Nationwide Fixed Rate ISA Bond ready to mature

akh43

I received a letter yesterday from Nationwide informing me my fixed rate ISA bond is due to mature on 7 march and asking did I want to reinvest it. Letter dated 6 February! Letter enclosed with it apolosing for the delay and offering to give the rates at the time the letter should have gone out as long as I respond by 16 March.

They are offering 3.50% fixed for 3 years is this a good offer?

Milarky

Nope! 3.50% for one year is very different proposition to three years. Basically we are at the 'bottom' of the rates available for savers. In 12 months times things could be very different - let alone in 24 months (e.g. you may want to spend some of these savings in the interim)

In general therefore: one year fixes 'good', two year(or more) fixes 'bad'

[JMO]

john1950

I am in the same situation and if you have been offerred 3 years fixed at 3.5% you should also have been offerred 2 years fixed at 3.3% as well as the 1 year fixed at 3%.

I have accepted the 2 year fixed which on balance feels about right for the current circumstances. The amount involved is a combination of converted TESSA's and ISA contributions up to 2007.

It is very difficult to know what to do for the best at the moment. Knowing what other people are doing is helpful

Milarky

Here's one you could go with

http://www.firstdirect.com/savings/cash-eisa-overview.shtml

http://www.firstdirect.com/legals/isa.shtml

This accepts transfers and operates just like an 'instant access' (i.e. further deposits, transfers-in or out and withdrawals) throughout the fixed rate period... ..the best of both worlds..

bristolleedsfan

akh43 wrote: »

I received a letter yesterday from Nationwide informing me my fixed rate ISA bond is due to mature on 7 march and asking did I want to reinvest it. Letter dated 6 February! Letter enclosed with it apolosing for the delay and offering to give the rates at the time the letter should have gone out as long as I respond by 16 March.

quote]


I received a letter today dated January as my fixed rate ISA bond was due to :rotfl: /has matured on 27th February, again apologising for the delay in sending the letter:rotfl: so the delay wasnt a one off. "dependable" Nationwide BS.:eek: Only good thing is Nationwide managed to transfer that ISA out in under 4 weeks. :j

mary

I have had a similar letter by the sound of it. Mine is due to mature on April 9th. I haven't yet looked into where to move the money to, but do I have to wait until the 9th April? Secondly, I can't see any possible option on the form they sent or reference to the possibility that you can transfer your ISA to another institution. Can anyone clarify please?

Baldur

mary wrote: »

....but do I have to wait until the 9th April?

I normally complete my chosen new provider's transfer form a few weeks before the maturity date, instructing that the transfer should take place on the date of maturity of the former fixed rate ISA.

Secondly, I can't see any possible option on the form they sent or reference to the possibility that you can transfer your ISA to another institution. Can anyone clarify please?

Check your Terms & Conditions.

funguy

I too received a letter asking what to do on maturity on 10th April 2009.....
There is a section about adding extra funds to the new isa.....if i attach a cheque for £3600 - i assume that will be for next year as i have already done this years quota....

any advice?

Baldur

funguy wrote: »

I too received a letter asking what to do on maturity on 10th April 2009.....
There is a section about adding extra funds to the new isa.....if i attach a cheque for £3600 - i assume that will be for next year as i have already done this years quota....

Yes - it would have to be next year's funds anyway, as it would be subscribed in the 2009/10 tax year.

any advice?

About what?

funguy

thanks for the confirmation - i thought that.

Any advice about whether going for the 3% for a fixed one year bond is the thing to go for in this climate? alternative is 3% for 2years or transferring to another provider?

Baldur

funguy wrote: »

thanks for the confirmation - i thought that.

Any advice about whether going for the 3% for a fixed one year bond is the thing to go for in this climate? alternative is 3% for 2years or transferring to another provider?

Personal choice - I wouldn't be looking at fixing for more than a year personally.

The other one year fixes currently available are fairly similar rates to NW, maybe up to 3.2% - is it worth transferring, unless you think that a variable rate ISA is wise in the current climate?