Natwest e-ISA

tipsychick

I just wondered if anyone had experience of this one, as I can't see much discussion anywhere on it:

http://www.natwest.com/personal/savings/g2/isas/e-isa.ashx

I have just over £30K to transfer in, so would qualify for the 3.5% rate and I do want instant access.

I know it's naughty of them not to add the bonus until the 16th of the month after you open the account but I thought that would be fairly easily mitigated by opening on, say, Friday 30th March. By the time they've received the transfer forms in the post and with the Easter Bank Holiday in between, I doubt the transfer would complete much before the 16th April anyway.

Am I missing something obvious?

MiserlyMartin

I don't know why MSE haven't covered this ISA. They must have taken the eye off the ball. I think the same as you about the bonus. I plan to open this one with the full allowance on April 6th. There will only be 10 days at 2% before the bonus kicks in. Luckily the bonus is 1% so you'd still get 2% before the 15th so not as bad as some other providers 0.5% + 2.8% bonus! Its a sneaky trick though, to get the headline rate up but to force you onto the lower rate for some time if you open it at the wrong time of the month. I guess this is because savers have got so savvy now to transfer the ISA out in plenty of time before the bonus ends, and with rising rates, this will be happening all the more often as new ISAs launch with better rates. They are locking you onto poor rates at the start of the ISA!

The question is, is the account 'open' if it has not been funded? Your money transferring in won't hit the account until sometime in April so if the account is not 'open' before then your bonus won't start until May 15th!

The AA (Midshires) ISA also is sneaky in that you can only deposit via cheque so you lose interest - they insist not paying interest until the next day after its drawn. Dirty tricks...

nrsql

It's the 15/16 of the next month after the account is opened - not the next 16th. I think opening on April 6 will get the bonus May 15/16.

MiserlyMartin

Exactly as I'd thought. I applied online and can confirm to tipsychick and myself!) that once the account is accepted it is open, as you get an account number and cort code at the end of the application. Therefore I expect the bonus period to start on April 15th.

Its far better than the AA online applying.... the AA 3.5% doesn't let you specify which tax year you want to subscribe in. The only thing that didn't go smoothly was the subscription amount.... It asks if you are subscribing for 2011-2012 or 2012-2013 tax year. I put 2012-2013 and put the amount as £5640. It wouldn't accept that so I put £5340. I'm going to print off and fill in a transfer form for my other ISA to transfer in so I can get the 3.5%:)

Razorbill_2

This ISA seems a good deal.

My current ISA is with Halifax, which I have re-designated as a Online Saver from the previous Direct Reward 4 on 19/3/12.

Can anyone tell me if I can open this Nat West ISA before 31 March (so I can profit from the bonus rate from 15/16 April) without infringing any ISA rules? I don't intend to fund this ISA with new money or a transfer from Halifax until the new tax year.

Many thanks.

evenasus

nrsql wrote: »

It's the 15/16 of the next month after the account is opened - not the next 16th. I think opening on April 6 will get the bonus May 15/16.

I think you're right.

From Nat West website...

The bonus is added to the standard variable interest rate and starts on the 15th or 16th day of the next month after your account is opened

DragonQ

It isn't clear whether having over £30,000 in the account will give you 3.5% on the entire balance or only 3.5% on anything over £30,000. If the former is true, then it was probably ignored because not too many people have that kind of money to transfer, I'd imagine. If the latter is true, then there are better accounts out there unless you have a huge sum of money accumulated from past ISA years.

[quote=MiserlyMartin]Its far better than the AA online applying.... the AA 3.5% doesn't let you specify which tax year you want to subscribe in.[/quote]
It's true that the AA's online banking system is too basic and contains sweeping statements that are not necessarily true (e.g. "we must receive your cheque by the end of the tax year"). However, it is possible to tell them what tax year you want your first deposit to count towards if it's made by cheque.

jen245

Can you open this ISA, and just leave it empty until the next tax year? Im fully subscribed this year, and will only start funding it from around the 16th April anyway

AirlieBird

nrsql wrote: »

It's the 15/16 of the next month after the account is opened - not the next 16th. I think opening on April 6 will get the bonus May 15/16.

evenasus wrote: »

I think you're right.

From Nat West website...

The bonus is added to the standard variable interest rate and starts on the 15th or 16th day of the next month after your account is opened

No thinking about it. The example on the page linked to in the first post confirms it - Open 10 March > Bonus starts 16 April.

drlabman

I'm fully subscribed this tax year but am considering this ISA for next year, assuming it's still available then. I don't like their crafty tricks with regard to delaying bonus interest - it's not the first time they've done this kind of thing. However, I presume the thing to do is to open the ISA on April 6th with £1 only and add the remaining £5K-ish on May 16th. Meanwhile my £5K will be earning interest (albeit taxed) where it currently is. This all assumes the ISA is still available on April 6th, of course.

pardal51

I am planning to apply online today and open an e-ISA for tax year 2012-2013 (as there is an option during the account opening process). Will complete a transfer form and ask them to transfer funds when my Halifax ISA Saver Direct (previous Direct Rewards Isuee 4) matures - 17 April 2012.

Hope this is okay.