Nationwide Members Isa bond

loulou41

I went to Nationwide to transfer my members isa bond to another provider. I was told I need to give 60 days notice or lose 60 days interest. I am getting 1.4% now with NW and YBS is paying 3.25%. I wonder whether I will be better off to go ahead with the transfer now and lose the 60 days interest or is it better to give 60 days notice and wait to see whether there will better rates in the future? Has anybody done a nationwide isa bond transfer before without any hassle? Thanks

Milarky

There is no 60 days notice/loss of interest on transfers. merely 'withdrawals' to a non ISA account. Who told you this? - because it does not reflect Nationwide's practice with this particular account.

So, yes, you can go ahead and transfer to YBS without delay

loulou41

CS at Nationwide actually gave me a form to fill & sign and put 60 days notice on the form. The form says notice of withdrawal/closure. I did tell her it is a transfer. Are you sure there is no 60 days notice as I have been told there is in my local branch? Confused now!! Thanks

Milarky

loulou41 wrote: »

CS at Nationwide actually gave me a form to fill & sign and put 60 days notice on the form. The form says notice of withdrawal/closure. I did tell her it is a transfer. Are you sure there is no 60 days notice as I have been told there is in my local branch? Confused now!! Thanks

I've personally done transfers twice from my MR account - no notice/interest penalty. My Mum had the same account and has also twice transferred without notice/penalty.

(What you could do, of course, is amend the 'additional instructions' to something like: Please transfer without penalty A.S.A.P - then if Nationwide moves the account 'early' they can't charge you a penalty. If they wait 60 days and you lose interest as a result (eg differential rate x number of days) you can complain about that. Hopefully the ISA transfer team will just go ahead and do an early transfer anyway. The fact that branch-staff are unaware of this little 'loophole' is not that surprising. They don't deal with them every day so just take what the account literature (for customers) says in 'good faith'.

JaySL

Hi !

I too am interested to find out for sure re the 60days notice period. I thought I have to give the 60days notice in order to transfer out to another ISA. The customer service didn't say anything different when I went in to do so. In fact, I am now waiting come March to see what ISA to transfer it to.
Please help.Thanks in advance

JaySL

loulou41

Thanks, I am going to the branch and asked CS to find out. This is what it says:-

" No part withdrawals can be made during the life of a bond, except where the product conditions specifically allow it. An example of this is Members' ISA Bond, which allows one withdrawal per tax year subject to 60 days' notice or loss of interest."

My husband did give Northern Rock 30 days notice when he transfer his isa. will check it out again and let you know.

Careful_ly

Milarky is correct. There is no 60 day notice period on transfers.
I was also told by my local branch that 60 days notice was required, I actually gave the notice, and it was only 3 months plus later when the transfer still had not been done that I was told I shouldn't have given notice.
The notice is required on withdrawals not transfers.

Lansdowne

Usual advice is to fill in the transfer form provided by the new ISA (YBS in this case) not the old one. I'm sure you could still write 'transfer without penalty' on the form just on case.

loulou41

With YBS, you have to fill a form, the top one to send to them and the bottom one to the old provider. Interested to know if I do lose 60 days interest, how will it be calculate,d at 1.45% or all interests for the isa year will be added on transfer and then 60 days will be deducted. I still think I will be better off even I lose 60 days interest rates if it is calculated at 1.45%. I will be getting 3% with YBS. My concern is I will be reaching the max 50k with YBS as I have been transferring my money from NW to them. I have to open another account with Norwich & Peterborough to transfer some money with them to be on the safe side. This is quite a hassle for me regarding log in with account number and password etc as I am gettinig on a bit. Thanks

Milarky

loulou41 wrote: »

My concern is I will be reaching the max 50k with YBS as I have been transferring my money from NW to them. I have to open another account with Norwich & Peterborough to transfer some money with them to be on the safe side. This is quite a hassle for me regarding log in with account number and password etc as I am getting on a bit. Thanks

The 50k protection should never be called on in practice (i.e. assume that a 'small' institution like YBS gets into trouble - it is still small enough to be bailed by the Nationwide - or part nationalised) Did investors with over £50K with Bradford and Bingley lose out? No. So although I can't guarantee you'd get all your money back regardless, It must still be a virtual certainty that you would be (And YBS isn't in trouble is it?)

loulou41

JayLS, I can confirm there is no need to give 60 days notice to transfer Nationwide Isa Bond. This was confirmed for me by the Isa department.