Nationwide e-ISA rate increase

AirlieBird

Nationwide have increased their e-ISA to 3.10%. This increase applies to eISAs with a bonus expiry date of 31 July 2012.
Whether this applies to those already taken out or just new ones I don't know as the bonus rate was meant to be fixed.

Doshwaster

AirlieBird wrote: »

Nationwide have increased their e-ISA to 3.10%. This increase applies to eISAs with a bonus expiry date of 31 July 2012.
Whether this applies to those already taken out or just new ones I don't know as the bonus rate was meant to be fixed.

I just opened my 2011/2 e-ISA the other day and I'm waiting for the internal transfer to go through from my previous e-ISA. The paperwork says that the interest rate is variable but the bonus is fixed above the "core rate"

The core is now 1.75%, the bonus is 1.35% giving a headline rate of 3.1%

http://www.nationwide.co.uk/savings/cash_isa/eisa/default.htm

Mickygg

I suppose you need to think - they increase the core rate, so come 2 months time whats stopping them cutting it?

BMikey

"...includes a fixed rate bonus of 1.35% gross p.a. payable from 4 March 2011 on accounts opened from 1 February 2011. The bonus is paid until 31 July 2012." (nationwide.co.uk/savings/cash_isa/eisa/default.htm)

david78

I looked on the site and these are the rates for each e-ISA account depending on when the bonus period ends.

bonus ends 30/6/2011 2.75% Gross
bonus ends 31/12/2011 2.80% Gross
bonus ends 31/7/2012 3.10% Gross

So it looks like they only changed the fixed rate part not the variable (=core) part. People with older accounts are not seeing any benefit.

I wonder if we can transfer to the better rate under their "savings promise", or open the 3.10% account for new money next tax year.

yorkiebar

If you've an existing eISA then just open this new one and transfer your existing holdings into it

Sanzai

In the T&Cs it mentions that minimum opening deposit is £1 for the e-ISA. If I have already used my ISA allowance for the tax year does this mean I cannot apply for the e-ISA until 6th April?

I would like to transfer from my previous e-ISA to this one, but think that technically it might not be possible until the new tax year for this reason. However, even if I wait for the new tax year they mention that the deposit needs to come from a Nationwide card account - this means the initial deposit of £1 needs to be from non-ISA money, and therefore commits my 2011/2 cash ISA allowance to Nationwide?

If only all these rules were set out clearly....

rb10

Sanzai wrote: »

In the T&Cs it mentions that minimum opening deposit is £1 for the e-ISA. If I have already used my ISA allowance for the tax year does this mean I cannot apply for the e-ISA until 6th April?

I would like to transfer from my previous e-ISA to this one, but think that technically it might not be possible until the new tax year for this reason. However, even if I wait for the new tax year they mention that the deposit needs to come from a Nationwide card account - this means the initial deposit of £1 needs to be from non-ISA money, and therefore commits my 2011/2 cash ISA allowance to Nationwide?

If only all these rules were set out clearly....

As long as you are transferring at least £1, then your opening deposit (i.e. the first money that the account is credited with) will be at least £1, so you will be ok.

Open the account now with no money, and fill in a transfer form.

M271

yorkiebar wrote: »

If you've an existing eISA then just open this new one and transfer your existing holdings into it

I am an existing Nationwide e-ISA holder opened last March 2010, just to clarify what I need to do to transfer to this latest 'issue':
1) Open online a new e-ISA
2) Wait for the account to be opened
3) Transfer online from the old e-ISA to the new

Questions:
a) What happens to the interest accrued on the old e-ISA as its paid in August each year?
b) Do I close the old e-ISA account ?

le_loup

a) & b)
Transfer most of the old account to the new account.
Fill in a form for the balance, interest payment and "close" instruction. It's all very simple.

beansy

Hi

Thanks for all your advice on this thread. I didn't realise you could do this.

I have just opened a new E-isa for OH and myself to transfer our current E-isa's to and noticed that I have 2 separate E-isa's already. I thought I had transferred them over to 1 last year but what I think must have happened, when my fixed rate ISA matured last year, instead of the money going into my existing E-ISA they must have opened a new one.

Should I transfer them both into one or leave them separate? One has in excess of £40K and the other £13K+.

I don't know what the rate is for each of the existing ones but one would have been opened in Dec 10 and I don't know about the other one.