Transfer Cash ISAs Discussion Area

rb10

otisye wrote: »

I also have account in Natwest. While on the website i read about the isa's they offer and it says that if i transfer my current isa to them they will offer 3.35% interest while if i was initially opening one with them the interest would be 2.6.

Note that the Natwest ISA comes with a trick.

You don't start earning that interest until around 6 weeks into holding the account. This means that the actual interest you receive will be lower than 3.35%.

You can get a higher rate from Santander. The same procedure regarding transferring would apply.

Polly05

Is the new santander direct isa 3.3% no matter how much is in it?

blueberrypie

Polly05 wrote: »

Is the new santander direct isa 3.3% no matter how much is in it?

Yes. Minimum opening deposit of £2500, but no maximum.

MoneySaverLog

badger09 wrote: »

The only Cash ISA Saver I can see on Lloyds website is a variable rate account, with a bonus fixed for 18 months, but there are no restrictions on withdrawals

There is also a fixed rate one...

http://www.lloydstsb.com/savings/fixed_rate_cash_isa.asp

badger09

MoneySaverLog wrote: »

There is also a fixed rate one...

http://www.lloydstsb.com/savings/fixed_rate_cash_isa.asp

Yes, I'm aware of that, but the OP referred to a 'cash ISA saver' opened for 1 year

WhiteSpace

MoneySaverLog wrote: »

There is also a fixed rate one...

http://www.lloydstsb.com/savings/fixed_rate_cash_isa.asp

...and... but the fixed rate one is fixed for two years and the OP states just one. (?)

otisye wrote: »

:
-I have not subscribed and will not subscribe to another cash ISA in the same tax year that i subscibed to this cash ISA
:

Regardless of the cooling off period (although this is required in order to close your 'brand new' ISA), if you are physically closing one and opening another (since you have no previous years subscriptions to transfer) then the "subscribing to more than one cash ISA in the same tax year" rule does not apply. (Ref: "Cash ISA Loophole") - I believe you can only do this once in any one tax year. (?)

otisye

thanks for all your answers!you have been really helpful!
one last point that i m getting a bit confused has to do with the cooling off period.
does it mean i should wait 14 days before i transfer the ISA or i must transfer it within 14 days?

KTF

The cooling off period means that you have 14 days to change your mind i.e. can close it within that period with no penalty.

cashwise123

Regarding the loss of interest of a maximum of 15 days when transferring between Cash ISAs, would people agree that a useful rule of thumb would be that the new rate of interest needs to be at least 4.2% higher than the old one?

In other words 15/365 = 0.042 (approx)

E.g. I recently looked at moving from West Brom BS at 3.06% (now not open to new savers) to Santander at 3.3%. 3.3/3.06 = 1.078 or an increase of 7.8% which would on the face of it make the transfer worthwhile

Bri1

Last year I transferred an ISA to the Halifax, they paid interest from day one of the transfer process & when the transfer was complete they added that interest to the account straight away.