Natwest ISA transfer - interest during transfer?

NumbersGuy_2

Does anyone know if Natwest provides interest on money in transit (e.g. Halifax provides interest from the day after the transfer leaves your old ISA). I am considering whether it's worth switching if there is a delay between the funds leaving the old ISA and starting to earn interest in the new one.

Baldur

You will probably find the answer in the 16 page Natwest ISA thread on the ISA board http://forums.moneysavingexpert.com/showthread.html?t=1168679

mar7t1n

I transferred an ISA balance from The Coventry Building Society to Natwest. It took 24 days from the date that The Coventry closed the account and confirmed in writing that they'd sent the balance before Natwest put the money into my account. Even then they took a further couple of days to clear the funds and make them available. If you've got £40k which if you've be adding your limit every year is now quite possible that's approx £200 in lost interest. But T&C's allow them to do it as they say it could take 30 days. Now I know it could take up to 30 days to do all the paperwork and get one side to agree to send the money to the other but it should not take 24 days to transfer the cash from one to the other.

What are my rights to complain?

masonic

The fact that ISA transfers are permitted to take up to 30 days does not excuse the fact that Natwest appear to have taken the best part of a month to deposit your cheque. Have you tried complaining to them about it?

In answer to the OP's question Natwest pays interest from the second working day after the transfer is credited to your account. Going on what has been said in the thread posted above, people seem to have typically lost 7-10 days interest, which is equivalent to taking up to 0.2% off the rate for the first year.

mar7t1n

In fact it's more like a 0.61% drop. As the advertised rate of 7.32% ends up being 6.71% if your out of interest for 30 days.

I am going to complain.

david9180

A similar thing happened to me. The Abbey closed my account on the 29 Oct 08 and the money was received by Natwest on around 6 Nov 08, and they only started paying interest from 11 Nov 08. I went in to check this as I had been told by two members of staff when I arranged the transfer that I would not lose any interest. The assistant checked with the manager and they worked out on the spot how much interest I was owing from 30 Oct 08 and added it to my account. She said they were aware of the problem and other people had been in to complain as well, and there operations department were looking into it.

Colin100

I took up this offer on the basis that the rate was fixed for one year (6.7%) not just the bonus of 2%. Did anybody else believe that the Natwest sales literature indicated that the full interest rate was fixed?

masonic

Colin100 wrote: »

I took up this offer on the basis that the rate was fixed for one year (6.7%) not just the bonus of 2%. Did anybody else believe that the Natwest sales literature indicated that the full interest rate was fixed?

I think the literature itself was very clear about this. The only way anyone could have been misled is if they were told something different by an advisor when they opened the account.

withnell

masonic wrote: »

I think the literature itself was very clear about this. The only way anyone could have been misled is if they were told something different by an advisor when they opened the account.

Even then it's their word against yours - I was misadvised by Britannia about an interest rate promise on an account and they refuse to honour it as I have nothing in writing and signed the terms and conditions (which do not contradict what i was told, but do not support the explaination as given either)