Transfer Cash ISAs Discussion Area

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Former_MSE_Dan
Former_MSE_Dan Posts: 1,593 Forumite
Combo Breaker First Post
edited 14 June 2010 at 4:44PM in ISAs & tax-free savings
This thread is specifically to discuss the the
Transferring Cash ISAs to up the interest

article

Former MSE team member
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Comments

  • diggingdaddy
    diggingdaddy Posts: 14 Forumite
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    Just like to point out a problem with your Icesave's top paying ISA. Looks like the interest has to be drawn iether monthly or yearly, so if this being the case anyone transfering a large ISA and having to draw the interest and not being allowed to compound would mean the yearly ISA allowance plus compounded interest would be drastically reduced!
    :money:
  • Yogi1309Cat
    Yogi1309Cat Posts: 2 Newbie
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    I'd like to point out another problem with transferring to Icesave's top paying ISA.
    You can only transfer current ISA's from the following companies - NatWest, Halifax, HSBC, LloydsTSB, Barclays or Nationwide.
    If your ISA isn't with one of these companies you can forget it!
    They also have to be variable rate ISA's or the same applies.
    We have ISA's with Bradford & Bingley so we can't take advantage of this offer. Are there any other Banks out there we can transfer these to for a higher rate of interest?
  • freakshadow4
    freakshadow4 Posts: 16 Forumite
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    Hiya, can anyone tells me what happens to your interest when you transfer out of an account? My ISA currently only pays the interest at the end of the financial year, would this be recalculated and paid out as part of the transfer?

    Can I just check that you can transfer out this financial year, or should I wait until April and just do it next year?

    Thanks,
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    First Anniversary Combo Breaker First Post Mortgage-free Glee!
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    Yogi1309Cat wrote: »
    I'd like to point out another problem with transferring to Icesave's top paying ISA.
    You can only transfer current ISA's from the following companies - NatWest, Halifax, HSBC, LloydsTSB, Barclays or Nationwide.
    If your ISA isn't with one of these companies you can forget it!

    I think this is only in respect of them paying you the £1000 if the interest rate is not better.

    If you click on 'your questions answered' on the left side of the main page then look across to the section headed Opening an easy Access ISA there is a question as follows

    Do you accept transfers in from other providers into the Easy Access ISA?

    and the answer -

    Yes you can transfer in Mini Cash ISAs held with other providers into the Icesave Easy Access ISA. You can choose to make a transfer in as part of your application or, once your account is open, simply log in and select the option to make a transfer-in to your Easy Access ISA.
    Transfers in from other providers do not count towards your annual subscription limit. There is no restriction to the number of providers you can transfer-in from.


    From the above I take it that any other ISA providers count.
  • luv_my_brass
    luv_my_brass Posts: 247 Forumite
    First Anniversary Combo Breaker
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    I had the feeling that I had to keep my current isa's until the end of the tax year to qualify for a whole year's interest. But looking at my pass book, it says interest is added 30th November. I want to transfer them from Northern Rock to Icesave (I also have a savings acc. with Icesave) and have noted the tips on the best way of doing this. But just to clarify, should I send the passbook to NR for them to update the interest and am I correct in thinking that I can transfer now without losing any interest?
    if i had known then what i know now
  • tallutd
    tallutd Posts: 3 Newbie
    First Anniversary Combo Breaker
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    I have a Platinum Plus ISA from CIS. I pay in £30 a month but just found out it is only paying interest of 2.5%. I rang them today and they said I could not transfer it only cash it in. Is this right?:confused:
  • alastair_h
    alastair_h Posts: 548 Forumite
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    diggingdaddy wrote: »
    Just like to point out a problem with your Icesave's top paying ISA. Looks like the interest has to be drawn iether monthly or yearly, so if this being the case anyone transfering a large ISA and having to draw the interest and not being allowed to compound would mean the yearly ISA allowance plus compounded interest would be drastically reduced!
    :money:

    Hi,

    That's not how I read it or set my Icesave account as, my understanding is the compounded interest can be paid back into your Icesave ISA OR a separate account. Therefore if you selected pay into Icesave ISA (this account) option your compounded interest would be normal (you don't have to withdraw this interest).

    PS - you also have the option to have 6.1% AER per annum or 5.94% monthly which I think compounds up to 6.1044% over the year, every little helps!

    Hope this helps.
    "Every Pounds A Prisoner "
    "Loyalty to the Best Interest Rate"
    :beer:
  • alastair_h
    alastair_h Posts: 548 Forumite
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    freakshadow4 wrote: »
    Hiya, can anyone tells me what happens to your interest when you transfer out of an account? My ISA currently only pays the interest at the end of the financial year, would this be recalculated and paid out as part of the transfer?

    Can I just check that you can transfer out this financial year, or should I wait until April and just do it next year?

    Thanks,

    Hi,

    Yes if you request a transfer as soon as possible they will re-calculate the interest to that date and make the transfer. If you have an ISA where you have to give notice or loose interest you may have to make that date 30 or 90 days ahead (for example).

    Providing there are no penalty clauses you can transfer out when you like, and if you're going to a better rate - the quicker the better in my opinion. This is what I have been doing for the last two years to make the most of my savings.

    Hope this helps. PS remember to transfer correctly not withdraw the funds.
    "Every Pounds A Prisoner "
    "Loyalty to the Best Interest Rate"
    :beer:
  • alastair_h
    alastair_h Posts: 548 Forumite
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    luv_my_brass wrote: »
    I had the feeling that I had to keep my current isa's until the end of the tax year to qualify for a whole year's interest. But looking at my pass book, it says interest is added 30th November. I want to transfer them from Northern Rock to Icesave (I also have a savings acc. with Icesave) and have noted the tips on the best way of doing this. But just to clarify, should I send the passbook to NR for them to update the interest and am I correct in thinking that I can transfer now without losing any interest?

    Hi,

    If you complete the Icesave form and return it to Icesave after completing the on-line application form (it gives you a reference number to put onto the paperwork). Then they will request the transfer from NR, who will calculate the interest to date and transfer funds to Icesave. Ice write to you with account number etc and it shows up below you Instant Access account.

    My move from Yorshire BS was very quick - all complete in 15/16 days!
    "Every Pounds A Prisoner "
    "Loyalty to the Best Interest Rate"
    :beer:
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    I have just been looking into transfering my ISA from the Halifax to Icesave but I can only find information about fixed rate ISA Saver account charges.

    I quote "
    Although it's best to leave a fixed rate Halifax ISA Saver open until the end of the fixed term, you can close your account or transfer out to another ISA Manager. However, you will lose an amount equal to 180 days' interest, calculated on the rate at which interest is paid on your account."

    Any ideas? Or has anyone else transfered from Halifax?

    Jon
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