Nationwide Cash ISA - already have one do I get high interest rate?

andreaseedhouse

I opened a Nationwide cash e-ISA in May last year and transferred all my previous year's ISA's into it (not a lot now I have bought a house sadly) as that was a best buy at the time (Cheers MSE!).

I think the interest rate is now less than 3% (although I'm not really sure when I check their website). I want to open a new cash ISA for this tax year and Nationwide's 3.1% is pretty competitive. If I continue to invest in my already open e-ISA for a new tax year will I get the current rate of 3.1% or will it get the previous rate? Not really sure how it works!

Hope someone can help,

Cheers!

jimbow25

You won't get the best rate automatically. you can open a new one and transfer the old one in though. See posts 50 and 51 here I think this is the same query: https://forums.moneysavingexpert.com/discussion/3090614

You can check your interest rate on their website: http://www.nationwide.co.uk/savings/all_accounts/all_accounts.htm?ct=olb

chris888

Hi "andreaseedhouse"

Just saw your thread.
I too opened a nationwide flexible ISA last year, I was just wondering if you received any interest on your account yet and if so did you get the right amount?
The reason am asking is because I have not received any interest on mine yet, but I have received a letter/statement from Nationwide stating the proposed amount of interest that i would be getting. But it is considerably lower than I was expecting. Basically the account I opened stated it would be 2.75%, according to the letter I received the interest only works out on my account to be approx. 1%.

david78

Chris888,

What account is it exactly?

Interest on the Nationwide e-ISA is paid at the end of August (interest on other e_ISAs is paid at end March and on maturity for fixed rate accounts). So, if its the e-ISA you may have had some interest in August last year and will get some more in August this year. For other ISAs interest should have been paid on 31 March 2011.

Andeaseedhouse,

If you open another e-ISA (to get 3.1%) and transfer your existing e-ISA into it, you get interest credited on the day of the transfer. The process takes about a week and is worth doing if you're not on the best e-ISA rate. All you do is apply online for the new account and tick the box to transfer an existing e-ISA in. Dead easy.

chris888

david78 wrote: »

Chris888,

What account is it exactly?

Interest on the Nationwide e-ISA is paid at the end of August (interest on other e_ISAs is paid at end March and on maturity for fixed rate accounts). So, if its the e-ISA you may have had some interest in August last year and will get some more in August this year. For other ISAs interest should have been paid on 31 March 2011.

As far as I can remember it was an e-ISA, I would have to double check my paperwork to make sure. As for interest I can't remember ever receiving any interest on the account since it was opened, again I would have to double check my paperwork because it doesn't show any transactions for the account in the on-line banking.
A bit more info for you, so that you see where I'M coming from:
Basically I transferred £15,000 into the e-ISA in May last year and I now get a letter telling me that I will be getting £170 interest on the account which should be paying 2.75% interest.

david78

Correction.

Interest is paid in September for the Champion ISA
Interest is paid in August for the e-ISA
Interest is paid in March for other ISAs.

When does the letter say you will be getting the interest?

andreaseedhouse

Apologies-I have been away on holiday for a week! Thanks David for that, I will open an e-isa and transfer the old one into it and hopefully get the 3.1%

I also had a letter last week about my current e-isa with nationwide. It stated my interest rate was 2.75% but I had nowhere near that added to the account as interest over the 12 months. I guess the interest would be calculated if and when I transfer it into a new ISA?

david78

andreaseedhouse wrote: »

I guess the interest would be calculated if and when I transfer it into a new ISA?

Yes it will.