Matured ISA Transfer Interest

ThirdTimer · 13 February 2019 at 11:43AM

Hi there,

I have a cash ISA with the Post Office. The ISA had a 12 month bonus saving rate, which has now passed/matured, and the rate has reverted back to 0.5%.

Obviously, I would like to transfer the money to another cash-ISA with a better interest rate, but the interest is only paid out mid march. Does that mean I have to wait until the earned interest is paid before I can transfer?

Many thanks,

Pete

eskbanker · 13 February 2019 at 1:39PM

No need to wait, you can transfer whenever you're ready, interest earned up to the date of transfer will be added on a pro rata basis.

ThirdTimer · 15 February 2019 at 10:16AM

Thanks for reply. Another question though: How and where would the interest be paid if I transfer the ISA now, but the interest payout isn't until March?

eskbanker · 15 February 2019 at 11:11AM

ThirdTimer wrote: »

Thanks for reply. Another question though: How and where would the interest be paid if I transfer the ISA now, but the interest payout isn't until March?

It'll be added immediately prior to the transfer, so that the amount transferred will include the interest, thereby zeroing the account for closure.

ThirdTimer · 15 February 2019 at 1:50PM

Thank you for your help eskbanker. Much appreciated!

Matured ISA Transfer Interest

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