Nationwide Fixed Bond HELP Please?

KingKenny

Hi.

We have a Nationwide Fixed Rate one Year E Bond, which matures on the 30th September 2010. It was opened on the 30th September 2009, so ran for one whole year.

1) Will the sum of money in the fixed rate bond become available, become cleared funds in my Flex account on the 30th September or will it become available on the 1st October?

2) Does it clear at midnight on say the the maturing day?

3) I ask because if it clears, well becomes clear funds on the 30th September 2010, this is a Thursday. I have opened a Post Office E Savings account, what i wanted to do is instruct my Post Office E Savings account to take the sum of money from my linked account, My Flex account on the 29th September, the Wednesday. It takes three working days so will be cleared before the weekend on the Friday 1st October, if i get it to work. But if i instruct the Post Office account to do a BACS withdrawal on the Wednesday, the money must be cleared in my Flex account on the Thursday, so they will take it via BACS, then be earning interest on the Friday in my Post Office E Savings account.

Its just the sum is not big enough to warrant a CHAPS payment, but if i wait until the Thursday, i lose two days interest over the weekend, not a massive amount, but better in my pocket than the Nationwide Building Societies pocket?


Thanks

noh

The funds don't get automatically transferred to your flexaccount on maturity.
What happens is the E-Bond account becomes redesignated as an "e-bond maturity account" which is essentially the same as an e-savings account.
Looking back at some I have held previously it looks like they matured on the same date as opened a year previously.
ie I opened one on the 19th Oct 2007 it matured on the 19th Oct 2008 and I manually transferred the full amount out to my Fleaccount the same day.

KingKenny

Good Point, the sum of money becomes cleared funds in the "e-bond maturity account" on the 30th September 2010. As i opened it on the 30th September 2009, it runs for 365 days inclusive so on the 30th September 2010 is the 366th day, so it is a day over the year period. So i will then have to manually move the sum into my Flex account from the "e-bond maturity account" .

If i initiate a Direct Debit withdrawal on Wednesday 29th September from my Post Office E Savings account, and it goes to take the sum on the Thursday 30th September, and i have not moved it in time to my Flex account. Then the Nationwide will kindly refuse the Direct Debit payment out of my Flex account because the sum is not there yet. Will i get charged for a bounced Direct Debit payment?

Might be easier just to swallow a couple of days of lost interest over the weekend?

If i initiate a transaction from my Post Office E Savings account on Thursday 30th September, the money will be then in my Flex account, so by BACS it should be cleared and earning interest in my Post Office Savings account by the following Monday 4th October?

KingL

You're always going to lose a day or two's interest shifting stuff around.

How much is the sum you are transferring? Lots of places have a limit of £10k per day.....

rockitup

I think with Nationwide you can move several lots of £10k a day online, seem to remember I moved £80k back in 2008 but had to make several transactions

KingKenny

1) Agreed by BACS you always lose two days interest, not a problem. But when it incorporates a weekend then you lose four days interest..............................My problem.


2) With account like the AA and the Post Office E Saver, these accounts pull the money from your Flax account by direct debit sep up when you open the AA and the Post Office E Saver.............

So you do not encounter the £10k BACS limit as it is a Direct Debit for say £30k, this £30k is pulled out of your linked account via DD.

If you were sending the cash to the AA and the Post Office E Saver accounts, 1) this facility is not available, 2) you would encounter the £10k limits so make three transactions................From your linked account via BACS, or with the NW you could do a CHAPS......


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