NatWest won't allow Icesave ISA transfers to their eISA account!

EileenH

I have my Icesave money in a Tesco internet saver account and now want to transfer it to NatWest's eISA before the end of the tax year to get the best rate of interest of 3.51%. NatWest will only allow Icesave customers to transfer their ISA money to their cash ISA which only gives 2% interest. If I was transferring my money from another provider then I could transfer it to the eISA and earn 3.51% interest. It doesn't seem fair that Icesave customers are being penalised in this way. Anyone else experienced this?

Stingy_Samson

Hi Eileen,

I hope this isnt the case. I am in a similar position to you with 10K actually sat in my Natwest current account. I had already opened the standard Cash ISA with Natwest back in November, but decided to not bother transerring the funds from Icesave into it. So on Friday last week (after setting up an e-ISA online), filled in the transfer request form at the branch (they took a photocopy of my IceSave ISA redemption form and stapled it to the application).

I added the instructions that the 10K balance sat in my current account should now be transferred into the newly opened e-ISA. (I asked them to cancel and close the standard Cash ISA i opened but without subscribing to).

The girl seemed working there seemed to think it would be ok (she checked with her supervisor in the back), and the application was then sent off Friday afternoon.

I'm not expecting to hear anything for at least a week, but i will tell you what they tell me when anything happens.

EileenH

Stingy Samson, I have had some problems with NatWest since I opened a cash ISA with them before I received my Icesave money. By the time I received the transfer certificate they had pulled the bonus rate and they wouldn't honour the bonus so it wasn't worth moving my money as I was still getting a better rate with Tesco after it had been taxed. I called in at my local NatWest last week with the transfer form, certificate and cheque but the member of staff had to call head office for advice and they said I couldn't transfer my Icesave money to the eISA, only the cash ISA. I hope it works out for you.

Stingy_Samson

Sounds like your branch know different to mine then. (Pretty sure the Blackpool branch just guessed amongst themselves to be honest). It wouldnt surprise me if i found out on the 5th April that i couldnt do it, and then end up losing my ISA status.
i have to say ive never had any problems with natwest, but that view could change drastically over the next 3 weeks!! Hmmm. I'll let you know either way.

EileenH

I've just rung NatWest through the 0800 200 400 number for general product information on their website and told them that I tried to transfer my Icesave ISA money to their eISA in branch and wasn't able to and wanted to know why not. The person I spoke to told me that I could transfer my Icesave money to the eISA but I would have to go into my local branch and get them to close the empty cash ISA first and if I had any problems to get the branch member of staff to ring the number I quoted above. I will try again later this week to transfer my ISA and hopefully have more luck this time.

Stingy_Samson

Hi Eileen,

Good news!!!! My ISA funds have appeared in my e-ISA today!! So basically after going into the branch on Friday afternoon, cancelling the empty Cash ISA i had setup and completing the transfer form to put the funds into the e-ISA, 4 working days later it has appeared in the account.

So hopefully everything will be ok for you next week.

EileenH

Stingy Samson that was super quick but as your money was already sitting in a NatWest account that would have helped speed things up. Mine will no doubt take much longer as I will be giving them a cheque drawn on another bank. I just hope the process is completed before the end of the tax year. At least I know from your experience that Icesave money can be transferred to an eISA so thanks for letting me know.

Stingy_Samson

I wouldn't have thought it would take too much longer for you. You can expect a good month delay if the funds were sat in another ISA, but as it is in an instant access saver, the cheque should take a matter of 3/4 days longer then mine perhaps.

PS - Not sure if it will correct itself in a few days but my "remaining subscriptions allowed for 2008/09" has been set at £3,600 (even though i subscribed £300 in the IceSave ISA back in July.) I was expecting £3,300 to appear remaining. Maybe worthwhile trying my luck to see if they notice the extra deposits before April eh!!

Good luck.

EileenH

Called in at local NatWest after work today and spoke to same lady as before. She still didn't think I could transfer to the eISA but after she rang the number I gave her she now said that I could but she still wasn't convinced because of the conflicting information she had received. She read notes on her system on how to handle Icesave transfers and said that I didn't have to send a cheque with transfer form and certificate but could transfer the funds from my other bank account to the nominated account that I had already opened with the 1st cash ISA and then the money would be transferred from there to the new eISA. She closed the empty ISA, took a certified copy of my Icesave certificate and kept my transfer form. Before she can send them off she needs the new eISA account number to put on the transfer form. I told her I would open the account online this evening and she would check if the account number was showing tomorrow and send form off. I applied for account this evening but hit a snag when I had to say what the initial deposit would be for this tax year. I tried to enter full amount of my ISA transfer but it wasn't accepted, probably because it was over the £3600 annual limit. In the end I had to show £1 deposit before it would let me proceed with application as a nil amount wasn't accepted either. As I have already subscribed the full £3600 into the Icesave ISA this tax year I don't know how this will work but as I ticked the box to say that I would pay the £1 deposit in cash it should be ok as the balance is still going to be nil. I will have to call in at the branch again tomorrow and ask them about that and see if the account has been set up yet. This Icesave transfer has been a long-winded process that is not yet over!

Deru

I went into a Natwest branch didn't see anything about the eISA. Only their ISA Plus @ 3.51% advertised. Was told I couldn't transfer to the ISA plus so ended up transferring my Icesave money to their standard ISA. Only getting 1%.

From 6th April, I'm to open an ISA Plus and then start contributing to that. I've protected the tax free status of the money but feel there's probably better options now. Guy also told me that they'd eventually merge the standard ISA with the ISA Plus at the end of the year once it the Plus one loses the 'Plus'.

Anyone been told this? Have I been given the short end of the stick?

Thinking about it, I can actually transfer out next tax year from this standard ISA. Is that the best thing to do?

Kavanne

Stingy_Samson wrote: »

I wouldn't have thought it would take too much longer for you. You can expect a good month delay if the funds were sat in another ISA, but as it is in an instant access saver, the cheque should take a matter of 3/4 days longer then mine perhaps.

PS - Not sure if it will correct itself in a few days but my "remaining subscriptions allowed for 2008/09" has been set at £3,600 (even though i subscribed £300 in the IceSave ISA back in July.) I was expecting £3,300 to appear remaining. Maybe worthwhile trying my luck to see if they notice the extra deposits before April eh!!

Good luck.

You won't see £3300 appear as you can only deposit money into ONE cash ISA in each tax year, so really you shouldn't make any subscriptions until after 6th April. Sorry

Deru wrote: »

I went into a Natwest branch didn't see anything about the eISA. Only their ISA Plus @ 3.51% advertised. Was told I couldn't transfer to the ISA plus so ended up transferring my Icesave money to their standard ISA. Only getting 1%.

From 6th April, I'm to open an ISA Plus and then start contributing to that. I've protected the tax free status of the money but feel there's probably better options now. Guy also told me that they'd eventually merge the standard ISA with the ISA Plus at the end of the year once it the Plus one loses the 'Plus'.

Anyone been told this? Have I been given the short end of the stick?

Thinking about it, I can actually transfer out next tax year from this standard ISA. Is that the best thing to do?

The e-ISA isn't advertised in the branch as it is an internet account. You can transfer from a natwest Cash ISA into an internet e-ISA if you want. You don't need to wait til the next tax year to do that, I have transferred my ISA twice this year.