Q. on Natwest/RBS 2% ISA transfer bonus

ExBanker_2

Just to clarify- i work for Natwest and the 2% bonus IS only paid on the transferred balance, not on any additional balance you add once transferred!

jamesd

ExBanker, then NatWest is in for a FOS judgment against it if it's allowed to go that far.

The documentary evidence is extremely clear that consumers can expect it on the full balance and not only on the transferred money:

"The 2% bonus will be available on your NatWest Cash ISA as soon as we receive the ISA transfer form (link to form) and will remain until the twelve month anniversary of the receipt of the transferred ISA funds" - what money can that interest be paid on if not money not transferred?

"We apply the bonus from the date we receive your Cash ISA transfer form. However, the 12 month period starts when we receive the funds from your old Cash ISA provider. So you could get our bonus rate for longer than 12 months" - how do you get it for longer, if it only applies to the transferred funds that haven't been received yet?

"You can withdraw your money or close your account at any time. We’ll simply pay interest on the daily cleared balance" - no provisions for deciding whether the withdrawn money is from transferred, existing or new subscription funds.

"Bonus offer and interest rate" section:

"How do I qualify for the bonus? Simply transfer 1 or more existing cash ISAs from 1 or more other provider(s). Transfers within the RBS Group are not eligible for the bonus. If you transfer your Cash ISA to us, the total balance in your NatWest Cash ISA qualifies for the bonus" - explicit total balance, not something like "transferred balances" that would indicate segregated funds with different rates.

I assume that you're describing the intent or understanding of someone at NatWest, but that's clearly not how this offer is being described to consumers.

ExBanker_2

I'm not defending natwest, merely answering the original posters question. In our weekly DOFT this exact issue came up. That is why i know 100% that the bonus rate is NOT earnt on additional funds added to the ISA after the transfer! Its a sneaky con, i know!

Similarly, on their 2% e-savings bonus, the bonus rate on that only kicks in on the last day on the month following the month the account was opened! Very sneak considering the rate will have dropped by that time!

LittleVoice

ExBanker wrote: »

I'm not defending natwest, merely answering the original posters question. In our weekly DOFT this exact issue came up. That is why i know 100% that the bonus rate is NOT earnt on additional funds added to the ISA after the transfer! Its a sneaky con, i know!

Similarly, on their 2% e-savings bonus, the bonus rate on that only kicks in on the last day on the month following the month the account was opened! Very sneak considering the rate will have dropped by that time!

Could you explain to someone who is not a NatWest staffer what DOFT signifies?

Is your 100% belief based on something officially written or another member of staff simply stating their understanding?

YorkshireBoy

I'm happy that both jamesd and I have interpreted the T&C's/FAQ correctly. However, in an attempt to 'strengthen' my understanding I've just sent some feedback via their website...

Dear Sirs,

I'm about to transfer my previous years' ISA to the NatWest Cash ISA paying a 2% bonus for the first 12 months.

As I've not yet subscribed to a cash ISA for the 2008/09 tax year, please could you confirm that...

1. Any additional monies deposited in the NatWest Cash ISA between now and 5th April, ie my 2008/09 allowance, will also earn the 2% bonus, and also

2. Any monies deposited between 6th April 2009 and the 12 month anniversary date, ie my 2009/10 allowance, will also earn the 2% bonus until the anniversary date.

Kind regards
XXXXXX XXXXXXX

I'll post the reply in due course.

gull5426

i have transferred into nat west and hope it does what it says... we had to open another account with natwest too but wont use it and now we get loads of post from nat west.. which will go in to the recyling bin.

YorkshireBoy

YorkshireBoy wrote: »

I'll post the reply in due course.

Here it is...

Dear Mr XXXXXXXXX

Thank you for your response. Apologies that the first reply did not assist.

I have called the Savings and Investments helpline who have confirmed that you will receive the bonus on the transfer plus any additional monies deposited within the 2008/09 tax year.

They have also confirmed that you will continue to receive the bonus for the remainder of the 12 months after the 6th of April 2009 on the total deposited (including any monies deposited for the 2009/10 allowance).

Should you wish to discuss matters further, you can call the Savings and Investments helpline directly on freephone 0800 255 200. Lines are open Monday to Friday, 8am - 8pm and Saturdays 9am - 6pm.

We hope this helps.

Yours sincerely

X XXXXXXXXX

E-Messaging Team

oldfella

thats good news YB - I know where my 2009-10 ISA is going ! Presumably that also implies that if new ISA deposits moves you into a new level, you get the increased bonus on the lot ?