Transfering ISA from Natwest

Helix

Hi

I have an ISA with Natwest. I opened it a couple of years ago when I turned 16. I currently have £1500 in it which I put in this year which is from my Student Loan.

I recently looked at what the interest rate is and its now 4.75%, I know it wasn't the best when I opened it but it was around 5.8%. The main reason I chose Natwest was because it seemed easier as I already had and an account with them and I could transfer money instantly. Problem is 4.75% is rather close to the interest I'm paying on the loan so I will be loosing money if they put it up again this year.

Can I transfer this ISA to another bank with a higher interest rate and how would I go about it? I know normally I could just open an account with another bank and transfer the money over but it seems much more complicated with ISAs.

Thanks for any help
Craig

Crabman

It's fairly straightforward to transfer - open a new account then arrange for Natwest to transfer your ISA directly to the new account. The golden rule is do not withdraw the money as you'll lose the tax-free benefits on that amount.

The Article explains in detail how ISA transfers work and lists current best-buy accounts - you could get 6.25% with A&L's Direct ISA account.

Helix

Thanks for that.

I decided to go for the icesave ISA because hopefully I won't have to keep changing too often with them and it is still higher than the interest I am paying on my loan. I've just sent of the transfer form, seemed easier than I thought providing they transfer it ok.

Megalomaniac

My HSBC online banking no longer recognises my ID, so I assume icesave have now transferred my HSBC ISA. It took about 4 weeks so not too long, and hassle free.