Where to save? (Nationwide's poor rates)

Sapphire

I have over £100,000 in a Nationwide e-Savings account, but the interest rates are comparatively poor - 4.55% - and they haven't increased them since the increase in BoE interest rates. I've tried contacting them about this, but they haven't bothered to get back to me. Could anyone suggest a place that would pay better interest with no strings attached, and where the interest rate would be guaranteed not to drop for at least a year? I will be saving the money for at least six months, possibly considerably longer, but am uncertain about this.

I've tried Market Harborough - their current interest rate is 5%, but they say it's only guaranteed until this September. I don't want to invest in the Indian account.

I also have an ISA with Nationwide (interest rate 4.5%). There's about £2,000 left in this after I transferred the remainder to A&L ISA earlier this year, and I have a National Savings ISA. NS do accept transfers, but the interest rate for these is much lower than for new ISAs. Should I transfer the money somewhere or leave it where it is?

Any help much appreciated, as ever.

codetown

As per savings, very few can guarantee you for at least one year (unless you mean a fixed bond investment, which is something different) giving at the same time the full flexibility on withdrawing your money instantly.
I agree anyway that in the last year or so Nationwide has been average/poor on most savings products. Not sure why this is happening, but the board looks to me more and more acting like a plc and not a mutual. I also had to move savings out of Nationwide (I emptied both ISA and esavings).
In any case I expect that the e-savings rate will increase by 0.2% in a month or so.

For an instant access account with guarantees, I would suggest to look at:
Post Office Instant Saver: 5.00% AER from Aug 29th (and guaranteed to match or better BOE until 1/1/08)

For the ISA: why din't you transfer all to the A&L ISA? It was the best ISA until recently. I think that people are now converging all their ISA to:
NS&I Direct ISA: 5.30%
As far as I understand you would have to transfer your Nationwide ISA to the 'standard' NS ISA (the one you have already) and then do an internal transfer/conversion to the N&S Direct ISA (online one) to get the best deal. Maybe someoneesle will tell you more as I have not looked into this personally.

steady__eddie

I share your concerns regarding Flexaccount and use mine now to fund my regular savings accounts. Have you had a look at http://www.fsa.gov.uk/tables/ ?
You may find something on there which meets your requirements.

KTF

codetown wrote:

As far as I understand you would have to transfer your Nationwide ISA to the 'standard' NS ISA (the one you have already) and then do an internal transfer/conversion to the N&S Direct ISA (online one) to get the best deal. Maybe someoneesle will tell you more as I have not looked into this personally.

NS&I are wise to this:
"You may transfer your NS&I cash mini ISA to a Direct ISA but only where the NS&I cash mini ISA was opened prior to 6 April 2006. Part transfers are not permitted."

Sapphire

… for your very helpful responses.

I will investigate the Post Office savings account.

It looks as though the ISA will stay where it is. I transferred the bulk of it to A&L earlier this year, but for some reason left a couple of thousand pounds of it in the Nationwide ISA. Silly me!

I also have a Tessa ISA Bond, which is at around 5.8% interest (I think).

It's too bad Nationwide doesn't provide a good deal on interest rates. I'm otherwise quite happy with their service, having transferred all my banking from Lloyds earlier this year. I changed from Lloyds because of their incessant hassling about selling me products, despite the fact that I had persistently asked them not to do this. I also feel they are just too impersonal. Nationwide seemed friendlier, and my sisters have banked with them for years - but their interest rates 'suck'! :mad:

caveat_emptor

Sapphire wrote:

It's too bad Nationwide doesn't provide a good deal on interest rates. I'm otherwise quite happy with their service, having transferred all my banking from Lloyds earlier this year. I changed from Lloyds because of their incessant hassling about selling me products, despite the fact that I had persistently asked them not to do this. I also feel they are just too impersonal. Nationwide seemed friendlier, and my sisters have banked with them for years - but their interest rates 'suck'! :mad:

Totally agree with thoughts on Nationwide, banking service is good but savings rates are bad. Directors too busy giving themselves big pay rises. Can't understand why anyone would save with them. Look at Birmingham Midshires Internet which is 4.95% (annual interest) includes bonus for 12 months and Northern Rock 5.01 (annual) includes bonus for 6 months.

Mr_Mumble

codetown wrote:

I agree anyway that in the last year or so Nationwide has been average/poor on most savings products. Not sure why this is happening

Quite simply Nationwide have too many savers and not enough mortgagors.

This was mentioned in William Kay's Sunday Times piece a few months ago (when Nationwide reduced rates despite no base rate cut). There was the inference that Nationwide may have to cut rates for savers again.

The BoE increase gives 'em the option of cutting stealthily by passing on a rise, just not the full rise. Hopefully this is an overly cynical viewpoint we'll find out [STRIKE]soon[/STRIKE], [STRIKE]next week[/STRIKE], um, at latest early September!

kenshaz

ICICI cannot be beaten on interest rate easy access no strings account

homersimpson_3

The BoE increase gives 'em the option of cutting stealthily by passing on a rise, just not the full rise. Hopefully this is an overly cynical viewpoint we'll find out soon, next week, um, at latest early September!

where did you get this information from? nationwide said they couldn't tell me because they have to wait until management board met. where is everyone else transfering isa to?

sallysaver

Hi,
Earlier this year I transferred my Northern Rock Isa (didn't read the small print advising they dropped the bonus payment thus making it 3.75% after 12 months) and after searching around found the Saffron Waldon offering 5.30. The transfer was done swiftly and my 2006/07 allowance (which I have just sent them) was posted on a Monday and arrived back, all marked up on the Wednesday. They have been extremely polite and efficient on the telephone so I think they are worth mentioning. Regards - Sallysaver

Kazza242

homersimpson wrote:

where did you get this information from? nationwide said they couldn't tell me because they have to wait until management board met. where is everyone else transfering isa to?

If Nationwide do decide to raise any of their savings rates, following the recent base rate increase, you should find information about it on the Nationwide Media Centre page.