What happens if an ISA offer 'closes' before you get confirmation of your account?

silvermum

Applied for the Nationwide 3 year FRISA (Fixed Rate ISA). Posted it on 22 March.
Apparently this was withdrawn from sale on 24 Mar. I haven't heard anything either way.

Do you think they will 'honour' the offer if it arrived on 24th (or even 25th) March?

It wasn't 'new money' - it was a re-investment of a previous Nationwide 1-year fixed rate.

Mickygg

Nationwide are apparently letting existing customers still go for the three year deal so I'd say you'll get this. Give them a call though to chase it up and check.

david78

Hi silvermum

I'm in the same position as you. I sent my "maturity instruction form" to them on 23rd.

The position is that they will honour the 4.4% if your form arrived before close of business on 25th. I don't think mine would have quite made it but I'm keeping my fingers crossed. If it missed the deadline, they will offer me 4.15% I believe which is not too bad.

Have a look at your letter, just above the tear off strip and it tells you there. The info about the 4.15% is from their press release.

Edit. Also see my post below for latest news.

david78

Mickygg wrote: »

Nationwide are apparently letting existing customers still go for the three year deal so I'd say you'll get this. Give them a call though to chase it up and check.

Where is this information from Mickygg?

david78

Never mind I found it here:

http://www.nationwide.co.uk/mediacentre/PressRelease_this.asp?ID=1536

The important bit:

"For those customers who have already received a maturity mailing offering them the three year Fixed Rate ISA paying 4.40% gross p.a./AER* (annual interest), Nationwide will honour that rate should they wish to reinvest their funds3. This also applies to transfer-in applications already received and where Nationwide is awaiting funds from the existing provider4."

silvermum

Thanks david78 - that's good to know. I missed that bit on the form.

Botany

I have the same issue. I've submitted my transfer forms to the 4.4% deal on March 19, and did so personally to my local branch.

I haven't heard from Nationwide either, and became aware of the offer withdrawal only thanks to this website.

I called Nationwide Customer Service (08457 302010) 10 minutes ago and they said that they could not tell me whether I would get the 4.4% rate: it depends on whether the forms were received on time. I pointed out that I handed them in myself, in branch, on March 19, but apparently this is no guarantee as they will be considered on time only if they "have been stamped" on time (whatever that means). Anyway, I was given a different number to call, that for the Nationwide Isa Helpdesk (08456 028 781); they are open 9am to 7 pm and apparently they know what is going to happen. I'll try this later.... But don't hold your breath....

Interesting that I find this out just as the Today programme on BBC Radio 4 was discussing the problems with ISA transfers and sudden rate changes. I find it amazing that banks haven't yet been forced to clean up their act when it comes to ISAs. In an age of Faster Payments, it still takes WEEKS to transfer an ISA? :mad:

Botany

Well I thought I would update you.

I called the Nationwide ISA transfer team on 08456 028 781 and was told that they will honour the 4.4% interest rate since my transfer request was 'stamped' on the 23rd (I took the transfer form into my local branch on the 19th).

So far so good.

They also told me I should expect the transfer to take another 3 weeks or thereabout because guess what? They are experiencing a high volume of transactions! Excuses excuses........

david78

I got good news today that they are giving me the 4.4% rate for my matured ISA and for my new £5,100 subscription on 6 April 2010. I applied to top-up at the same time as re-invest my old FRISA (there was an option on the form to do this). They received/stamped my form on 25th March (they send a stamped receipt as proof) and the 4.4% bond was withdrawn at the close of 25th March so I just got it in time.

Actually, the press release on their website says they will honour all applications for 4.4% if this was offered on the re-investment form (so anyone still sitting on a form with this option can get it if they want.)

They normally take 30 days to set up the account and issue new "paper" bonds (but only a few days for the account to show online), but interest is backdated to the day your old account matures so this is not much of an issue.

No news from silvermum? Hope she got good news too.