Nationwide e-isa misleading?

tamilian

Have been looking at transferring my ISA's to Nationwides e-isa (2.75%) as recommended on Martin's guide to ISA's article on this site. On reading through the terms I get the feeling that the small print is worth looking at before anyone jumps into signing up for this.

The rate of 2.75% includes a fixed bonus of 1% till 30 June 2011 which is fair enough, but further down they say that the interest will be credited every 31st August. So basically if one opened the account with them, then come 1st July when the bonus effectively expires, we will be stuck with the standard rate at that time till the 31st August before being able to move it to another ISA offering a better rate!

Have I understood this correctly?

A further concern is that in August/Sept there won't be many competitive deals out there to move to unlike in March/April of the year, Nationwide effectively forcing us hold on to our deposits on a paltry interest rate till the following March/April!

Is it worth signing up for this?

I cannot take advantage of First Direct's comparable deal, as I have my ISA's with them at the moment, and I can't take on Santander's direct ISA transfer value it is below £9k.

apt

If you move your ISA away from Nationwide before 31 August you would still get the rate including the bonus for the period up to 30 June. You can also move before then if you see another offer you like.

choc_mouse

tamilian wrote: »

Have I understood this correctly?

No. It's not a fixed term account, so you're free to transfer out any time without any penalty or loss of interest because it's an instant access account.

The interest is calculated daily but basically it's an account which pays interest annually, rather than monthly. Nationwide have just chosen to pay it on 31st August of each year. If you close your account earlier e.g. transfer out/withdraw from the ISA, you will still get the interest + bonus.

BNU_2

I've just abandoned my application because I noticed that by opening a new account with them I'd automatically and irreversibly be allocating any conversion benefits if Nationwide were to become a bank to their charity!

Now, I've always voted for them to stay a Building Society and believe it's in the customers' interests (although now charging for card use abroad is a great shame) but I've been with them since 1984 and if they do ever convert I'd like to keep my rights to a payout. Shame because it'd be handy having the e-ISA and being able to easily transfer in though my internet banking but I'll probably opt for another supplier now - which will also probably mean transferring my existing ISA (currently paying just 0.50%) to the new provider.

I think Nationwide are shooting themselves in the foot with this one.

glider3560

BNU wrote: »

I've just abandoned my application because I noticed that by opening a new account with them I'd automatically and irreversibly be allocating any conversion benefits if Nationwide were to become a bank to their charity!

Now, I've always voted for them to stay a Building Society and believe it's in the customers' interests (although now charging for card use abroad is a great shame) but I've been with them since 1984 and if they do ever convert I'd like to keep my rights to a payout. Shame because it'd be handy having the e-ISA and being able to easily transfer in though my internet banking but I'll probably opt for another supplier now - which will also probably mean transferring my existing ISA (currently paying just 0.50%) to the new provider.

I think Nationwide are shooting themselves in the foot with this one.

That clause only applies to new members since 1997. If you've continuously held membership since before 1997, then it won't apply to you.

JohalaReewi

BNU wrote: »

I've just abandoned my application because I noticed that by opening a new account with them I'd automatically and irreversibly be allocating any conversion benefits if Nationwide were to become a bank to their charity!

Now, I've always voted for them to stay a Building Society and believe it's in the customers' interests (although now charging for card use abroad is a great shame) but I've been with them since 1984 and if they do ever convert I'd like to keep my rights to a payout. Shame because it'd be handy having the e-ISA and being able to easily transfer in though my internet banking but I'll probably opt for another supplier now - which will also probably mean transferring my existing ISA (currently paying just 0.50%) to the new provider.

I think Nationwide are shooting themselves in the foot with this one.

Isn't that just for new customers? Since you have been with them from 1984, your existing terms should still apply?

BNU_2

Really? Thank you. I'll double check with my branch then because it'd be nice to keep things inhouse.

glider3560

BNU wrote: »

Really? Thank you. I'll double check with my branch then because it'd be nice to keep things inhouse.

At the bottom of the text, it should say something like:
"If you were a member of the Society on 2nd November 1997 and have continued to be a member since that date, the Charitable Assignment section does not apply to you."

thor

BNU wrote: »

Now, I've always voted for them to stay a Building Society and believe it's in their Directors interests

Corrected your post for you.

BNU_2

thor wrote: »

Corrected your post for you.

I'd have written Directors had I meant Directors...

I've always had good service from them - unlike others I have dealt with.