transferring ISAs

skyepark

Why o why do I do it:? Apparently I was told by alliance and Leicester that each bank has up to 30days to do their job as part of transferring an ISA. Thats 60 days loss unless banks back date the interest. Which ISA's do backdate? Is it worth transferring an ISA how much higher does an interest rate have to be in order to make a profit?

nrsql

You should get interest on the source ISA until it's transferred I think.
That means that it might take 30 days (or more - the limit doesn't seem to be enforced) but you should still get interest during that time.
As to the destination - might take 30 days to set up the ISA but that hopefully isn't after they receive th money. I would expect it to happen before they request and the money goes straight in.

I rcently did a transfer Yorkshire - Icesave It took a couple of weeks and the money went into the Icesave ISA a few days after the Yorkshire one was closed.
I'm doing the asme from Bradford & Bingley but it seems to be taking a bit longer.

caveat_emptor

You should get interest by your former provider up to day the funds are transferred and then by your current provider as soon as they receive the funds. So although the transaction might take 60 days to finalise you should only lose a few days interest.
For me transferring has been a disaster with LloydsTSB unable to trace my funds although they were sent by my former provider.

fmoney

I am also waiting for and ISA transfer to Alliance and Leicester. Tonight, they told me as you said they have up to 30 days to process the transfer. But I will start earning interest from the day they received the cheque. No wonder it takes so long.
This was news to me. I thought the whole process should take a maximum of 30 days.

I started my transfer from Icesave on the 1st April. Icesave took until 9th may to transfer the money and now I'm just waiting for alliance to pull their finger out. Apparently there's a huge backlog.

All in all a !!!! experience and I can't access my money for 2 months. What century are we living in?

fmoney

Found this

http://news.bbc.co.uk/1/hi/programmes/working_lunch/7355256.stm