Anyone sticking with NatWest e-ISA (acc opened before 14 May 09)

jonny2510

Hi I'm hoping someone can confirm my logic, or at least let me know if they'll be sticking (and re-subscribing) with their NatWest e-ISAs.

The old NatWest e-ISA (opened on or before 14 May 2009) seems to still pay pretty good rates of

£0-9,999 - 2.75%
£10,0000-29,999 - 3.01%
> £30,000 - 3.26%
(Source)

Is anyone planning to use their (above pre 14 May 09) e-ISA to pay this years allowance into?

For those with above £30,000, it seems to beat Santander / A&L, and for those with less, a quick calculation of £5,100 saved over 12 months will only make £10-23 less interest (is it really worth the time, extra paperwork, and inconvenience of opening and monitoring another account).

Anyway, the above is my logic, and as a result I think I'm going to stick with my e-ISA, and put new money into it this year.

What I'm worried about is the NatWest rate changing. Does anyone know if it is a bonus rate (and due to drop) or just variable?

If I subscribe (by paying in some money) to it this year, and then they drop the rates substantially, can I open a new (best buy) ISA transfer account, and transfer all the money across, or will I have to wait until next year?

KTF

That is a good rate for an instant access. I thought that the rate would drop after a year but I cant see any mention on their site that it has/will.

royeee

If I remember rightly the bonus for those opening on or b4 14 May 2009 is taken off this July or August and I'm not sure what % but presume the same as that of after 14 May 2009.

I wonder if its possible to put in the extra £5100 for this new tax year now and if warranted transfer to another ISA after the bonus rate is dropped without adding any more money as the limit is already reached. If not then seems better to hold on to the £5100 till after the rate drops so as to transfer to a new ISA with significantly higher interest rate.

KTF

Yes, you can top up the Natwest one now and transfer to another provider later if you want.

jonny2510

Just had the joy of an "online chat" with NatWest

The (eventual) response:

That higher rate [for accounts opened on or before 14 May 09] is just ongoing until, a decision is made to review or change that.

Am no better off really!

Edit: could be pulled tomorrow, or (unlikely) never

The issue is I won't be depositing my full allowance in one go, just doing a bit at a time. Would I be correct in assuming if I transfer the account mid-term, I won't be able to make any more cash ISA deposits until the next financial year?

jcw_2

Also wondering about this one. I had a similar online chat with their advisors. Was told that the introductory bonus had now run out (not sure this is correct - the interest payments I received don't seem to support that statement) On the +ve side he said the 3.01% was the ongoing rate until advised otherwise and any funds paid in now would get that rate.

The_Fat_el_Hombre

Yea I weighed up the other ISA's and decided it wasn't worth the hassle. If the rate drops then I'll just have to live with it and transfer next April

The rates did drop just at the end of last year btw

ACID

i have an e-ISA from last year
cant exactly rember the date
but was told it is 0.50%

ACID

lady at frtn coutner conriemd i was on 0.50% for this year
and i only opened my accoutn last May 7th 2009

tiem to trasnfer, if it helps i hve only £3600 in it.

KTF

Are you sure that you dont have the Cash ISA rather than the e-ISA?

http://www.natwest.com/personal/savings/g2/isas/cash-isa.ashx#tabs=section4

ceh209

I've got the e-ISA at 3.01%, and I'm deciding to open a santander one for this year. Although it's a bit of hassle, I've decided that at least it's guaranteed for a year, whereas I believe the Natwest could drop at any time.