How do ISA Transfers work?

rathernot

Possibly a numpty question but one to which I'm simply not clear on the answer.

I have a Barclays ISA, forget the exact name but the popular one from last year, which I opened just before the end of March last year so managed to cram in the £3k for 2006-2007 and then £3k for 2007-2008.

For 2008-2009 they're paying a pretty paltry interest rate so I want to transfer it, not yet sure who to - I guess we'll see what's unveiled tomorrow then I'll choose somewhere.

I then want to stick in this years full allowance.

Anyway, what actually happens to get the money transferred?

I believe Barclays don't give me my money back for me to transfer, rather it is done through them somehow, is that correct please?

Thanks in advance.

bristolleedsfan

U get ISA application + transfer forms from your new chosen provider and normally return the application and transfer forms to new provider. ( A+L is one exception, in that instance u get transfer and ISA application forms from A+L and forward them to the present/current provider I believe.)

Barclays then send your ISA account funds direct to your new chosen provider.

Best to apply to transfer out around a month before 1% bonus is due to be made defunct to avoid being on a lower rate during the transfer out process.

rathernot

Thanks for that, sounds like it's a case of fill in the forms then sit back and wait.

Tbh I'm not that fussed about maximising my interest over the transfer process, it's more the principle of dangle a carrot and then the following year screw your existing customers in favour of brand new ones - still it's a game and I guess you have to just play along and look after #1.

bristolleedsfan

rathernot wrote: »

Thanks for that, sounds like it's a case of fill in the forms then sit back and wait.

Tbh I'm not that fussed about maximising my interest over the transfer process, it's more the principle of dangle a carrot and then the following year screw your existing customers in favour of brand new ones - still it's a game and I guess you have to just play along and look after #1.

True. :T ...