natwest isa 7.32%

anna42hmr

still waiting for my money to transfer in from marks and spencers god knows how much longer i will have to wait

mar7t1n

It took 24 days from the time my old provider (The Coventry Building Society) confirmed in writing that they had closed my account and transferred the balance before it showed in my Natwest ISA account. So that's 24 days lost interest. On £40k that's about £200. No wonder they can offer such good rates, effectivly you've got to factor in that your money could go missing for 30 days without interest. So is it still worth moving? Well yes it was but annoyed that they've had my money.

Has anyone had any luck getting the interest back dated.

As for the difference in rates the AER is the amount you'd get if you had the money in there for exactly 365 days. The Gross rate is the daily amount they pay and as interest is paid monthly this is a different percentage. Monthly interest is a big advantage in these uncertain times as credited interest is guranteed by the savings protection scheme. But interest earned by not credited may be a bit harder to get your hands on in a bank collapse.

Milarky

mar7t1n wrote: »

It took 24 days from the time my old provider (The Coventry Building Society) confirmed in writing that they had closed my account and transferred the balance before it showed in my Natwest ISA account. So that's 24 days lost interest. On £40k that's about £200. No wonder they can offer such good rates, effectivly you've got to factor in that your money could go missing for 30 days without interest. So is it still worth moving? Well yes it was but annoyed that they've had my money.

First off, have you had the (reduced) interest yet to comfirm this and allow you to and quantify your exact loss? Then ask who is liable? Is it sender - because they benefit from the delay in cashing their cheque - or is the receiver - for asking for payment in a way that resulted in delay and caused you loss? 'Terms of Service' can't surely include a provision like "If we send a cheque because you ask us to and its not cashed it's not our fault and we won't pay interest on it [although we obtain a benefit when this happen]" and expect that to be upheld?

I would start by asking NatWest for the 'lost' interest (i.e. at the lower rate paid by the old provider -since the delay has extended the bonus period (etc) ) assuming they say 'go away' start to query their reason: When did the postman really find the cheque in his satchell and deliver it to them? How long after this did they key it in? - Did they have in-office procedures for waiting 'a' day - so as to benefit from the weekend in the clearing of the cheque? See what happens. Also, there are now these new BBA guidelines (see my post) which make it is the responsibility of NatWest to 'chase up' with Coventry three weeks ('14' days) after they first wrote to them - which would be considerable less than 24 days after Coventry sent the cheque. NatWest may not have chased up - because they were 'busy' and the guidelines are recent - but this does appear to raise itself as a point at which you can test their applicability. (Trojan horse to FOS complaint on subject of tranmission delays)

HTH

lisyloo

Is everyone sure you definitely lose interest?
I thought my man at the NatWest said it aplpied from the transfer date, but I'd need to check.

Has anyone actually checked? or are people making assumptions about what happens here?
If you haven't checked then how do you know? as no interest would have been applied yet.

Milarky

lisyloo wrote: »

Has anyone actually checked? or are people making assumptions about what happens here?

If you haven't checked then how do you know? as no interest would have been applied yet.

Interest was paid to the end of the month (on 31 October) so anyone whose money arrived in October shouldn't have (too much) difficulty in backtracking the number of days it was paid for - and compare the 'credit' date with that

For example I received 13p for 100.32 'credited' on 22 Oct (but account closed on 16 Oct) It's a bit difficult when the amount is so small - rounding is significant. Anyway the rate (for this balance: 0-8999) was 6.51%

12.51p = £0.1251. Divide by '0.0651' = '1.92165' . Muliply by 365 = '701.4' . '701.4' divided by '100.32' = 6.99 days

13.49p = the above multiplied by [13.49/12.51] = 8.07 days

(So it has probably been paid for 7 days - as '6.99' is not a number of days - and 8 days has only about 8% probability)

But let's see. Paid on the last of the month - includes that date as a rule, so the earliest date interest was paid for was 25 October. However, as that was a Saturday they wouldn't start giving value to a cheque on that date. So 24 October now looks likely - i.e. two 'bank' days after the cheque was credited.

So it appears NatWest took 6 days to receive that cheque and paid interest from two days after that.

This thing about how long a cheque should take to be recieved: It should take ONE day in all cases. Many cheques sent second class are delivered in a single day - I suppose more aren't (but it costs your bank just 10p more to put 'first class' on the envelope.) I don't understand why, if they are trying to follow guidelines intended to speed up transfer times by the simplest means possible they don't just say 'cheques will be sent by first class post and put into the post in the morning'? Additionally - to save customer's further lost days they could simply post Monday only - making almost 100% likely that the cheque could be cleared 3 (or at most 4) real days later

But it suits the banks to post 5 days a week - so most customers are going to lose a minimum of 5 (and more often) 6 days interest.

miele_2

Ainsdale wrote: »

miele - I do feel lucky after reading about your experience. I suppose the question is which institution is causing the delay? I suggest that you ring Abbey tomorrow and ask them whether they have received the transfer request from Nat West and if so on what date. If they have had the request more than a week I would remind them of Abbeys ISA terms and condition Para 17 which I have reproduced below (with my underlining)
"
17 Transferring out
17.1 You may ask us, at any time, to transfer all or part of your ISA to another ISA Manager approved under the ISA Regulations. You cannot partially transfer your Choices ISA. If you are transferring from a Choices ISA, paragraph 9 also applies. If you are transferring from a Super ISA, Direct ISA, Easy ISA, a Postal ISA or a Variable Rate TOISA, we will normally process your request within five Business Days of receipt, however you may request a date after this period if you wish. "

I know that "normally" is not legally binding, but I am pretty sure that it must be some form of target they aim to achieve or why put it in the T&C's in the first place.

I can see that baldur and nuthatch have answered your two questions and I agree with their answers.

Hope this is helpful and that Nat West gets your account opened soon.

Ainsdale, Great info and advice, thanks.

I can't believe my bad luck..... :sad:

33 days later and my transfer still hasn't happened. Natwest sent out a letter to Abbey on 8th Oct but after telephoning Abbey many times to check and recheck the situation, (by both myself and the girl at Natwest), Abbey said they have not received the form at all. :mad:

Who's to blame? Who's fault is it? Natwest seem to have done their part, (opened account, sent out transfer request to Abbey). Is it Abbey's fault for possibly losing this letter? Or has it simply gone missing in the post on the way from Natwest to Abbey? Do banks use Royal Mail?

Can anyone give some me help and advice please? It's be much appreciated. I really want to complain to someone and get some kind of compensation but don't know who I should complain to!

Today, Natwest have resent the transfer form to Abbey, (2nd request), but this could take another 30 days to process. How annoying!!!!!! :eek:

I guess the only positive thing is that my money's still in my Abbey ISA so I know that hasn't disappeared! But, the Natwest ISA rate has gone down already!

riad_2

Just noticed that Natwest's 2% bonus ISA has been withdrawn and replaced with a 12m 1.76% bonus.

I see that the basic rates (excluding bonus) have also dropped too, meaning top tier for us who applied to transfer prior to now and getting the 2% bonus is now 6.86% AER (down from the 7.32% previously).

http://www.natwest.com/personal/savings/g2/isas/cash-isa.ashx?DCMP=ILC-PersHPCashISABnr#tabs=section4

trinidadone

riad wrote: »

Just noticed that Natwest's 2% bonus ISA has been withdrawn and replaced with a 12m 1.76% bonus.

I see that the basic rates (excluding bonus) have also dropped too, meaning top tier for us who applied to transfer prior to now and getting the 2% bonus is now 6.86% AER (down from the 7.32% previously).

http://www.natwest.com/personal/savings/g2/isas/cash-isa.ashx?DCMP=ILC-PersHPCashISABnr#tabs=section4

my application for transferring was in last month, but my second transferr wont happon till next month, i wonder what rate i will be placed on?

Milarky

Lee_Dunford wrote: »

My application for transferring was in last month, but my second transfer won't happen till next month, I wonder what rate I will be placed on?

If you request it now (before 9th November) - or already have requested it - you would still be qualified for the bonus at 2%. Remember that the customer can stipulate conditions on the form NatWest will give them - including the provision that any required notice be served (as with a fixed term account coming up) You don't have to wait until the funds are available to transfer to start the process

Including 2% bonus For customers who applied to transfer from 18 September 2008 until 9 November 2008.

trinidadone

Milarky wrote: »

If you request it now (before 9th November) - or already have requested it - you would still be qualified for the bonus at 2%. Remember that the customer can stipulate conditions on the form NatWest will give them - including the provision that any required notice be served (as with a fixed term account coming up) You don't have to wait until the funds are available to transfer to start the process

cheers bro