why do some banks not allow transfers in?

evosy1978

Hy

just wanted to know why some banks do not allow transfers in? This sounds soft to me as surely this will put some people off opening an account with them, therefore resulting in the bank loosing lots of money of potential new customers with old big isa account. - or am i missing something!

Also as you are only allowed to deposit £3600 per year, are you allowed to open more than one isa per year?

thanks

BruceyBonus

They offer higher interest rate on new money than transfers (as you can only have £3,600 compared to almost £30,000 on a transfer).

You can only subscribe to one Cash ISA per year.

evosy1978

so am i right in thinking that the banks that dont except money in will loose alot of customers. I mean some banks except transfers in with interests rates just as good as those that dont.

Baldur

evosy1978 wrote: »

so am i right in thinking that the banks that dont except money in will loose alot of customers. I mean some banks except transfers in with interests rates just as good as those that dont.

You'd probably find that the likes of Barclays (as an example) will offer a high rate for new money each year, allowing the rate on the previous year's ISA offering to drop significantly, with no possibility of those previous ISA funds being transferred into the new, higher rate one.

They probably rely on the inertia of those customers (I suspect that there are many) who trust the 'big name bank', who don't check the rate on their old ISA or who are unaware that they can transfer elsewhere, to retain those funds at a relatively cheap rate.