Kent Reliance ISA - Moving Funds

meatandtwoveg

Hi,

My brother has an ISA with the Kent Reliance, currently paying 5.76% per annum. He has just today topped it up with the full 2008 - 2009 allowance against my advice, as i feel there are better products around, but he wants to keep all of his funds in the same product.

Anyway, i am wondering, if he moved it, where would you recommend, i ask because i think the Bank Of Corrupt England are going to drop maybe a couple of times this year, and who know's next year? It looks like the Kent Reliance are following the base rate down. So maybe it might be a good time to move the funds sooner rather than later?

The one thing which i do not like about the movement of funds within a cash ISA wrapper is the lost interest during transfer; does anyone recommend a product where wthey will cover the lost ineterest or even better do a BACS transfer rather than a snail mail cheque transfer?

So really i am looking for a product with a good rate of return, but more importantly to minimise lost interest during the transfer process.

Thanks.

P.S. Has anyone any experiences of moving money from the Kent Reliance Building Society ISA to another provider, how many days interest were/are lost? Are they efficient?

bristolleedsfan

KRBS are quick at transferring funds out. ( based on experience, obviously depends how long the new provider takes to contact them and LloydsTSB are not considered efficient according to posters on ISA sub forum)

http://forums.moneysavingexpert.com/showthread.html?t=725969

Loss of interest while cheque is in transit and being banked is down to the new ISA provider, the following backdate interest on ISA transfer ins to date of outgoing transfer cheque to ensure no loss of interest is incurred.

Abbey ( 6.25% variable) Nationwide ( 6.15% One or Two Year Fix) Halifax ( 6.20% 4 year fix)

Nobody knows how long Nationwide will hold its 6.15% fixed rates, a couple of us have said same thing for a few months so guess its take a gamble if he fancies a fix.
Nationwide say the rate is the prevailing rate when they receive the funds, like u say KRBS will in probability mirror all Base Rate movements so nothing to lose.

earlgrey_3

If he's got £9K available and you expect rates to fall how about Lloyds TSB - fixed @ 6.5% for a year.

Glad to hear Kent Reliance are quick - I'd heard the reverse. I'm transferring from them and from NS&I to Lloyds now so will find out. Lloyds were very helpful so fingers crossed.

bristolleedsfan

earlgrey wrote: »

If he's got £9K available and you expect rates to fall how about Lloyds TSB - fixed @ 6.5% for a year.

Glad to hear Kent Reliance are quick - I'd heard the reverse. I'm transferring from them and from NS&I to Lloyds now so will find out. Lloyds were very helpful so fingers crossed.

Depends how long it takes for the new provider to contact KRBS to be fair, KRBS have no passbook to ask for and are unlikely to be doing many new ISA applications so no reason for them to be slow.

If u read the LLoyds TSB threads in ISA sub forum delays are more likely to be at Lloyds TSB end.

I transferred out of KRBS in February, others have posted saying KRBS are quick at transferring out.

Also their is confusion as to whether or not LloydsTSB backdate interest to when transfer cheque leaves old provider. I agree LloydsTSB 6.5% Fix is worth consideration by O/P brother if ISA holding is 9000.00 +

More than one person has posted saying LloydsTSB 6.5% ISA is going to be withdrawn soon.

http://forums.moneysavingexpert.com/showthread.html?t=844697

Sapphire

I've transferred my ISAs from Kent Reliance to the two-year Nationwide Fixed Rate Bond at 6.15%. I bank with them and find them reliable – and I don't think they will continue with this rate indefinitely.

bristolleedsfan

Sapphire wrote: »

I've transferred my ISAs from Kent Reliance to the two-year Nationwide Fixed Rate Bond at 6.15%. I bank with them and find them reliable –

How long did it take for Nationwide to open your Fixed Rate ISA out of interest after KRBS sent them the funds ?

Took them three weeks in my case. _pale_

Next transfer in was sent to Nationwide on 18th/19th March, not heard a word from Nationwide despite its 5 day account opening promise and previously informing me that they were committed to giving a good service.

They backdate interest meatandtwoveg so dont let their account opening delays put u off, like i said earlier depends how quickly a provider contacts KRBS so KRBS cant be regarded as being slow if it takes a week or longer for them to be contacted.

Cant see anybody in here using the word "reliable", all I see is red faces. :eek:

http://forums.moneysavingexpert.com/showthread.html?t=823221

I complained through Internet Banking about not receiving the minimum of confirmation of safe receipt of the transfer cheques within 5 days and reply was a suggestion that I phone Swindon to check on progress. :eek:

I told Nationwide that I dont phone at my expense. :beer:

Nationwide BS and ISA transfers dont seem to mix. :idea:

http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=423189&in_page_id=7

http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=424694&in_page_id=7

http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=425696&in_page_id=7

http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=429825&in_page_id=7

meatandtwoveg

bristolleedsfan wrote: »

How long did it take for Nationwide to open your Fixed Rate ISA out of interest after KRBS sent them the funds ?

Took them three weeks in my case. _pale_

Next transfer in was sent to Nationwide on 18th/19th March, not heard a word from Nationwide despite its 5 day account opening promise.

Thanks BLF,

I like the sound of the Nationwide, seem pretty safe, three weeks is along time though, its about time the BACS process was introduced.

Its just a 0.39% interest rate gain, is not worth a three week interest loss, i think he has about 30 odd thousand in there aswell?

Cheers.

bristolleedsfan

meatandtwoveg wrote: »

Thanks BLF,

I like the sound of the Nationwide, seem pretty safe, three weeks is along time though, its about time the BACS process was introduced.

Its just a 0.39% interest rate gain, is not worth a three week interest loss, i think he has about 30 odd thousand in there aswell?

Cheers.

No loss of interest as Nationwide fully backdate interest to date of transfer cheque, rate difference will be more if Base Rates decrease.

meatandtwoveg

bristolleedsfan wrote: »

No loss of interest as Nationwide fully backdate interest to date of transfer cheque, rate difference will be more if Base Rates decrease.

Ahhh, many appologies, i see now, i will get onto him, thanks for the heads up.

So its a win win situation i suppose, a better rate, which is fixed, with the biggest society (safe), and no loss of interest during transfer, great stuff.

Thats the easy bit, does he just have to go into the local Nationwide branch, we both have Flex accounts with the Nationwide, so already bank with them, so to open the Nationwide ISA, fill in the form, then the staff at the Nationwide do the rest? Or can you do it online?

Cheers BLF, great stuff.

P.S. The Nationwide ISA Fixed Rate Bond monthly interest option, can it be paid into the ISA, so you see the amount being paid every month, but it remains within the tax free ISA wrapper?

bristolleedsfan

meatandtwoveg wrote: »

So its a win win situation i suppose, a better rate, which is fixed, with the biggest society (safe), and no loss of interest during transfer, great stuff.

Thats the easy bit, does he just have to go into the local Nationwide branch, we both have Flex accounts with the Nationwide, so already bank with them, so to open the Nationwide ISA, fill in the form, then the staff at the Nationwide do the rest? Or can you do it online?

Cheers BLF, great stuff.

P.S. The Nationwide ISA Fixed Rate Bond monthly interest option, can it be paid into the ISA, so you see the amount being paid every month, but it remains within the tax free ISA wrapper?

Monthly interest option re adding to account is not something I have knowledge on so cant comment. ( being as additions to Fixed Rate account are not allowed Id be suprised if monthly interest can be added to the account )

Yep u need a Application form from a branch or posted to u on request and a transfer in form available from branches, posted to u on request.

http://www.nationwide.co.uk/search/DisplayArticle.aspx?article=1028

http://www.nationwide.co.uk/search/DisplayArticle.aspx?article=1425


Yep win win situation as long as u get in while rate remains 6.15%.

meatandtwoveg

bristolleedsfan wrote: »

Monthly interest option re adding to account is not something I have knowledge on so cant comment. ( being as additions to Fixed Rate account are not allowed Id be suprised if monthly interest can be added to the account )

Yep u need a Application form from a branch or posted to u on request and a transfer in form available from branches, posted to u on request.

http://www.nationwide.co.uk/search/DisplayArticle.aspx?article=1028

http://www.nationwide.co.uk/search/DisplayArticle.aspx?article=1425


Yep win win situation as long as u get in while rate remains 6.15%.

Hey BLF,

Thanks again for you help today, you a real decent bloke, are you a full time adviser, or just retired, with loads of savings? Anyway, you know your stuff, i would ask Martin for a wage.

Do you think if we go into the branch tommorrow afternoon, we will be able to get one of these accounts with the Nationwide, i might open one aswell, seem a good deal. The one thing that worries me though is my brother has just by BACS sent £3600.00 to the KRB/S for this years tax allowance what a donkey hey, i told him to wait, now it will only be in there for a couple of days?

Cheers again BLF.

P.S. Answered my own question.

Interest payments

With a Fixed Rate ISA Bond, you can choose to have your interest paid annually or monthly and:

• Paid into your current account, or
• Paid into any of our savings accounts, or
• Added directly to your bond if annual interest is chosen

So not added to your bond on a monthly basis. So best paid annually to maximise your roll over for monies under your tax free ISA wrapper.