How long should a transfer take?

In some cases, the delays have lasted for months with no guarantees of getting the more attractive rate which motivated savers to switch.

Viewer Ray Knight wrote to Working Lunch: "I asked Halifax if I can transfer previous years ISA funds from another provider to one of theirs at their better quoted rate. They said I could but wouldn't guarantee the rate at completion because of the time taken with the transfer. Who'd risk that the rate could be anything they decide!"

"60 days"

Mr Groom added: "Nationwide have told me that if they change the rate before the transaction is completed, the new rate will apply."

However, some viewers are being told that it is "allowed" for the transfer of the money to take longer than 30 days.

"I spoke to Abbey about my ISA transfer from West Bromwich Building Society to them. They said both parties had 30 days under Inland Revenue guidelines to process the transfer, ie. 60 days in total," viewer Malcolm Hughes said.

Plus Alfred from Lancashire wrote to the programme: "I have been told by the Bradford & Bingley that the HMRC are very happy for them to take eight weeks to transfer my account."

No limit

The ISA transfer rules state that the time limit for the transfer should occur on the instructions of the investor and it should not exceed 30 days.

However, the time limit of 30 days only starts from when the manager holding your original account receives the paperwork from the new provider.

Customers wanting to switch normally approach the new provider who actually has no time limit to get in touch with the old one.

Honour rate?

When delays occur, savers' chances to get the rate they were chasing, will depend entirely on their new provider.

Lloyds TSB and Halifax told Working that they would honour the interest rate at the time of setting up ISA account.

This is particularly important when savers are trying to reach a fixed rate offer on an ISA.

However, Nationwide will only give customers the rate that is current when a new customer's balance reaches them.

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