Transfer Cash ISAs Discussion Area

boobbby

crunchie1 wrote: »

I opened one if these in August with my annual Isa allowance. It is 2.25 %. I also had a fixed rate Isa which matured on 31 October and became instant access 1%

Nationwide's online banking is allowing me to transfer the money online into the issue 4 isa, although I believe from it's terms and conditions that it shouldn't.

Has anyone else done this ?

The options are normally simply grayed-out if it is not allowed. I would be happy with instant access 2.25 for now, but is there a danger they won't pay it on the whole balance

If you have an ISA that has matured (Presumed from a previous tax year) then you are entitled to transfer it to any provider that accepts transfers including Nationwide

crunchie1

Thanks, but the problem is the Nationwide flex exclusive isa issue 4 does not accept transfers according to its terms and conditions. But the online banking has let me put it in.

boobbby

crunchie1 wrote: »

Thanks, but the problem is the Nationwide flex exclusive isa issue 4 does not accept transfers according to its terms and conditions. But the online banking has let me put it in.

Your absolutely right that it does not accept transfers so well done in being able to transfer a previous cash ISA into it. For peace of mind get in touch with Nationwide and I would not be surprised if they allowed the transfer to stand as it was their faulty system that let it in. I notice last night one of my Nationwide accounts disappeared but has returned today so they have maybe been playing around with their systems.

crunchie1

boobbby wrote: »

Your absolutely right that it does not accept transfers so well done in being able to transfer a previous cash ISA into it. For peace of mind get in touch with Nationwide and I would not be surprised if they allowed the transfer to stand as it was their faulty system that let it in. I notice last night one of my Nationwide accounts disappeared but has returned today so they have maybe been playing around with their systems.

Thanks, yes I will do that. I don't want to a nasty surprise in a year's time. They have messed up more than one of our online accounts recently, but sorted them out in the end, with 3 lots of £50 compensation thrown in. But I have lost a lot of trust in them all the same. They closed our very helpful local branch so it is difficult to get things fixed.

VfM4meplse

I'm interested in knowing what -if any- action other posters have taken with their FD cash ISAs?

alahol2

VfM4meplse wrote: »

I'm interested in knowing what -if any- action other posters have taken with their FD cash ISAs?

Nothing. There is nowhere else that offers better than their top rate of 2% without tying the money up. Even if I could only get 2% in another ISA I would transfer out of FD in protest, unfortunately I can't.

crunchie1

boobbby wrote: »

Your absolutely right that it does not accept transfers so well done in being able to transfer a previous cash ISA into it. For peace of mind get in touch with Nationwide and I would not be surprised if they allowed the transfer to stand as it was their faulty system that let it in. I notice last night one of my Nationwide accounts disappeared but has returned today so they have maybe been playing around with their systems.

I have had a reply from nationwide to say I cannot do it because it is 'impossible' ! I seriously doubt that they read the message before they reply. I have replied to them and said it is not impossible as I have done it, as they will see if they look.

Awaiting their reply with interest. I also have an old e-isa account with £2 in it, which is getting 1.75%. This appears to accept transfers in too.

VfM4meplse

alahol2 wrote: »

Nothing. There is nowhere else that offers better than their top rate of 2% without tying the money up.

Thought so

thenudeone

alahol2 wrote: »

There is nowhere else that offers better than their top rate of 2% without tying the money up.

But with an ISA you are never tying the money up.

You can ALWAYS have instant access to a Cash ISA, even a fixed rate, fixed period one (unlike a non-ISA acount); but you do have to pay a penalty, often 180 days interest, for early withdrawal.

So - even if you withdraw from a 5-year fixed rate ISA paying say, 3.15%, after just 18 months; you will still be better off than if you had left it in an instant access ISA paying 2%.

As long as it's unlikely you'll need the money within a couple of years, and unless you think instant access ISA rates will rise significantly within two years, the fixed rate ISA is still the best bet.

alahol2

thenudeone wrote: »

But with an ISA you are never tying the money up.

You can ALWAYS have instant access to a Cash ISA, even a fixed rate, fixed period one (unlike a non-ISA acount); but you do have to pay a penalty, often 180 days interest, for early withdrawal.

So - even if you withdraw from a 5-year fixed rate ISA paying say, 3.15%, after just 18 months; you will still be better off than if you had left it in an instant access ISA paying 2%.

As long as it's unlikely you'll need the money within a couple of years, and unless you think instant access ISA rates will rise significantly within two years, the fixed rate ISA is still the best bet.

I am aware that the cash is available from an ISA, no matter what.
But, at the moment, the best 5 year ISA is 3% (accepting transfers). It has a 240 day penalty. So if you leave after a year and 240 days you will be worse of than staying in a 2% ISA.

The point where it becomes better to be in a fixed ISA at 3% is somewhere around the 2 year mark. I live in hope that the rate may rise a couple of tenths over the next 2 years.