natwest isa 7.32%

Gazza_UK_3

But what if you don't want the interest paying into another account?

Baldur

Gazza_UK wrote: »

But what if you don't want the interest paying into another account?

It's not - it's paid into the ISA account - see here:

Interest paid monthly.
Bonus is for customers transferring in Cash ISA funds from another provider (excludes transfers within the RBS Group) and is calculated on the whole balance in the account for 12 months from receipt of the Cash ISA transfer request. Interest is paid tax free and is paid monthly to the account. The bonus interest will be paid monthly along with the standard interest payment.

runciblespoon

My adviser did ask whether I wanted the interest transferred somewhere else, but I said I wanted it in the ISA. So there may be other options (or there may be, but not on this product and she was confused)

Stroudley, if that was the case couldn't you open a NW current account and have it pay interest into that, then set up a standing order to pay it out?

Muhren... the bonus is only available to people transferring. But once you've transferred you can add cash to it and still get the bonus rate. So you could transfer your old and current ISAs now and pay in the balance later. Or you could pay in at your old provider up to the limit then transfer the lot across.

(as part of the transfer process, do institutions know how much was paid in in each tax year and how much interest has accumulated on it? Say if you paid in £2000 last year and £1000 this year, so you have £3000 plus maybe £100 interest. How does the receiving institution know that of your £3100 you can pay in another £2600 this year?)

Paul_Herring: overpayments was the reason I was told, and that 'the computer won't let us open one without another account' (which can be a savings or current account). I'm guessing another reason is more opportunity to do the cross-selling that banks so love (and everyone ignores).

ScratchandSniff-->[X]

Muhren wrote: »

Cheers for informing me of the bad news!
If I do transfer from A&L to natwest does that mean that A&L will close my isa so that I can't keep making payments into that isa?

You might want to check A&L penalty for transferring an ISA from them (depends how long you've had it I think).

E.g. in the User Guide for their Direct ISA (under Terms and Condtions) it's180 days penalty loss of interest:

"30.22 For a Fixed Rate Cash ISA You may request closure of Your Account by writing to Us, subject to 180 days loss of interest if closure is before the maturity date. If the Account has been opened for less than 180 days the amount of interest that would have been applied will be deducted from Your Subscription."

"30.24 For a Fixed Rate Cash ISA, withdrawals, transfers or closures are permitted from the Account. You can withdraw part of your money at any time, subject to a minimum deposit of £500 remaining, or withdraw it all. Early closure, part withdrawals and transferring out to another ISA will all be subject to 180 days loss of interest. If the Account has been open for less than 180 days the amount of interest that would have applied will be deducted from Your capital. There is immediate access on maturity without loss of interest as for variable rate ISAs."

Then there's the 30 days notice, 30 days to transfer....

lolly5648

I want to transfer ISAs from two different providers to Natwest. Do you think I have to fill in the 4-page form twice as you cant list them and would they then open two new ISAs or amalgamate them when the last transfer arrives?

Steve_xx

Paul_Herring wrote: »

I wouldn't have this would have been the reason, because overpayments are usually bounced back into the source account instead of being processed.

Natwest state this as the reason, on their website:

You will also need to hold or open an instant access account. We will use this account to hold your money if you accidentally put more than £3600 a year into your Cash ISA.

Steve_xx

ScratchandSniff-->[X] wrote: »

You might want to check A&L penalty for transferring an ISA from them (depends how long you've had it I think).

E.g. in the User Guide for their Direct ISA (under Terms and Condtions) it's180 days penalty loss of interest:

"30.22 For a Fixed Rate Cash ISA You may request closure of Your Account by writing to Us, subject to 180 days loss of interest if closure is before the maturity date. If the Account has been opened for less than 180 days the amount of interest that would have been applied will be deducted from Your Subscription."

"30.24 For a Fixed Rate Cash ISA, withdrawals, transfers or closures are permitted from the Account. You can withdraw part of your money at any time, subject to a minimum deposit of £500 remaining, or withdraw it all. Early closure, part withdrawals and transferring out to another ISA will all be subject to 180 days loss of interest. If the Account has been open for less than 180 days the amount of interest that would have applied will be deducted from Your capital. There is immediate access on maturity without loss of interest as for variable rate ISAs."

Then there's the 30 days notice, 30 days to transfer....

Direct ISA's with A&L and Fixed Rate ISA's are different products I think. I don't think there is a penalty for withdrawing from the Direct ISA?

granny_grunt

Hi, I wrote my story in the wrong place but it was very much like yours, my local branch knew about the new offer but had to go round the back to confer and then had to phone head office who confused them even more about the details.They insisted I had to open a special reserve account incase I over subscribed. I assured them I had already fully subscribed to this years isa and had no intention of paying in more. I left not doing anything as I felt I couldn't trust them. But now think I should have just opened the account and hopefully they would have managed to transfer my old isas. might just pop back tomorrow and try again.

runciblespoon

lolly5648 wrote: »

I want to transfer ISAs from two different providers to Natwest. Do you think I have to fill in the 4-page form twice as you cant list them and would they then open two new ISAs or amalgamate them when the last transfer arrives?

Yes, that's what I did. I was told they'd go into one ISA and I'll be shouting if they aren't I imagine the two forms is so they can keep track of the two exchanges of letters with your old providers. Oddly there's no space on the form to fill in the number of your existing ISA (eg the one they've just opened for you on the computer) which makes me a little worried they'll separate them.

riad_2

Would this still work if we open the normal ISA account online (with nil balance), and then hand in the ISA transfer forms at the branch (2 for 2 ISA transfers?).

Or is it safest to let the branch open the ISA on their computer, and leave the transfer forms with them to take care of?