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

EileenH

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?

If you look on the NatWest website you will see the eISA, it's an internet based account so you probably wouldn't see it advertised in branch. If I were you I would ask in branch if you can transfer your money to the eISA. The eISA allows transfers in but the ISA Plus doesn't. If you open a Cash ISA Plus in the new tax year you still won't be able to transfer your previous years money into it so go for the eISA now and ditch the one paying 1%

Stingy_Samson

Hi all,

just as an update, the transfer has been completed now and my remaining deposits allowed before 6th April are now reading £3,300. On the ISA certificate it actually says how much i deposited and thus leaving the £3,300 still to add THIS tax year if i so wish. I got clarification from Natwest and they agree that this is the case.

Kavanne

Stingy_Samson wrote: »

Hi all,

just as an update, the transfer has been completed now and my remaining deposits allowed before 6th April are now reading £3,300. On the ISA certificate it actually says how much i deposited and thus leaving the £3,300 still to add THIS tax year if i so wish. I got clarification from Natwest and they agree that this is the case.

From: http://www.natwest.com/personal/savings/g2/isas/cash-isa.ashx#tabs=section2

I have paid £700 of my current tax year allowance into a Cash ISA with another provider. Can I open another Cash ISA with NatWest and pay in the remaining £2,900?

No, due to Cash ISA Regulations you cannot have more than one Cash ISA in a tax year.
However, you can pay the remaining £2,900 of your allowance into your existing Cash ISA with the other provider and then transfer it over to us.

Baldur

Kavanne wrote: »

From: http://www.natwest.com/personal/savings/g2/isas/cash-isa.ashx#tabs=section2

The Icesave funds constitute a transfer - the HMRC Guidelines permit additional subscriptions post-transfer (effectively this is the same ISA, merely a new provider) so the quote which you posted from the NatWest site is irrelevant.

Deru

Kavanne wrote: »

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.

What if I made a deposit along with the transfer at the time?

So next step is to transfer from Natwest ISA to e-ISA. How do I do that? How long does that take? Should I wait till 6th April or after? I've still got some money to put into this year's contributions.

Oddly enough, the guy at Natwest's idea is for me to have the normal ISA and then open the ISA Plus in April. Then I end up with 2 ISAs with them, first one only paying 1%, then the other paying 3.51% for my contributions for next year's contributions. He said they'd eventually get merged but it still means I'd be getting only 1% up till then.

Thanks.

Baldur

Deru wrote: »

Should I wait till 6th April and after? I've still got some contributions to make.

If you wait until after 5th April, you will have lost the ability to subscribe any balance of your 2008/9 tax year allowance - you will only have the 2009/10 allowance of £3,600.

Kavanne

Since transfers don't count towards your allowance it doesn't matter when you make them.

EileenH

Stingy_Samson wrote: »

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).

How long did it take for you to get your account number for the e-ISA after setting it up online? My local NatWest won't send my transfer form off until they know my new e-ISA account number and from what I can gather I must wait for the application to be posted to me for signing and returning before the account can be opened. I applied online last Thursday evening and I have been advised that it can take up to 10 working days for the account to be opened then I will have to wait again for the transfer to be processed so I hope my Icesave money can be transferred before the end of the tax year. This could have all been sorted out by now if I had been allowed to open the e-ISA when I first tried to.

Stingy_Samson

Hi Eileen,

I dont think it took that long for it appear as one of my online accounts. I would say it took no more then 3 days (cant honestly remember but i know it wasnt long).

EileenH

Stingy_Samson wrote: »

Hi Eileen,

I dont think it took that long for it appear as one of my online accounts. I would say it took no more then 3 days (cant honestly remember but i know it wasnt long).

I received the paperwork in the post today so I will return it tomorrow and hopefully the account will be open by the end of this week and the transfer shouldn't take much longer as my money is now sitting in my NatWest nominated account waiting to be transferred to the new ISA. Thanks for your help Stingy Samson, it is appreciated.