Will I lose interest if I transfer my ISA?

littlevet1

Hi all
I've done a search but can't find an answer to my question - I hope someone can help!
I have a Barclays Tax Beater ISA and as the bonus interest rate ends soon I want to transfer to another ISA. My question is, will I lose interest during the transfer period? If so, does anyone know how many days?

I am not sure who to transfer to yet - either LTSB (FRISA 6.5%) or Icesave. My problem is that I don't have £9000 in the Barclays ISA so wouldn't earn the full 6.5% until I top up with next year's allowance. Having read the comments and problems that some are experiencing with LTSB, does it make more sense to go with Icesave at 6.1% for the sake of a few pounds interest?

Thank you

10_66

With regards to loss of interest during transfer, it really depends on which provider you transfer your ISA to. Some will backdate the opening date of an account to the date or the date after that on the transfer cheque. However, not all providers will do this, so you need to check with them.

Re who you transfer to, if you wanted a fixed rate ISA, Nationwide offer a 1 year @ 6.15%. This has penalties for early withdrawal though, whereas the Icesave is instant access.

bristolleedsfan

Examples of whom backdates interest on ISA transfer in(s) are Nationwide BS, Abbey PLC, Halifax PLC,Saffron BS, Leek BS with LloydsTSB having been reported to backdate interest from customers experiences, the others ive quoted are fact based on my research.

Icesave and A+L have been reported by MSE poster (s) to not backdate interest to date of outgoing transfer cheque.

If someone has ISA (s) to the value of 9000+ and is happy to fix the money for 12 months then if it was me i would transfer to LloydsTSB.

In the event that the service they provide is unacceptable complain to the Chief Executive.

BTW : 10_66 : Today i received the first of my Nationwide 6.15% transfer In(s) : Transacted out on 27th Feb by KRBS, opened by Nationwide on 20th March ( took effect from 27th February) Certificate received today.

Second and third transfer in applications were posted to Nationwide BS the same day as u posted yours, one of which has been transacted out, the other "Barclays" Ive not heard a word from. _pale_

10_66

bristolleedsfan wrote: »

BTW : 10_66 : Today i received the first of my Nationwide 6.15% transfer In(s) : Transacted out on 27th Feb by KRBS, opened by Nationwide on 20th March ( took effect from 27th February) Certificate received today.

Second and third transfer in applications were posted to Nationwide BS the same day as u posted yours, one of which has been transacted out, the other "Barclays" Ive not heard a word from. _pale_

I've not heard anything from Barclays yet either, however, I've been checking online (I've got an old current account I keep open just for ID purposes), and the Tax Beater has disappeared today, so I guess things are on the move (unless they've lost it again!).

bristolleedsfan

10_66 wrote: »

and the Tax Beater has disappeared today, so I guess things are on the move quote]


Thats quicker than i was expecting. :shocked:

In theory if Nationwide fail to open the ISA within 5 days from receiving Barclays transfer cheque u ( and others) could complain that Nationwide broke its account opening promise.

littlevet1

Thank you both for your comments