ISAs from previous years

cadboll

There is a probably a very simple answer to these questions:
(i) If you have an ISA account from a previous year, is it easy to transfer it - just remembered I had one with the Nationwide - and want to transfer it to somewhere with a better rate.

(ii) Is it worth transferring between ISA accounts, i.e. two or three times a year - is there not a risk of losing out on potential interest? I know some providers charge a transfer fee.

Thanks.

Marcus_Tandy

I recently transfered an ISA and TOISA to HSBC - as a cheque is drawn and sent to the new provider you potentially lose interest for the period between the account/s being closed and the amount being deposited in your new account.

In my case, it took 7 days to appear on the new account so loss was approx. £10 in interest. This of course depends on the amount you are moving...

Hope this helps....

YorkshireBoy

Marcus_Tandy wrote:

I recently transfered an ISA and TOISA to HSBC - as a cheque is drawn and sent to the new provider you potentially lose interest for the period between the account/s being closed and the amount being deposited in your new account.

In my case, it took 7 days to appear on the new account so loss was approx. £10 in interest. This of course depends on the amount you are moving...

Hope this helps....

Not so with Halifax (and I assume many others?).

Check out their "transferring your ISA to Halifax in 3 simple steps" booklet where they guarantee to backdate your interest to the day after your current provider closes your account. I didn't lose any interest when I moved mine recently.

edda

cadboll wrote:

There is a probably a very simple answer to these questions:
(i) If you have an ISA account from a previous year, is it easy to transfer it - just remembered I had one with the Nationwide - and want to transfer it to somewhere with a better rate.

(ii) Is it worth transferring between ISA accounts, i.e. two or three times a year - is there not a risk of losing out on potential interest? I know some providers charge a transfer fee.

Thanks.

Suggest you familiarise yourself with the basic rules here:

http://forums.moneysavingexpert.com/showthread.html?t=35681

as the ease of transfer (in theory) is sometimes made difficult if the person you speak to in doing your transfer doesn't understand all the rules.

I have done 3 transfers in the last 6 months and found Lloyds TSB generally more efficient transferring out than in. Nationwide always back date your interest to the day they received the cheque. The Yorkshire B. Soc. opened my account on the day they processed the cheque - but after complaining, they backdated the interest for me.

Just check the Ts & Cs very carefully and good luck!