quick questions

cv65user

Early june 2010 I maxed out my ISA from halifax . and then realised the rate and trasnferred it to natiwiowide champion ISA 2.80% but it is now at 2.44 %.

Halifax new ISA is at 2.80% , but 3.00% for current account customers!! so i want to transfer back? but i presume i am not allowed as I nationwide champion ISA has tied me to a 12 month contract - is that right ? Because I only have a passbook no T&C I think I threw away :mad:

Reaper

Before you rush out and switch again pause for a moment and check.

Looking at the Nationwide web site it says 2.78% gross. It does also say 2.44% AER but I am guessing that is because the bonus expires in June 2011 so it does not last a full year for those taking it out now. Check when your bonus expires, if you get it for the full year then your AER will be higher.

Secondly how much money are you talking about? If it is a single year's £5100 allowance the difference between 3% and 2.44% is only £28, or £11.22 if it turns out the Nationwide account is actually paying you 2.78%. Maybe not worth the hassle particularly as you may lose some interest while the transfer is in progress.

cv65user

thanks for your help
roughly £20,000.00, so would it be worth swithicing ?

Reaper

That's a question for you. Multiply my figures by 4.

Also remember rates can change. The Halifax one can change to anything it wants whereas the Natiowide one is the average of the top few High Street ISA accounts so it will never be the top payer but will stay competitive.

If it were me I would wait until while the Nationwide's bonus period still running then sort out a move at the same time I sorted out the next year's ISA. But that's just me, it's up to you.

Baldur

Historical monthly rates for the NW Champion ISA are shown HERE. You are permitted ONE free withdrawal (which would, presumably, include an ISA transfer but you'd need to confirm this) per year, otherwise you have to give 60 days notice/60days loss of interest - see http://www.nationwide.co.uk/savings/cash_isa/championisa/summary.htm.

rb10

Reaper wrote: »

Maybe not worth the hassle particularly as you may lose some interest while the transfer is in progress.

You wouldn't actually lose any interest during the transfer, as Halifax will pay interest from the day that they receive your transfer form (meaning you'd be getting interest from both Nationwide and Halifax for a short while).

Reaper wrote: »

Also remember rates can change. The Halifax one can change to anything it wants whereas the Natiowide one is the average of the top few High Street ISA accounts so it will never be the top payer but will stay competitive.

I would be willing to put money on the fact that the Halifax rate will (more or less) track the BOE base rate for the first year.

Halifax does not have a history of cutting rates unreasonably half way through the year.