natwest isa 7.32%

Jumping_Bean

Is it just me or has picking an ISA become really complicated?

The last few posts have got me thinking... Should I be worried about Natwest going under?

If we take the ISA's from Kazza's post that allow instant access and transfers in:

1) Natwest - Should I be worried about this bank?
2) RBS - Same as above, should I be worried about this bank?
3) Post Office - Can't be operated over the net
4) A&L - 6% Rate includes a 1% bonus but not even for a year!?
5) Icesave - No comment
6) Abbey - This actually doesn't look too bad compared to the others although hardly an Earth shattering rate
7) Birmingham Midshires - Some bizarre guarantee to beat ING's rate?
8) Principality - Same as Abbey this, doesn't look to bad compared to the others but again, not exactly a great rate

There's hardly a stand out winner, just some that don't look as bad as the others. Is Principality or Abbey any safer than Natwest?

MiserlyMartin

Canny_mal wrote: »

It really bothers me when I see comments like this.

Now am I not right in thinking that just this week the goverment increased the amount of savings that are safe if a bank was to go under to £50,000?

And because of when ISA's were first introduced and the fact you can only add a certain amount to them each year it is not possible for anyone to have more than £50,000 in a cash ISA so surely there is no risk???

Also as Natwest add interest monthly if they were to go under surely the very worst that would happen is you would loose at most 1 months interest?

Or am I missing something???

You are missing something. Before ISA's there were Tessa's which could be converted to Tessa Only ISA's. They could be transferred into an ISA. If one has transferred a 9k TESSA + accrued interest and fully subscribed to the maximum ISA allowance in every tax year they will be well above 50k by now quite easily.

Also we all know we are protected up to 50K but if you had a choice between moving money from your account or having to test out the efficiency of the FSCS would you really risk it? Some people like having access to their money, icesave customers may not be able to get their money back for a few months. It is also worrying having to deal with all tthat hassle.

This is why people are moving their savings. It makes sense.

Jumping_Bean

MiserlyMartin wrote: »

This is why people are moving their savings. It makes sense.

Moving them to where though?

frembrit

frembrit wrote: »

Just went in to the High Street branch in Bath with my completed form, told them that I had an account with them that had gone dormant, they found it and reactivated it, checked the forms and all was done in 15 mins. I'm happy with that. Just got to try and deposit the whole years allowance in 6 months now.

Well, it was too good to be true.
They passed the form to someone at another local branch to process and they rang me yesterday to say that I need to fill in some more forms. appointment booked for tomorrow, lets see what they want!

Barter

Baldur wrote: »

Yes, as of 6th April this year, there is no such thing as a TOISA (TESSA Only ISA) - they all became Cash ISAs under the 2008-2009 ISA rules.

Just been in to open a NatWest ISA; transferring from Nationwide, where I have an ISA & an ex- Tessa ISA. The NatWest adviser was adamant that I couldn't transfer the latter in AND get the bonus - she said it would only be eligible for the 4.something% rate, i.e. without the bonus.

Has she done me a favour, or is she misinformed?

(She seemed to know they can be treated as cash ISAs, so it wasn't that she didn't know of that change.)

Baldur

Barter wrote: »

Just been in to open a NatWest ISA; transferring from Nationwide, where I have an ISA & an ex- Tessa ISA. The NatWest adviser was adamant that I couldn't transfer the latter in AND get the bonus - she said it would only be eligible for the 4.something% rate, i.e. without the bonus.

Has she done me a favour, or is she misinformed?

(She seemed to know they can be treated as cash ISAs, so it wasn't that she didn't know of that change.)

Not only can they be treated as Cash ISAs, they ARE Cash ISAs and have been since 6th April 2008:

Mini cash ISAs, TESSA-only ISAs (TOISAs) and the cash component of a maxi ISA will automatically become cash ISAs.

Barter

Thanks for the link - maybe I can convince her with that!

Baldur

Barter wrote: »

maybe I can convince her with that!

If not, I suggest that you ask to speak to her supervisor.

fitzal

Hi, does anyone know if the interest rate cut will lower the Natwest ISA interest rate? Will it be 0.5% lower than advertised?
Thanks.

Baldur

fitzal wrote: »

Hi, does anyone know if the interest rate cut will lower the Natwest ISA interest rate? Will it be 0.5% lower than advertised?

Highly likely, as it's a variable rate product.