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How much is it worth switching for?
dizzie
Posts: 390 Forumite
Regarding ISAs, I have read on some providers websites that it can take up to 30 days for funds to be transferred from previous providers.
My question is this: What time period is there between your account being closed at one provider and the funds arriving into the new account? And will the new interest rate more than make up for the time your funds spend "in transit" earning no interest whatsoever? Am I right in thinking that there is no point switching for say a 0.25% rate difference if my balance is going to be floating around in the ether between the two providers for more than a fortnight? Or does this just not happen.
Thanks
My question is this: What time period is there between your account being closed at one provider and the funds arriving into the new account? And will the new interest rate more than make up for the time your funds spend "in transit" earning no interest whatsoever? Am I right in thinking that there is no point switching for say a 0.25% rate difference if my balance is going to be floating around in the ether between the two providers for more than a fortnight? Or does this just not happen.
Thanks
0
Comments
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new rate / (new rate - old rate) = x
Where x = number of days required to break even for every day lost in the post.
Example: Moving from 6.00% to 6.25%
6.25 / (6.25 - 6.00) = 25 days
Assume 5 days lost = 125 days to recover losses.0 -
I recommend switching savings accounts and ISAs once they fall more than 0.5% behind the market leading rate.Had £80,000 in Savings - All GONE!!! BYE BYE:A Single, 27, Aspie, Gooner :A0
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