Natwest bonus rates on ISAs

Colin100 · 20 April 2009 at 3:18PM

I switched to a Natwest ISA in Oct 2008 to access their bonus rate of 2%. My understanding of the deal they were offering at the time was that the quoted rate of 6.7% was fixed for one year, rather than the bonus of 2% only being fixed. Anybody else similarly switch on this apparently mistaken basis?

Baldur · 20 April 2009 at 3:46PM

Quite a number of people, if you read through the many other posts on the subject on these forums, e.g. this 24 page thread - http://forums.moneysavingexpert.com/showthread.html?t=1168679

All of which demonstrates that you need to read the specific product's Terms & Conditions, rather than relying on an institution's marketing 'blurb'.

ozzage · 21 April 2009 at 9:16AM

This will probably make me unpopular, but I did the switch at the same time and to be honest I thought it was fairly clear as to what was fixed and what wasn't. I don't remember exactly what was stated on the website but at no time did I think the whole rate was fixed.

dupedlms · 21 April 2009 at 3:09PM

I have just found out exactly the same I was also under the impression that the interest rate of 7.32 was fixed for a year and even mentioned this at the Nat West bank when I filled in the form with the Bank Manager and I was not told any different, worst still I also took along my very elderly neighbour to transfer her her ISA and even she said that she was very happy to received 7.32% guaranteed until September 2009 and neither of us were corrected and we were with the Bank Manager - who I have just blasted and am going to report her to the ombudsman for misleading us this was at Nat west Rawtenstall

Milarky · 21 April 2009 at 3:42PM

Oh dear! It is the customer's responsibility to read the terms of any account they open (that is what they are for!) So just how 'deeply' did NatWest hide the fact it was a bonus rate attached to a existing variable-rate product?

Not very deeply as this link from the #3 reply of that very long thread makes clear

New NatWest cash ISA

Customers wishing to transfer their cash ISA to NatWest will receive a bonus of 2% for 12 months. The following rates are offered on the total balance in the account:
TierGross %
Exc BonusAER % (variable)
Exc BonusGross %
Inc BonusAER %
Inc Bonus£27,000+5.13%5.25%7.13%7.32%£18,000 - £26,9994.98%5.10%6.98%7.16%£9,000 - £17,9997.40%4.80%6.70%6.87%£1 - £8,9994.51%4.60%6.51%6.67%

dupedlms · 21 April 2009 at 3:49PM

Attention to all savers who transferred into Nat West top ISA deal in September /October 2008 - you were duped they are only guaranteeing the bonus of 2% for a year not the 7.32% as advertised. I have just been into the bank today because I have heard absolutlely nothing from them since September 2008 only to be advised that my Isa is only earning 2.6% INCLUDING THE 2% BONUS, therefore without the bonus they would only be paying interest of 0.6% and in order to qualify for the 2% you have to keep your money there for the whole year. I wuill be transferring mine as soon as I find somewhere else to tranfer it too. ANY HELP OUT THERE?
dupedlms

willo65 · 21 April 2009 at 5:53PM

dupedlms wrote: »

Attention to all savers who transferred into Nat West top ISA deal in September /October 2008 - you were duped they are only guaranteeing the bonus of 2% for a year not the 7.32% as advertised. I have just been into the bank today because I have heard absolutlely nothing from them since September 2008 only to be advised that my Isa is only earning 2.6% INCLUDING THE 2% BONUS, therefore without the bonus they would only be paying interest of 0.6% and in order to qualify for the 2% you have to keep your money there for the whole year. I wuill be transferring mine as soon as I find somewhere else to tranfer it too. ANY HELP OUT THERE?
dupedlms

I think there is a bit of a misunderstanding on your part, as mentioned in previous posts above the 2% is fixed and the rate is variable I'm sure the rate was clear in leaflets etc etc.

2.6% if you have less than £9k but could be upto 4.0% if over £27k - The bonus interest is paid along with your monthly interest and you can withdraw the money at any time. The Natwest E-Isa is paying 3.25% for under £10k you could transfer there.

Milarky · 21 April 2009 at 6:38PM

and in order to qualify for the 2% you have to keep your money there for the whole year

Completely untrue! The bonus is added to the variable interest rate and the combined amount is paid out monthly, so you pocket the full rate up to the point of withdrawal - and nothing happens if you do.

...if you just can't be bothered to read the terms of the account, make it up, eh?

Sid_Harper · 22 April 2009 at 4:35PM

I also only expected it to be a 2% bonus for a year on top of their variable rate. Now, a different question, anyone know if I transfer in my Barclays one which has dropped its bonus now will earn the same rate as the rest of my cash or if it'll just be the variable element?

apt · 22 April 2009 at 8:01PM

You also get the 2% bonus on any money you transfer in and this year's allowance if you want to put it there. But the bonus will expire this autumn.

Natwest bonus rates on ISAs

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