isa bond with nationwide

McKneff

i save just a small amount each month with Nationwide just really in case they demutualise. I also have an isa bond of about £5k.
if they do convert to a bank is the amount of the total of money invested or
is it just the savings. i am thinking of moving my isa bond to a better rate with ~Abbey but wont if it is counted. i had heard that it isnt counted and it would only be on the small savings account, but does any one know for sure.
Thanks in advance

Hungerdunger

When did you open your accounts? If it was after 2 November 1997, you will have already signed away your proceeds to charity.

LittleVoice

An ISA bond with Nationwide is a savings account. In fact a Flex current account is also a membership account.

The question about when you opened the accounts should really be "when did you open your first account with Nationwide (even if it is now closed) which is in an unbroken chain of membership to the present?" It is membership which counts, not individual accounts as such.

Even if your membership does not go back far enough to have avoided the sign-away clause, it does not mean that that clause would actually apply if the Board wanted to recommend demutulisation - because in that case they would want as many For votes as possible and could "buy" them in a lot of cases from people who have holdings for that reason.

McKneff

definitely opened the account before 1997 so would i be better just leaving the isa bond there and not transfer it to my abbey cash isa

LittleVoice

Personally I would ensure that I maintained my membership in some way. You could do this with whatever savings account you have - as long as you have £100 in there.

Regarding the ISA account, if you can find another provider who will accept transfers in and offer a better rate then I would arrange the transfer. After all, you can transfer into Nationwide ISA so should be able to transfer back if that would be advantageous. (Though there are some reports of delays in Nationwide processing of transfers at the moment.)

McKneff

hi little voice, i probably didnt explain properly, what i wondered was
that if the nationwide demutualises what would be counted
when Halifax demutualised the more savings you had the more shares you were given.
so would i be given shares of just the small account (ie £150)or would
the small account be added to the isa bond ie £150 plus £5k

Farway

I do not think anyone can really answer your question, it would depend on the Nationwide board at the time, plus in current financial turmoil it is very unlikely Nationwide will demutulise for years, if ever

opinions4u

Farway wrote: »

I do not think anyone can really answer your question, it would depend on the Nationwide board at the time, plus in current financial turmoil it is very unlikely Nationwide will demutulise for years, if ever

And if they did, the value would probably be about two thirds less than you'd have got 15 months ago.

They'd be a fabulous takeover target for other banks (if the other banks weren't all on their knees at the moment!).

Milarky

I have 20+ years membership of Nationwide but have only quite recently opened an account (with at least £100) to standalone from the other accounts I hold with them. This ensures no 'slip up' on my part as my Flexaccount in particular is very busy but I certainly don't keep £100 in there at most times.

So I opted for an E-bond (for £250, but £100 would have been sufficient) paying monthly interest into the Flexaccount. It's one of the easiest accounts open online - it pays their best rate of interest - and they will roll it over (I think) at maturity to a new bond unless you instruct them otherwise - giving you a permanent holding

Milarky

opinions4u wrote: »

And if they did, the value would probably be about two thirds less than you'd have got 15 months ago.

They'd be a fabulous takeover target for other banks (if the other banks weren't all on their knees at the moment!).

Takeover is the same thing as DM and still requires membership approval of 75 percent. The value of any windfall is also reduced by the extra 8 million or so members added since 1997 (technically excluded from windfalls by the 'signaway', but then they've all got votes too) compared to the 5 million or so eligible to a share back in 1998.

In 1998 a likely figure of '£1500' (which sounds about right) was mentioned. Well. that £1500 plus any increase in the value of the company (where it has increased in scale) since then (maybe 50%?) would have to be multplied by about 5/13...say about '£800' today?

Ross01

Personally I dont think that the Nationwide will ever demutalise. The reason they all wanted to demutalise was to have easier access to the money markets and a greater ability to borrow money from other banks. We only have to look at Northern Rock, Bradford and Bingley, and Alliance and Leicester to see how that has turned out.

Nationwide are also too big to be taken over by another society.

Also there are too many members who joined after 97 who have nothing to gain from Nationwide becoming a bank, but everything to lose to vote if it become a bank. If will not happen.

Its your decision. Personally I would keep my money with Nationwide. I have been very well treated by Nationwide, the customer service I have found to be very good, and for 1% or what ever it is would not go to the trouble of moving my money.