The Nationwide 3.1% Online Cash-ISA Has Landed

PotatoPotato

ok just applied for both online. busy the next few days

Whats the process? I wait for everything to come through the post (roughly 10 days) and then take the ID and stuff in to a branch?

jamesd

Here's a list of funds that can be held within a S&S ISA, sorted with highest yield at the top (interest rate or dividends, whichever applies). The ones with a yield of at least 9% are:

Marlborough High Yield Fixed Interest: 10.41%
Invesco Perpetual Global Financial Capital: 10.15% (increases capital value, not paid out as interest, too recently launched to be a really good choice)
Premier European Optimum Income: 9.48%

For all of them the capital values will vary, as will the yields. Do not pick a fund based on yield alone, capital value change risk matters with these investments.

jennifernil

PotatoPotato wrote: »

ok just applied for both online. busy the next few days

Whats the process? I wait for everything to come through the post (roughly 10 days) and then take the ID and stuff in to a branch?

yes, you will get all the paperwork in the post. If they require ID, you can take it to a branch or post it.

The transfer forms etc can also be handed in or posted.

neil324

Anyone confirm please.

I have just opened one of these. Although i had not yet used this years allowance i had transferred into the Halifax ISA reward on the 80th April 2010.

Am i correct in thinking that i should not of opened a new ISA.

DragonQ

3.1% is nice but I'm currently getting 3.3% on this year's allowance (Santander) and 3.2% on previous years' allowances (Halifax Reward), both instant-access. I'm going to wait until I can at least match that for next year...hopefully!

le_loup

neil324 wrote: »

Am i correct in thinking that i should not of opened a new ISA.

No.
You have not opened a NEW ISA this year, you have transferred. With the NW ISA you have opened this year, you can put in up to the limit or transfer the Halifax one or both ... or neither!

neil324

le_loup wrote: »

No.
You have not opened a NEW ISA this year, you have transferred. With the NW ISA you have opened this year, you can put in up to the limit or transfer the Halifax one or both ... or neither!

I just called them anyway and they said i can because i have not used my allowance.

But i don't intend to transfer the Halifax until the 8th April to get the bonus, which will take us into the new tax year, and might not if they bring out a better rate.

Still a bit confused.......

Mr_K

Doesn't seem that easy to withdraw from this ISA or am I missing something ?

You can't withdraw direct from it, you need a cashbuilder card/invest direct account. The only way to withdraw from these is via transfer to another Nationwide account (!), £300 quid a day out of a cash machine or by requesting a cheque -very archaic and not online or instant access imo.

Nationwide always try and complicate simple things, presumably to make access to your money more difficult. They're quite happy to accept money IN to Invest Direct by faster payment, however they won't even do Bacs out.

fwor

Mr_K wrote: »

Doesn't seem that easy to withdraw from this ISA or am I missing something ?

If it's like their previous e-ISA account, it's trivial to just go online and transfer from there into your current account (in my case a FlexAccount), and from there wherever you like. Doesn't seem too hard to me.

MattLFC

Yep, and that's precisely why they call it an online-ISA, because you manage it online, and presumably, Nationwide have tried to ensure things are easier by requiring you to hold a FlexAccount or similar, thus allowing Faster Payment transfers, and debit card access.

I have the same with my eSaver (some of the staff in Santander still ask for my card, even though it's an eSave). I have no issues, I just transfer to/from my Santander Current Account thus using faster payments (Santander isnt my main current account) or sometimes just use the Santander Visa card for purchases etc...

Cutting out branch control, cash cards etc, means it lowers the cost to the bank, and thus is means they can generally offer you a better rate.

Come to think of it, I don't have a cashcard with my Barclays Golden ISA either, and that's not even an online-ISA.

If you can't deal with the online element, the lack of a cashcard, the having to transfer via a current account first (which is beneficial, because transferring to saving accounts can take 3 working days, current accounts are near-instant with FP), then don't go for it; but unless you learn to live with it, you may find it hard to take advantage of the best rates in the future, because most banks will offer their best rates on the cheapest accounts to run.