Northern Rock 3.5% 1 year fixed ISA

realaledrinker

I applied for the Northern Rock Issue 124 ISA at 3.2% in mid November to transfer my Halifax fixed rate ISA which matures next week. Since then that issue has been withdrawn and we now seem to be on Issue 127 at 3.5%

Can anyone advise if there is any mileage in me trying to get my imminent transfer opened as an Issue 127 ISA rather than 124?

rexel

what you do is put a pen through 124 and replace it with 127 you get rate which apply at time

Pastyman_2

I asked Northern Rock on 20/11/09 to arrange a transfer from Halifax thinking I'd get 3.2%. I received the certificate of deposit from NR yesterday quoting 3.5%.

frankie

I've decided to go with the NR FRISA instead of with First Direct. Not just because of the better rate (and non variable) but the palaver of going back and forth via post with First Direct.

Underthemattress

Is it now impossible to apply for an Issue 127 at 3.5% meaning that only the 3% Issue 128 is available ?

How frequently are these rates revised ? Is it monthly ?

Old_Slaphead

Looks like rates were changed Friday

cottager

Underthemattress wrote: »

How frequently are these rates revised ? Is it monthly ?

It varies, according to when whoever's offering it considers they have 'enough'. Savings interest rates are a mechanism for controlling demand, and a fixed term is a means of knowing how much money they can rely on (use) for a set period of time, and each bank's/society's needs will be different.

At the moment while we're scrabbling around for a decent rate, anyone offering something higher than most will know there'll be a good demand, and probably have a target figure in mind. When that's reached the rate's withdrawn and will fall back to what most of the rest of the pack are offering, or lower. Remember they also have to service payment of the higher interest promised at the end of the fixed term; and funds attracted inwards also have a direct bearing on what they're able to lend out. So a number of factors will come into play when deciding what rates to offer and for how long.

I think that's broadly how it works... someone will soon be along to correct me if not

A couple of weeks ago one of the smaller 'local' building societies came out with, comparatively, a very good rate for a 1-yr fixed rate bond (not an ISA) which was withdrawn again after only a day, so I imagine the demand must either have been extremely high, or their target figure quite modest.

Issue 127 at NR was withdrawn last Monday 7th.

jennifernil

Anyone who got their application in to NR before the issue closed will get the rate if their transfer goes through within 30 days. So we are all very much in the hands of our present ISA providers. If they drag their feet then we will lose out.

datostar

Well I got the paperwork today (17/12/09) from NR confirming opening of the Issue 127 3.5% ISA following transfer of funds from the M&S Advantage ISA. Congratulations to both companies who have worked smoothly and speedily!