Advice needed transferring ISAs

popsy20

Both my husband and I have Instant Access ISAs with Nationwide BS.

I have only just learned (through this site) that it is possible to transfer the funds to other accounts which have higher interests.

When is the best time to transfer?

and

I have looked at the Alliance & Leicester ISA direct which is paying 6.25% (inc 1% bonus) until May next year but there is a penalty of 180 days interest taken if the funds are then transferred again - how do I work out how much this would be?

Any other advice would be appreciated

Thank you

MrMicawber_2

It shouldn't really matter when you transfer since it is an instant access account. Sometimes / often you don't get interest on the day of closing an account and the day of opening an account. (Nice if you could though - you could churn like mad).

Calc is Balance x Rate x 180/366 (or more usually 365)

E.g. 5k at 5% is 5,000 x 0.05 x 180/366 = 122.95

Mikeyorks

popsy20 wrote: »

When is the best time to transfer?

There is no best time (for easy access ISAs) ... but best to avoid the period March / mid - April as most ISA providers get a bit frantic.

I assume its the A&L Direct 4 you are quoting? If so the fact that there's a penalty for transferring out isn't easy to spot? In fact it's fairly clear it's a 'no notice' product - so you can transfer out at will and without penalty! Are you confusing it with a fixed rate product ... most of which attract a 6 month interest 'hit'.

http://www.alliance-leicester.co.uk/savings/index.asp?page=direct-isa&ct=HomepageDirectISATextSecondaryRight