Transfer Cash ISAs Discussion Area

DragonQ

Well if you're really looking for the best possible return, you can transfer every time a new deal appears (this could easily be a few times a year). The best rates usually appear in March and April though.

10_66

DragonQ wrote: »

Well if you're really looking for the best possible return, you can transfer every time a new deal appears (this could easily be a few times a year)...

Trouble with doing that is if you make repeated transfers you'll lose interest whilst the transfer is going though, so any benefit from an increased interest rate may be offset against loss of interest.

DragonQ

10_66 wrote: »

Trouble with doing that is if you make repeated transfers you'll lose interest whilst the transfer is going though, so any benefit from an increased interest rate may be offset against loss of interest.

Nope, your new "ISA manager" (i.e. bank) has to pay you interest from the date they receive your transfer form. In fact, you'll probably be receiving interest from both your old bank and new bank for a few days!

10_66

DragonQ wrote: »

Nope, your new "ISA manager" (i.e. bank) has to pay you interest from the date they receive your transfer form. In fact, you'll probably be receiving interest from both your old bank and new bank for a few days!

When I've made enquiries to various companies only some of them will agree to this, some have said they'll only pay interest once funds are received.

WhiteSpace

DragonQ wrote: »

Nope, your new "ISA manager" (i.e. bank) has to pay you interest from the date they receive your transfer form. In fact, you'll probably be receiving interest from both your old bank and new bank for a few days!

Is this something which has changed in the last year or two? Whenever I have transferred a cash ISA in the past I have encountered a transition period when I've received no interest!?

DragonQ

Hmm I assumed it was a rule but I can't find anything about it. Personally I've only ever done two transfers, both to Halifax, and I've had bonus interest added on both times.

It seems that Halifax, Lloyds TSB and Nationwide do this, I guess you'd have to check other banks before deciding whether to transfer.

10_66

DragonQ wrote: »

Nope, your new "ISA manager" (i.e. bank) has to pay you interest from the date they receive your transfer form. In fact, you'll probably be receiving interest from both your old bank and new bank for a few days!

10_66 wrote: »

When I've made enquiries to various companies only some of them will agree to this, some have said they'll only pay interest once funds are received.

DragonQ wrote: »

Hmm I assumed it was a rule but I can't find anything about it. Personally I've only ever done two transfers, both to Halifax, and I've had bonus interest added on both times.

It seems that Halifax, Lloyds TSB and Nationwide do this, I guess you'd have to check other banks before deciding whether to transfer.

As mentioned in my above post, only some will offer this guarantee, Halifax and Nationwide are a couple of them, but most do not.

lewistye

DragonQ wrote: »

Hmm I assumed it was a rule but I can't find anything about it. Personally I've only ever done two transfers, both to Halifax, and I've had bonus interest added on both times.

It seems that Halifax, Lloyds TSB and Nationwide do this, I guess you'd have to check other banks before deciding whether to transfer.

The Office of Fair Trading ruled at the end of 2010 that ISA transfers should now take no more than 15 working days. With regards to payment of interest, they said that banks/building societies *should*continue to pay interest while the transfer takes place, although I don't think this was part of the actual ruling, more just a recommendation.

MarkyMarkD

The OFT didn't "rule" anything - they just said what they though. The ISA regulations were revised - that's a change in the law - which mandated the 15 day transfer period. There is no legal requirement to pay interest during the transfer period.

Ark_Welder

The banks have agreed that the transfer of a cash ISA should normally be done within 15 working days.

Your new bank should start paying interest on the date of the cheque, the date the electronic payment was begun or day 16 of the transfer process – whichever is earlier.

http://www.fsa.gov.uk/pages/consumerinformation/product_news/banking/know_your_rights/moving/index.shtml


http://www.hmrc.gov.uk/ria/fifteen-day-transfers.pdf

BBA Cash ISA Transfer Guidelines, July 2011