Nationwide Fixed Rate ISA 4.4%

bigfreddiel

Three years, 4.4% AER
The highest rate available for a 3 year term is Nationwide's Fixed Rate ISA paying 4.4% AER. The minimum deposit is £1, although you can only make one lump sum payment - no additional deposits will be allowed. This is a branch based account and allows transfers in from previous years' ISAs.


The above from this very site!


My question is: Should I wait till April 7th, top up my lousy Natwest ISA with £5100 and then transfer it, or do it now and open another cash ISA for next years £5100?


The risk of waiting is that Nationwide withdraw this product or the rate goes down. The bonus is an additional 1.65% interest over the enxt three years.


Advice please and thanks in advance


fj

alastair_h

I guess that depends on how much you want to tie up for the 3 year term. Also if the interest rate did go back up above 4.4% you could potentially be loosing out (not that it looks too good at the moment granted).

You can add £5,100 for the new financial year on 6th April 2010.

bigfreddiel

alastair_h wrote: »

I guess that depends on how much you want to tie up for the 3 year term.

Not a problem tying it up - I have sufficient in instant access accounts.

Also if the interest rate did go back up above 4.4% you could w potentially be loosing out (not that it looks too good at the moment granted).

True - and probably will go up (and its spelt 'losing' )

You can add £5,100 for the new financial year on 6th April 2010.

Oh well I was one day out!

Thanks for your reply

d712

Sorry if this sounds like a stupid question Does a transfer from a different provider count as a deposit? Because technically you're moving money rather than increasing your tax free balance.

Is it possible to transfer what you have from Natwest into this Nationwide Fixed Rate ISA on the 6th April and then make an immediate deposit of £5100 as the one off lump sum payment?

In other words, if you have £10000 in an ISA with another provider, can you transfer it in and make a deposit as well so you then have £15100 put away for 3 years?

bigfreddiel

d712 wrote: »

Sorry if this sounds like a stupid question Does a transfer from a different provider count as a deposit? Because technically you're moving money rather than increasing your tax free balance.

Is it possible to transfer what you have from Natwest into this Nationwide Fixed Rate ISA on the 6th April and then make an immediate deposit of £5100 as the one off lump sum payment?

In other words, if you have £10000 in an ISA with another provider, can you transfer it in and make a deposit as well so you then have £15100 put away for 3 years?

Well if you had read my post - of course I could WAIT till 6 March, transfer from Natwest AND deposit £5100 for 10/11 tax period, but Nationwide may withdraw this product on 5th March!

So the question again do I do it now or wait till 6th March to take advantage of being able to add 10/11's £5100 allowance but risk the product being withdrawn?

All comments welcome.

Cheers

fj

Baldur

bigfreddiel wrote: »

Well if you had read my post - of course I could WAIT till 6 March, transfer from Natwest AND deposit £5100 for 10/11 tax period, but Nationwide may withdraw this product on 5th March!

So the question again do I do it now or wait till 6th March to take advantage of being able to add 10/11's £5100 allowance but risk the product being withdrawn

From memory there have been previous posts on Nationwide's FRISA products, where multiple transfers or new subscription plus transfers have been concerned, they have permitted the opening of multiple FRISAs, i.e. a separate account for each tranche of funds.

If they are still prepared to do this, which you would need to check with them, you could arrange the transfer immediately and, if they are still offering the same rate on or after 6th April, simply subscribe your 2010/11 funds into another FRISA, which will mature a short time after the original one.

If they withdraw the rate, all you have to do is find an ISA account elsewhere that suits your needs for your 2010/11 subscription.

bigfreddiel

Baldur wrote: »

From memory there have been previous posts on Nationwide's FRISA products, where multiple transfers or new subscription plus transfers have been concerned, they have permitted the opening of multiple FRISAs, i.e. a separate account for each tranche of funds.

If they are still prepared to do this, which you would need to check with them, you could arrange the transfer immediately and, if they are still offering the same rate on or after 6th April, simply subscribe your 2010/11 funds into another FRISA, which will mature a short time after the original one.

If they withdraw the rate, all you have to do is find an ISA account elsewhere that suits your needs for your 2010/11 subscription.

Cheers baldur - top answer - just to re-iterate:

1) Do the transfer now from Natwest to FRISA - that accounts for previos years ISAs iup to 09/10.

2) Open a second FRISA for 10/11 with Nationwide - or someone else that offers a better rate.

Once again thanks for that - obvious really

fj :beer:

alastair_h

bigfreddiel wrote: »

True - and probably will go up (and its spelt 'losing' )

I must appologise for my disgraceful use of the English language

bigfreddiel wrote: »

Oh well I was one day out!

A days interest is better in your pocket than theirs :money: