Cash ISA After 1 Year?

Henfold

My wife deals with all this but I don't trust what the Nationwide tell her and don't think she understands.

After one year of a full cash ISA they are telling her to take it out and put into some other kind of account?

I thought the whole purpose was you DONT take it out and instead the interest is added tax free and it continues to grow over the years tax free?


Am I right or wrong?

le_loup

You are right.
What sort of account are NW trying to get you to use?

lisyloo

I think it depends on what they are telling her.
You can move a cash ISA to a stocks & shares ISA and keep the tax free ISA status.
That coulld possibly be good advice depending on circumstances.

You need to find out exactly what the advice is before we can say whether it's good or bad.

youngie

if she had a one year isa bond it would revert to an ordinary isa that doesn't pay as well she needs to check to see if that is the case if so she may be better moving it but needs to watch investment limits for each year

Gillyian

I have a cash isa with santander and had an appointment with them for something else and I asked if they would just check my isa, I was astounded I have substantial amount in there which I've worked hard to save for and was told that I was only getting 0.5% interest as after a year it revert to base rate unless you ask them to do otherwise... how bad it this, they must be making millions on people who forget to notify them.. I lost out on a very large amount of interest.

Baldur

Gillyian wrote: »

I have a cash isa with santander and had an appointment with them for something else and I asked if they would just check my isa, I was astounded I have substantial amount in there which I've worked hard to save for and was told that I was only getting 0.5% interest as after a year it revert to base rate unless you ask them to do otherwise... how bad it this, they must be making millions on people who forget to notify them.. I lost out on a very large amount of interest.

This has been the case with A&L/Abbey/Santander offerings for many years; attracting subscriptions by offering a high headline rate which incorporates a one-year bonus that falls away after the first year, leaving the unwary earning a pittance in interest.

Other institutions/providers are equally as guilty, but have possibly been less blatant in the reduction of interest to almost zero after the initial bonus period.

You've received an object lesson about the need to review your savings (ISA or otherwise) on a regular basis.