Nationwide Member's ISA Bond warning.

bristolleedsfan

Lansdowne wrote: »

Next BoE interest rate decision is this Thursday isn't it?

Yip , expect minimum 0.5% reduction with 1% reduction the strong favourite.

intalex

Lansdowne wrote: »

Next BoE interest rate decision is this Thursday isn't it?

Yes it is, but I have a lumpsum coming through from my HSBC account (using BACS which I initiated on new year's day) which should hit my FlexAccount either tomorrow or Tuesday. It would be a disaster if they dropped the rate before my funds arrive.

Ulfar

Opened my latest set of bonds with Nationwide last week, fixed for 3 years.

I went with them even though they weren't the best rate because you can close the bond early and the penalty is 90 days of interest (which lets be honest isn't that much)m you get access to your funds within 28 days.

That way if mid 2009 interest rates shoot up I can close the bonds early and reinvest for a better return.

My only worry is that the government seem to be targeting Nationwide and other more prudent lenders.

Fortyfoot

johnoz wrote: »

Yes, I had to do it at our local branch. In fairness, it only took a few minutes ... just needed some ID such as driving licence.

Thanks for that johnoz, called in this morning and transfered the Members Isa Bond - 1.75%, to 2 year fixed at 4%. I was not going to get an isa this year, so I closed one paying 2.4% with the Skipton this afternoon, walked across the road and opened the three year one paying 4.25% fixed with Nationwide.

Great advice on this forum, thanks to all.

Fortyfoot

fullstop

Fortyfoot wrote: »

Thanks for that johnoz, called in this morning and transfered the Members Isa Bond - 1.75%, to 2 year fixed at 4%. I was not going to get an isa this year, so I closed one paying 2.4% with the Skipton this afternoon, walked across the road and opened the three year one paying 4.25% fixed with Nationwide.

Great advice on this forum, thanks to all.

Fortyfoot

Why did you close your ISA? I know 2.4% is not much to shout about , but you could have transfered to a different provider and kept the tax free status.

Fortyfoot

fullstop wrote: »

Why did you close your ISA? I know 2.4% is not much to shout about , but you could have transfered to a different provider and kept the tax free status.

It takes a while to transfer and Nationwide are not accepting them so I was told today.

I was not going to get an isa this year, so I closed one paying 2.4% with the Skipton this afternoon, walked across the road and opened the three year Isa paying 4.25% fixed with Nationwide.

I still have the tax free status but with higher interest.

Fortyfoot