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

someone

I've left my old money in this and opened the Santander 3.25% (as it will track the BOE rate up if/when rates start going up)

astro-k

I used their chat page and got incorrect info. Called them and the bonus rate goes next month so will only be getting 2.47% on my £35k. NCBS are looking good for 3.1% with 45 days notice suddenly..

royeee

KTF wrote: »

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

I don't think you can open and transfer to another provider in the same tax year unless you have money to put in. Maybe ok if put in (£5100-£1) in the current one then open and transfer to another account with the remaining £1?

KTF

You can only pay new money in to one ISA per tax year. You can transfer existing ISAs as many times as you want as long as no more money is paid in to them.

topgearfan08

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Alex: Hello, you’re chatting with Alex. How can I assist you with your queries today?
Topgearfan08: Hello, I have an e-ISA account which was opened before 14 May 2009 and am currently receiving 3.01% interest...
Topgearfan08: is this subject to any bonus rates?
Topgearfan08: And if so when do these end
Alex: Nope, that's the standard rate at the moment for that ISA - it isn't a bonus rate.
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astro-k

That's around 4 different answers I've read so far...wonder which is true!

royeee

astro-k wrote: »

That's around 4 different answers I've read so far...wonder which is true!

I'm still convinced that it was a bonus rate what was meant to end at some point this summer. If not then they've changed the policy (if they're allowed to) or someone changed it without realising the original arrangement. However if they're going to let it continue then its an advantage as long as they don't suddenly lower the rate significantly.

SquareMeal

I am also wondering whether to keep and resubscribe to my e-ISA opened before 14th May 2009.


Called Natwest this morning , was told that the rate will certainly be dropping, but not when or by how much.

Guess I will put £5100 in to e-ISA now. As soon as the rate drops, I will transfer the whole lot to a more attractive provider, if there is one. It is my understanding of the ISA rules that you CAN invest in a cash ISA and subsequently transfer those funds in the same year, as long as you transfer the whole amount.

The rules say you can open only one cash ISA per year. But the second opening above, opening another cash ISA with a second provider after the first provider drops the rate, does not count as opening a new ISA, because you are not putting any new money into it, even though it is, in reality, a new cash ISA.

Sources:

www . which . co . uk/reviews/cash-isas/page/faqs
"However, if you want to switch your current year's Isa as well, you must switch all the money you've paid in since 6 April. "

forums.thedigitalfix.co.uk/forums/showthread.php?t=591640 - "If you later don't like your new 2010-11 ISA that you have just opened and want to move it during the current tax year, you have to move it all at once. Once the end of the tax year comes round you can split it up to different providers if you want, the same as you can with money from previous years, but current year ISA money always has to be kept in one dollop."

Sorry I am not allowed to post links so you wull have to remove the sapces from the above and then paste the whole lot into the top of your browser.

astro-k

Just spoke to them again. The rate on the e-isa opened before 14th May will change when they release their new rates at the start of May, probably around 4th/5th May. So it looks like the bonus on the 3.21% will be coming off then. I'm waiting to see then probably going to 3.1% with NCBS.

royeee

SquareMeal wrote: »

I am also wondering whether to keep and resubscribe to my e-ISA opened before 14th May 2009.

Called Natwest this morning , was told that the rate will certainly be dropping, but not when or by how much.



The rules say you can open only one cash ISA per year. But the second opening above, opening another cash ISA with a second provider after the first provider drops the rate, does not count as opening a new ISA, because you are not putting any new money into it, even though it is, in reality, a new cash ISA.

The problem is that when you move existing cash ISA to another source there is a time lapse till when its set up and losing interest during that time. Now you confirm what my understanding was I'm inclined to hold the £5100 for the moment and if the rate does drop I put in the wherever else first then move the rest later.