Info on problems transferring a tessa please

pipkin71

A bit of advice please.

In 2000, a tessa was set up.

In December 2003, once the account had matured, the building society changed the account to a tessa isa. Other than interest and compounded interest, no other money has been put into the account since 2000 and no money has been taken out.

The plan is to transfer the money to another bank [higher interest], but the building society have said that there is a £25 transfer fee because the account has not been open for 5 years.

They accept that the account was opened in 2000, but they say, because it was changed to a new account in 2003, there is a fee to transfer before December 2008. Is this right?

Would it be wise to write to the building society's complaints department, or accept the £25 transfer fee?

Thanks

Pipkin xxxx

RayWolfe

What do the Terms & Conditions say?

pipkin71

I will have to check RayWolfe.

I've a feeling it was considered a new account even though the account hasn't changed, and so the building society are probably right.

It's just annoying if the £25 transfer fee has to be paid, to get the higher interest rate.

Pipkin xxxx

Meltdown_2

Unless it is a really bad interest rate, it might be more cost-effective to wait until December 2008, and then transfer it - a £25 charge could take some time to recoup via a better interest rate.