New Nationwide e-ISA 2.75%

rb10

FrugalTopCat wrote: »

I was just about to apply for this when I noticed the following within the Ts & Cs for the e-ISA.....

"Nationwide's No Penalty Transfer Policy does not apply to this account."

Anyone got any clarification on that? I have been trying to call them just now but not managed to get through. Obviously all the advice here suggests that the beauty of cash ISAs is that you can keep transferring if necessary once their rate is no longer attractive....

This page of their website (for the CapitalBuilder account) says:

As CapitalBuilder is no longer available to open, under Nationwide’s No Penalty Transfer Policy you can switch your money to any other account in our range without notice or loss of interest.

FrugalTopCat

martinman3 wrote: »

The "No Penalty Transfer Policy" allows you to switch your money from an obsolete account to any other account in their range without notice or loss of interest.

I believe that this is different to an ISA transfer out which must always be allowed. Tell us what you find out.

Thanks for this MM3. Pity the Nationwide weren't able to tell me what it meant!! I tried again today and during another long call (this time to the ISA team) the advisor told me repeatedly that although she could not see the e-ISA Ts & Cs that I could see - on their own published website - what she could see on her system didn't say that. So that's OK then.

A supervisor subsequently called me back to say that this was an error on the Ts & Cs, and thanks for pointing it out. Not sure how this chimes with what you have pointed out above as to the meaning of "No Penalty Transfer Policy".

choc_mouse

FrugalTopCat wrote: »

Just following up on my post yesterday....I rang the savings dept at Nationwide and was put on hold for about 10 minutes, part way through they came back to tell me that the account did not accept transfers IN...once I had put them right on that (quoting from their own website blurb) after a further few minutes the advisor then came back to tell me that yes, there is a penalty on transferring out but she could not tell me what it was. So a complete waste of time - the ISA team was supposed to be ringing me but a full day later I have not received a call as yet.

So I'm a bit disappointed as this one looked like a good home for one of our transfers - I will post more info on what the restrictions are if I can get hold of this.

I agree with martinman3. If there were an ISA transfer out (to another provider) charge I would expect it to be clearly stated. The banks should know to state any charges clearly by now. It's not a fixed term account, so it would be unusual if there was any interest penalty as you can withdraw money at any time (by transferring to your current account online).

Mickygg

I looked at this e Isa. My worry with this one is that there is nothing stopping from nw dropping this to just 1% say in a few months. First direct has a higher guaranteed rate.

I am just saying this as a similar thing had happened to me before that's all. Obviously you wouldn't expect this to drop anytime soon though.

FrugalTopCat

Mickygg wrote: »

I looked at this e Isa. My worry with this one is that there is nothing stopping from nw dropping this to just 1% say in a few months. First direct has a higher guaranteed rate.

I am just saying this as a similar thing had happened to me before that's all. Obviously you wouldn't expect this to drop anytime soon though.

Ah, I see what you mean. I had focussed on the fact that the core (non-bonus) part of the FD rate was much lower (0.2% vs NW's 1.75%) but as you point out the FD one is fixed until Aug 2011. Hmmm. It's a real minefield isn't it?

:eek: