New National Savings 'Direct' (Online) ISA @ 5.05% (AER)

jenniferpa

I opened an ISA for my mother (on her instructions) and got an email indicating they would be sending a form to sign. Does anyone know if they will wait for this before starting the ISA, or will it be backdated? I can't seem to get onto online banking at the moment to check if they've taken the money. I'm assuming that this is in part because she recently moved, or does everyone get this form?

Jennifer

david78

Hi Jennifer,

We are all getting a form to sign and return, don't worry (nothing to do with your Mum's move).

I was told verbally, as I applied on the 'phone, you got an email as you (your Mum) applied on-line.

Interest will be back-dated to the time the payment is taken.

Mr_Mumble

david78 wrote:

Opened account 7.00 am on 6th (Thursday). Still don't know if my £3000 been taken. On Friday, it looked like £3000 was being debited because my "available funds" was £3000 short of what I could work out looking at my online statement. It is often out of sync like this.

Saturday morning and the "available funds" went back up by £3000 -- could just be because its the weekend. I will look tomorrow to see what is pending, and if it is not going out, I will ring them up and complain.

Same thing has happened with my account. Think this is standard procedure for any debit card transaction? The available balance is reduced when the account is checked for cleared funds but this doesn't mean the funds will be debited immediately?

codetown wrote:

Not sure why all the fuss on this ISA.

As the blurb says: Guaranteed to stay 0.55% above the base rate until at least 5 April 2008. A very long guarantee for a very high rate (relative to the base rate of course).

What happened to the top-rated ISA of 12 months ago, the Abbey Postal ISA? Many were piling into the Abbey account to get 5.35%, .60% above base rate, before the issue was withdrawn on May 1st. In early August it was announced this Abbey rate was to be reduced to .40% above base rate. Still a good rate but many who went for this top-rated account felt as if Abbey had pulled a fast one on 'em. A .55% above base rate guarantee for 24 months is impressive based on how quickly accounts at the top of the interest tables come and go.

codetown wrote:

Thinghs might change later in the year or next year,

With A&L its likely to be this year and I'd wager on the summer months now they're withdrawing the issue to new subscribers, like the Abbey postal ISA before it. Don't want to sound too cynical about A&L; they provide great rates of interest for those willing to play them at their own game.

david78

Mr_Mumble wrote:

Same thing has happened with my account. Think this is standard procedure for any debit card transaction? The available balance is reduced when the account is checked for cleared funds but this doesn't mean the funds will be debited immediately?

Thanks. I'm trying not to worry. My main concern has been that I couldn't get the payment to be authorised on line and had to call them up. They said they would call me at work if there was a problem -- well they didn't call so hopefully all is well. Hoping, it will show as debited tomorrow.

My guess is that anyone going for the A&L account, will get less interest over the 12 months compared to the NS&I one. I may be wrong. Of course they can always transfer again to stay ahead of the game.

david78

Two things happened today.

(1) £3000 has gone from my current account.
(2) I got the letter to sign and return from NS&I.

sloughflint

david78 wrote:

Two things happened today.

(1) £3000 has gone from my current account.
(2) I got the letter to sign and return from NS&I.

So when will it start earning interest?

bluesnice

I applied for this one online last night paying 3K with my debit card. I've recieved an email today saying they'll post a confirmation form and that I may need to supply my ID details. No money has left my current account yet! I'll keep you posted.

david78

I asked when I opened the account on the 6th, and the lady said it would be open and earning interest as soon as my first deposit is made. I deposited £3000 on the 6th and it left my account on the 10th, so I guess I will earn interest from the 10th.

emphatiC_hanK

I wonder if there's anything to stop you transferring previous year's ISAs into the standard NS&I ISA account, and then open up a direct ISA with £3000 for this year and then transfer in the remainder?

It seems a stupid rule not to allow other transfers in (for those like me who would prefer to keep all their ISA money together) but this might be a way around it?

:A emphatiC_hanK :A

sloughflint

I wouldn't like to risk it and then losing more days interest transferring it elsewhere again.