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

Stompa

I was pleasantly surprised to find that they didn't ask for any proof of identity.

Stompa

isasmurf

emphatiC_hanK wrote:

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?

No, I've looked at this before, and you can only transfer money that was in a standard NS&I ISA up to 5/4/06.

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?

It seems quite sensible if you ask me. They want you to open an ISA with them so they offer a market leading rate. But as we have seen with other market elading ISAs over the past few years, everybody piles in with all their existing ISAs. This leads to expensive administration costs in transfering the ISA into the account and as you could have in excess of £33k in an ISA it would be unbelieveably expensive to pay 5.05% interest on that amount of money.

emphatiC_hanK

I'm not sure if I follow that logic - if they're happy to pay me interest on £3,000 in an account why not £30,000 (if you had that much.)

From a purely financial standpoint, it's not really any different from having ten different people with £3,000 each, is it?

I think that rules should be in place with ISAs to prevent institutions getting to the top of the best paying account lists by using 'tricks' like this (and also the short term bonuses.) It would be a much more level playing field if the rate quoted was just that, and didn't manipulate the consumer, as seems to happen far too often at present.

:A emphatiC_hanK :A

Mikeyorks

emphatiC_hanK wrote:

I'm not sure if I follow that logic - if they're happy to pay me interest on £3,000 in an account why not £30,000 (if you had that much.)

Not a million miles away from why Halifax pay 7% on a Reg Saver - but only let you deposit £250 monthly?

From a purely financial standpoint, it's not really any different from having ten different people with £3,000 each, is it?

It's the difference between 1 customer - and 10 customers. And each may shop elsewhere in the store?

I think that rules should be in place with ISAs to prevent institutions getting to the top of the best paying account lists by using 'tricks' like this (and also the short term bonuses.) It would be a much more level playing field if the rate quoted was just that, and didn't manipulate the consumer, as seems to happen far too often at present.

Welcome to the world! And for ISAs read Current accounts / Savings accounts / Credit Cards / Loans et al things financial (and otherwise) It is the major raison d'etre of MSE - to alert us all to the 'tricks'. And give advice on how to stay ahead of a constantly shifting 'playing field'?

john_travolta

Evening All, my first post so please be gentle!

I have a question similar to sloughflints about having previous ISAs and opening one this year with NS&I "Direct".

I have for the previous 2 years had an ISA with First Direct, I know I should have moved it last year when their rate dropped, oh well.

I would like to open another one this year and the NS&I offering looks good and you cant get much safer than with them. However what can i do with the previous years ISAs still with FD since i cant transfer it into the NS&I direct ISA? Am I allowed to open another ISA with someone else who offers a better rate than FD and transfer previous monies across? or is this not allowed and I would have to wait til next April?

Thanks in advance!

John

david78

Hi John and welcome to the boards.

You can certainly open and NS&I ISA for this year. You can either keep your previous year's ISAs where they are (First Direct), or open a cash ISA with someone else and transfer to them.

You don't need to wait to next April.

Don't worry about "opening a second ISA" - provided its only to take a transfer from another ISA its fine.

john_travolta

Thanks david78

Just gonna go open my NS&I direct and look round for the next best to move my FD ones into.

John

Mr_Mumble

The online banking for this account is fun, and by fun I mean slooooow (1), woefully designed (2) and contradictory (3).

1. I got a "404 page not found" error and session timing out message because a page wouldn't load the first time I logged in! Second time was okay, just very sluggish.

2. The accounts page states "balance" when it means the "available balance". This'll give many a heart palpatation since it takes 14 days for a debit card deposit to become available. So, a balance of £0.00 is likely to be the first thing a direct isa customer sees the first time they log-in! The more meaningful "current balance" can be found by clicking on the directisa link, which takes you to the account history...

3. The "opening balance" in accounts history shows "£0.00" for me. This contradicts the letter confirming the account opening which showed the "opening balance" inclusive of my initial deposit. A deposit for the initial sum is shown the same day as opening so it is probably just another administrative foible but it doesn't inspire confidence.

Can't wait to deposit more funds via this system. :eek:

john_travolta

Mr_Mumble wrote:

The online banking for this account is fun

Woah, using their website is like stepping into some antiquated state run office.

Very hard work filling in simple personal and banking details, slow and lots of page refreshing required. On clicking the final submission button I got an “Unable to process request phone ****” but also got an application receipt email telling me I should be receiving a welcome pack…

John

Mr_Mumble

To be fair to NS&I they have addressed the second point I made above. Adding this page prior to logging in which clarifies the balance issue.