that point in time and pay you it). Thats how it works. No worries.

steamup

In view of the delays that can occur in transferring Isas and setting up new accounts can one lose interest between the transfers?

Baldur

steamup wrote: »

In view of the delays that can occur in transferring Isas and setting up new accounts can one lose interest between the transfers?

It's possible but normally the old provider pays interest up to the closure of the account on transfer to the new provider, while the new provider pays interest from clearance (or receipt, in some cases) of the transferred funds - so it should not amount to more than the few days taken for cheque clearance.

murphydavid

Baldur wrote: »

It's possible but normally the old provider pays interest up to the closure of the account on transfer to the new provider, while the new provider pays interest from clearance (or receipt, in some cases) of the transferred funds - so it should not amount to more than the few days taken for cheque clearance.

Yes quite right but. You are usually transfering it because the new account pays more interest than the old one (usually because the bonus rate has ended) so the longer the money is in the old account the longer you get the old account's rate. So if there is a delay in transfering you loose the difference between the two rates while it is held up. As with me, where my money is in an account that has recently started paying 0.5% and try as I might I can't get Santander to do the transfer.

Baldur

murphydavid wrote: »

...... and try as I might I can't get Santander to do the transfer.

What have you tried? If Santander are the new provider, they have 30 days to complete the transfer - if they fail to do so, raise a formal complaint.

murphydavid

Baldur wrote: »

What have you tried? If Santander are the new provider, they have 30 days to complete the transfer - if they fail to do so, raise a formal complaint.

Its a long story, but if you are interested: and so long ago my memory may not be 100% but I think
Filled in the on-line application for Abbey ISA - In which I could say I wanted to transfer in from an existing account and the amount but it did not ask for the full details. The last page said to expect an email within a week.
Checked daily no email and not in my spam folder.
Emailed them to say no email - Reply was I must phone them - I phoned them got an immediate acceptance of what I said and told the account was open and to expect postal mail - No mail in 14 days - Phoned again including a firm complaint from me - same response but still - No mail in another 14 days - Out of the blue mail saying all Abbey correspondence would now be with Santander but no info on my account ie no account number etc. - Out of the blue cash card from Santander with no accompanying letter - However now I had a card I could apply for on-line banking registration and did so. Got email response saying I was registered and to expect two separate security codes in the post. Got one of them so far, so still unable to do anything. I have been unable to initiate the transfer process so can't complain about the time it's taking and obviously I will not try to initiate via "the back door if there is one" till I am convinced I have control of my account. I have been waiting now 7.5 weeks in total. To me it’s a fairly large sum and if nothing comes in the post today I will give up. Three reasons - *The sheer agro, *The media is speculating on the collapse of the Euro and after the U.K. arm of the Icelandic banks shenanigans I would not like to be caught up in Spain doing the same and *do I really want to be involved with a company who seem to be taking over UK banks to aquire their trading names and assests (while the exchange rate is in Spains favour) while not maintaining decent banking practice to me and I must assume other customers.
Or as I said before I may have become unlucky and if my association with Santander is sudenly making me unlucky I could do without bad luck!

Baldur

murphydavid wrote: »

Or as I said before I may have become unlucky and if my association with Santander is sudenly making me unlucky I could do without bad luck!

The Santander 'branding' has had no effect upon Abbey's efficiency (or lack thereof) - they have been owned by Banco Santander for years and their previously good service declined immediately.

Abbey 'lost' an ISA transfer form of mine a couple of years ago (September) - branch had no record, although it had been handed to a member of staff, Scottish-based ISA Unit had no record of receiving it.

I took the hint and arranged for the not insignificant amount to be transferred to a fixed rate ISA account with the old provider and instructed them to ignore any future transfer requests from Abbey.

The following December I received a letter from Abbey to inform me that they had recently contacted my old provider about my ISA transfer application and that the transfer had been declined (unsurprisingly, given my instruction).

GlasgowSTR

Christina1982 wrote: »

whats the best cash isa thats about? I've been looking at Santander Group anyone got this one?

I called the Santander number to arrange an ISA transfer from another bank. I wasn't happy when one of the 1st questions I was asked was about my marital status. I asked if answers to personal questions were essential to my application or just for marketing information. The girl told me my application wouldn't be able to proceed unless I answered all her questions. I thanked her for her time and told her I would not be proceeding with my application.

Could someone please tell me why it is that banks feel it their business to ask non-financial questions. They can have my NI/Passport/Driving license numbers etc for identity/security purposes but I just can't see why they need personal information.

MarkyMarkD

You're quite right; there is no reason to need to ask your marital status other than to put you into a particular category for marketing purposes.

This can, of course, be to your advantage - they might decide that they have a great bargain product just for people like you.