National Savings Direct ISA - won't transfer in

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
10 replies 907 views
The_Living_LegendThe_Living_Legend Forumite
5 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
I wanted to take advantage of National Savings Direct ISA - 5.3 % per annum, by transferring in my Bradford and Bingley 5%. Phoned the help desk - they won't do it! The only ISA National Savings can transfer it to only gives 4.96%.

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  • wearside_2wearside_2 Forumite
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    Same for me as well. I wanted to transfer mine in from A/L but couldn't. If they do not do transfers they will not get many people investing the full £3000, as everyone with that amount already has it in an existing ISA. They will only get small savers which in the long term will cost more to run with regular deposits.
    To Dare is To Do:beer:
  • Sorry - just read the pages and this has been mentioned already.
  • richgirlrichgirl Forumite
    233 Posts
    Its a loss leader / poor earner for publicity, and costs more in admin for transfers.
  • EverestEverest Forumite
    65 Posts
    Don't worry too much. B&B are raising their Mini-cash ISA rate at the beginning of September to 5.15%. Makes it not worth transferring as loss of interest in the transfer outweighs the gain of 0.15%. The 5.15% is competitive.
    There may be no I in TEAM but there's a ME if you look hard enough!
  • masonicmasonic Forumite
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    wearside wrote:
    Same for me as well. I wanted to transfer mine in from A/L but couldn't. If they do not do transfers they will not get many people investing the full £3000, as everyone with that amount already has it in an existing ISA. They will only get small savers which in the long term will cost more to run with regular deposits.
    Anyone who has paid into an ISA this tax year will not be able to open the NS&I ISA now - the only way to do this would be to transfer in, which they do not allow. Plenty of people opened this account in April, though, and I'm sure there are still those who have not yet made any contributions this tax year who could make use of this account.
  • masonicmasonic Forumite
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    Everest wrote:
    Makes it not worth transferring as loss of interest in the transfer outweighs the gain of 0.15%. The 5.15% is competitive.
    On a balance of £10,000:
    Loss of interest (3 days at 5.15% APR) = £4.23
    Gain in interest (12 months at +0.15%) = £15.00 per year
    Days required to recoup loss from transfer = 103
  • EverestEverest Forumite
    65 Posts
    masonic wrote:
    On a balance of £10,000:
    Loss of interest (3 days at 5.15% APR) = £4.23
    Gain in interest (12 months at +0.15%) = £15.00 per year
    Days required to recoup loss from transfer = 103

    Masonic,
    Not sure if you've transferred a balance from one ISA provider to another recently, but it takes a great deal longer than three days. I would give it a minimum (and this is being good to the muppets who put these transfers through) of two weeks.

    Loss of interest (14 days at 5.15%) = £19.75
    Gain in interest (12 months at +0.15%) = £15.00 per year
    Days required to recoup = 480

    Not worth the hassle. Of course the point is academic.
    There may be no I in TEAM but there's a ME if you look hard enough!
  • XbigmanXbigman Forumite
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    I think you forget that NS&I are the government and they only want new money in their ISA. As such the rate is very good and guaranteed to track base rates. If you have more money to put in, this is a good option. And you can always transfer out if it becomes uncompetative.
    But for the rate tarts its hard cheese.
    Regards



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  • masonicmasonic Forumite
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    Everest wrote:
    Masonic,
    Not sure if you've transferred a balance from one ISA provider to another recently, but it takes a great deal longer than three days. I would give it a minimum (and this is being good to the muppets who put these transfers through) of two weeks.

    Loss of interest (14 days at 5.15%) = £19.75
    Gain in interest (12 months at +0.15%) = £15.00 per year
    Days required to recoup = 480
    I can't imagine who you've had ISA's with, but my new providers have always backdated the interest I received to the date the cheque was received. This means the only loss involved is due to the cheque usually being sent by second class post - hence 2-3 days. Some providers even backdate to the date written on the cheque so that no interest is lost at all.
  • Everest wrote:
    Masonic,
    Not sure if you've transferred a balance from one ISA provider to another recently, but it takes a great deal longer than three days. I would give it a minimum (and this is being good to the muppets who put these transfers through) of two weeks.

    Loss of interest (14 days at 5.15%) = £19.75
    Gain in interest (12 months at +0.15%) = £15.00 per year
    Days required to recoup = 480

    Not worth the hassle. Of course the point is academic.
    The transfer process can take a while but the actual loss of interest should be no more than a couple of days. If you've lost out on more than this then chase it with your bank and they should make up the difference.

    JC
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