Transfer Cash ISAs Discussion Area

Nels

Thanks for the prompt reply, thought it probably was but am getting worried about the daftest things lately.:o

Spiggle

No problem at all.

Spigs

davej87

Hi,

I have gotten myself a bit confused and need some advice. I have an ISA that matured in July and have not done anything with it (£3600). Im just wondering if I transfer the ISA to another account can I still put £5100 in the ISA this year or will it count towards the £5100 so I can only put another £1500?

Thanks in advance

10_66

davej87 wrote: »

Hi,

I have gotten myself a bit confused and need some advice. I have an ISA that matured in July and have not done anything with it (£3600). Im just wondering if I transfer the ISA to another account can I still put £5100 in the ISA this year or will it count towards the £5100 so I can only put another £1500?

Thanks in advance

As long as the £3,600 hasn't had any contributions made to it this financial year, you are allowed £5,100 for this year's subscription. This can be added to your existing ISA (if the terms and conditions permit), or paid into an entirely different one.

Razoo

I decided to transfer my and my wife's previous year's ISAs to new providers to secure better interest rates.

We each arranged two transfers:

Kent Reliance to Barnsley Building Society (at 3% Fixed rate 1 year).
Nationwide to Aldermore Building Society (at 3% Fixed rate 1 year).

All of the documents and transfer forms for the four transfers were posted out First Class on the same day (20 August).

Kent Reliance were very efficient and transferred our ISAs in just a few days. The money was in our new Barnsley Building Society accounts and earning interest by 2 September. Nationwide, on the other hand, are extracting the urine.

In the case of the Nationwide ISA transfer, we are talking about a considerable sum of money built up over many years of TESSA/ISA savings. The transfer request went in to Nationwide on 23 August 2010, and Nationwide closed both my and my wife's ISA accounts on 31 August. This, obviously, will be the date when Nationwide stopped paying interest on our money. The problem is, Aldermore have not received the transfer cheques yet, and I can't even establish conclusively whether Nationwide have sent them out, or not.

It would appear that Nationwide close accounts, and then there is the delay whilst the cheques are raised, authorised and posted. I was told by Nationwide today that they send the cheques out by 2nd Class Post, just to delay things even further!

It's quite obvious what Nationwide are up to - they close the accounts and then procrastinate for their own gain. The longer it takes for the money to reach the new account, the longer Nationwide have the use of the money without having to pay any interest.

During my telephone conversation with Nationwide today, they suggested that the cheques could have been lost by the Royal Mail, and I might have to wait whilst they are cancelled and new cheques are issued. Yeh, right! The Royal Mail has simultaneously lost two cheques in two separate envelopes. I don't think so.

I know they have 30 days to effect a transfer, but once the account has been closed, the cheque should be sent out First Class the same day.

I have transferred ISAs before; from Birmingham Midshires and from Barclays. In both instances the transfers were processed in a very timely manner.

I still have quite a lot of other savings with Nationwide - but not for much longer.
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Razoo

KingL

It's frustrating when an ISA transfer fails. However, it's very common for cheques to be sent second class post and you don't have any evidence that Nationwide are the ones at fault (maybe both envelopes are sitting on the floor in Aldemore's post room right now). I regularly have items lost in the Royal Mail -at least 10% of things that I send/are sent to me are apparently lost in the post. At least Nationwide are talking to you about it - some ISA providers won't even engage in a conversation until the 30 days have passed. fwiw, there are plans afoot to tighten the targets for the speed and efficiency for ISA transfers industrywide.

andypandy1

I completely agree that the cheque should be sent out First Class the same day.

I went through a similar experience with Santander when they closed my ISA with over £50k in it and then sent a cheque by snail mail which took 10 days to arrive with my new provider (I was able to prove this as my new provider had date stamped the correspondence on receipt). I complained to their customer services department and without any argument they agreed that it was entirely inappropriate that such a large cheque be posted by anything other than 1st class mail and they promptly reimbursed me for the lost interest for the 10 days. I would say it would be well worth your effort to make a similar complaint and if that fails get the Financial Ombudsman involved because you are being treated very unfairly.

Razoo

KingL wrote: »

It's frustrating when an ISA transfer fails. However, it's very common for cheques to be sent second class post...

Maybe it is, but that doesn't make it acceptable. What possible reason can there be for using 2nd Class post, other than to delay the transfer of the funds? It's surely not a postal cost issue?

...and you don't have any evidence that Nationwide are the ones at fault (maybe both envelopes are sitting on the floor in Aldermore's post room right now).

I was very impressed with Aldermore's helpful approach when I called. They confirmed the ISA funds were not yet in my account, then they confirmed the cheques had not been logged as received, then I was put on hold whilst the post was checked to see if the cheques had been received that day. They hadn't.

Aldermore have also written to Nationwide twice regarding the transfer funds. I now have a letter from Aldermore advising me that if Nationwide do not transfer the funds by 23 September, they will have to cancel my ISA account.

I have spoken to Nationwide twice, and on neither occasion could I get categoric confirmation that the cheques had actually been sent out. Both advisors did 'justify' the delay by saying "the cheques would only have been sent 2nd Class post." :mad:

fwiw, there are plans afoot to tighten the targets for the speed and efficiency for ISA transfers industrywide.

It can't happen too soon!
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Razoo

Razoo

andypandy1 wrote: »

I went through a similar experience with Santander... sent a cheque by snail mail which took 10 days to arrive... I complained to their customer services... they promptly reimbursed me for the lost interest for the 10 days.

I would say it would be well worth your effort to make a similar complaint and if that fails get the Financial Ombudsman involved because you are being treated very unfairly.

Don't worry, Nationwide will not be getting away with this one!

A suitably worded letter will be going in straight in at the top. And I'll be sending the letter by First Class Recorded Delivery!
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Razoo

bibi_neko

I have a question, I've looked through the past few pages and I haven't read a similar story.

I have a Tax Haven ISA with Barclays for the past few years. I've added £5100 to the savings for the current financial year. I want to move it to Principality, who asks for accounts to be open with £1 minimum but that means if i transfer my old savings I would have added £5101 for the year?

My question is can I still open the account with principality and just not transfer all the money over? or what can I do to move my ISA to a higher interest rate without affecting my already paid allowance?

Many thanks in advance for any advice given.