Nationwide MySave Online Plus – 2 Year Fixed E-Bond

ENZO12

Hi,

I have a 2 Year Nationwide B/S Fixed rate E-Bond maturing in September, currently yielding 3.9%, the current fixed rate deals on offer by the Nationwide are quite funny, they really a taking the p!ss….

My 2 Year Fixed rate E-Bond, matures on a Saturday, so in essence circa £500k, will sit in my Flex account for two days earning no interest, until I CHAPS it out on the Monday morning to an institution paying a much better rate of return. I could roll over the money into a new Fixed rate E-Bond with the Nationwide, but like I said the rates of return make it not worth it?

I am thinking of opening a Nationwide MySave Online Plus, which pays 3.05%.

My question is.

1) On the Saturday morning the money from my 2 Year Fixed rate E-Bond, will be transferred into my Flex account which is linked, can I transfer the funds instantly into my newly opened Nationwide MySave Online Plus account online, so will I be earning interest straight away on the Saturday, so in essence if I leave the funds for two days in the Nationwide MySave Online Plus account, I will earn interest for the two days? Payable at the end of the month, or if i make the one and first withdrawal on the Monday; will i lose all interest payable for that month?

2) Is the interest paid monthly from the Nationwide MySave Online Plus account into your nominated account?


3) On the Monday morning, I assume I can make one withdrawal from my Nationwide MySave Online Plus account, without loss of interest on the account. So if I withdrawal the funds back into my Flex account, ready to CHAPS out on the Monday morning. I will not be allowed to make any more withdrawals for the calendar year, or i lose the interest for that month i make the funds withdrawal in etc? So do I just leave the account open for the remainder of the time, so I do not lose the bonus? So the earlier I open the Nationwide MySave Online Plus account, the better really as I have less time to wait for the calendar year to end, so not to lose my bonus?

Thanks for any help?

xrjtg

ENZO12 wrote: »

On the Saturday morning the money from my 2 Year Fixed rate E-Bond, will be transferred into my Flex account which is linked

Your money might instead go into an e-Bond maturity account, currently paying 0.45% AER. At current rates that means that, if all goes well, you can look at getting perhaps £42 interest after tax for your two days in the MySave account.

I don't know how the timing of what you propose would actually work out, but you might find the return on time invested greater from making absolutely sure that the place you move the money to is paying you the best possible rates.

Sceptic001

Before worrying about the inconvenience of a bond maturing on a weekend, are you aware of the £85k FSCS limit? If not I would research it, starting here: http://www.moneysavingexpert.com/savings/safe-savings

alanq

ENZO12 wrote: »

1) On the Saturday morning the money from my 2 Year Fixed rate E-Bond, will be transferred into my Flex account which is linked, can I transfer the funds instantly into my newly opened Nationwide MySave Online Plus account online, so will I be earning interest straight away on the Saturday,

No you can't. You could do an instant transfer into an eSavings or eSavings+ account but the MySave account is treated as if it is held with an external organisation and will take a few working days to arrive.

http://www.nationwide.co.uk/search/DisplayArticle.aspx?article=1606

ENZO12

Sceptic001 wrote: »

Before worrying about the inconvenience of a bond maturing on a weekend, are you aware of the £85k FSCS limit? If not I would research it, starting here: http://www.moneysavingexpert.com/savings/safe-savings

Not worried at all, if the Nationwide goes tits up, i own a hut, a gun, and a crate of tinned food, it will be all out "tin hat brigade"!

ENZO12

alanq wrote: »

No you can't. You could do an instant transfer into an eSavings or eSavings+ account but the MySave account is treated as if it is held with an external organisation and will take a few working days to arrive.

http://www.nationwide.co.uk/search/DisplayArticle.aspx?article=1606

Cheers mate,

I have an e-savings plus account paying 2% gross; currently zero balance, aniversary every June i think. Would i earn interest in this account for the two days?

(((500k/100*2)/100*80)/365*2)= £43.83, better than nowt?

Sceptic001

ENZO12 wrote: »

Not worried at all, if the Nationwide goes tits up, i own a hut, a gun, and a crate of tinned food, it will be all out "tin hat brigade"!

Yes, you make a good point. FSCS would be unable to cope in the event of a financial melt-down which takes out the likes of Nationwide . But my view is that I am paying indirectly for the FSCS cover, so I might as well use it.

Also, as the recent Tesco screw-up showed, it is a good idea not to rely on a single financial provider for all your savings.

ENZO12

Sceptic001 wrote: »

Yes, you make a good point. FSCS would be unable to cope in the event of a financial melt-down which takes out the likes of Nationwide . But my view is that I am paying indirectly for the FSCS cover, so I might as well use it.

Also, as the recent Tesco screw-up showed, it is a good idea not to rely on a single financial provider for all your savings.

I am not at all blowing up my own @rse here, but if the Nationwide goes under, theres alot more folk out there who are far more reliant on their cash than i am. If they lose what they have, then mine can go and whistle, i will just have to work harder to get it again, as i have never been given anything in this world!;)

wriggly

ENZO12 wrote: »

if the Nationwide goes under, theres alot more folk out there who are far more reliant on their cash than i am. If they lose what they have, then mine can go and whistle

So you're OK losing £415,000 but upset to miss out on £50 interest for 2 days?

Have you contacted Nationwide to confirm whether they actually transfer out on the Saturday? Maybe they keep paying 3.9% until the next working day.

ENZO12

wriggly wrote: »

So you're OK losing £415,000 but upset to miss out on £50 interest for 2 days?

Have you contacted Nationwide to confirm whether they actually transfer out on the Saturday? Maybe they keep paying 3.9% until the next working day.

They will not go under, that is why i am sure.................:beer:

Cannot see them paying interest when the bond matures..........I never ever like to gift a bank or building society a penny, its about morality, they rob you blind for every cent you graft for!