Transfer Cash ISAs Discussion Area

akh43

I applied to transfer 2 of my isas to the Nationwide over 50 3 year fixed rate isa bond and when I applied the rate was 4.25%.

When I have received the bond today it is saying the rate is 4%:mad:

I note the rate has now changed to 4% on the website.

Are they supposed to give you the rate when you apply or the rate when the isa monies have been transferred?

MarkyMarkD

Up to them to say in their terms and conditions what they do, in these circumstances.

The better organisations guarantee the rate you reserved up front; the worse ones just give you any rate they want.

wellwell

Interest does not count towards your annual ISA allowance.

Squish_21

Ive just swtiched to a ISA with a better interest rate, just waiting for the ISA transfer to happen (completed the necessary form). Natwest informed me that the banks tend to use as much of the 30 days transfer time as they can and that most ISA transfers happen on the 28th day. Joy!

I wanna start earning some proper interest on my house deposit!!

MarkyMarkD

That's baloney. It might be how Natwest do it, but it's not my experience.

But on the other hand, Natwest is particularly bad at actually sending the requests to the other bank/BS involved - taking over a month in many cases. Doubtless they then spout this baloney about the other party delaying by almost 30 days to fob off complaints. :mad:

Stennent

Hi all, got a quick question and wondering if anyone can help...basically I have a not unhealthy amount in a Halifax ISA which is giving me a paltry 0.5% rate at the moment. I've started looking around and have found a good deal on a Santander ISA for 3% on amounts over £9000, instant access. I was considering switching to this but not sure if it's going to be worth it, mainly because I went into a branch to ask about it and was told that as it would only be in the ISA for around 30 days from the transfer time to April 5th I would receive less than £30 interest, which is actually lower than I would receive if I leave it in the Halifax ISA (~£45). Also, as we are planning on buying a house using this money in the very near future it wouldn't be in the ISA long....what do you think?

Baldur

The Santander Direct ISA offers 3% AER (variable) for 12 months from account opening.

Whoever you spoke to at the branch was talking out of an orifice which wasn't their mouth - the new tax year start date is irrelevant; it simply means that you could add another £5,100 (your 2010/11 allowance) to the account after 6th April and earn 3% (variable) on that as well until the anniversary of opening the account, if you wish.

Stennent

Thanks, I thought there was something a bit wrong with that! So let me just get this straight before I go and start the transfer.... basically if I transfer my money out of my Halifax ISA I will earn 0.5% on the money I've had in that account up until the date of account close/transfer which they will either transfer to my new ISA or hold in my Halifax account, then I will start earning 3% on the transferred money, obviously only up until the point I may need to take the money out (probably in a few months) ?

Baldur

Stennent wrote: »

Thanks, I thought there was something a bit wrong with that! So let me just get this straight before I go and start the transfer.... basically if I transfer my money out of my Halifax ISA I will earn 0.5% on the money I've had in that account up until the date of account close/transfer which they will either transfer to my new ISA or hold in my Halifax account, then I will start earning 3% on the transferred money, obviously only up until the point I may need to take the money out (probably in a few months) ?

That 's correct. The balance of the Halifax account, including any accrued interest will be transferred to the new provider - however, your original post suggests that you may misunderstand interest rates:

"...as it would only be in the ISA for around 30 days from the transfer time to April 5th I would receive less than £30 interest, which is actually lower than I would receive if I leave it in the Halifax ISA (~£45)....."

The interest rates quoted are ANNUAL, whereas the quote above suggests that you believe them to be monthly.

For a full year, £9,000 would earn £45.00 interest in the Halifax 0.5% account (approx. £3.82 for a 31-day month), while the same amount in the Santander 3% account would earn £270.00 (approx. £22.93 for a 31-day month).

Stennent

Yeah, thats what I thought, I think I just didn't explain myself very well! Sorry! I understand the interest rates, it was just that as I'll probably be taking the money out of the account shortly after April 5th this year I knew I would only accrue a month or so worth of interest. Thanks very much though, you've helped me get it straight in my head!