Nationwide Flexclusive ISA - 4.25%, instant access

david72

I'm not sure how this account can really be called "instant access" when for most people it will only be accessible for half a day a week (unless you're one of the small minority lucky enough to work close enough to a Nationwide branch that you can visit (and put up with the inconvenience of wasting time queuing) during your lunch break).

Amongst the reasons for inventing internet banking were to reduce unnecessary visits to branches, to save time by allowing ID to be checked electronically rather than in person, and to allow the website back-ends to serve hundreds, if not thousands, of people per second - at any time of the day or night, rather than have to queue up for a small handful of tellers in branches during very limited opening hours (evening, Saturday afternoon or Sunday opening virtually non-existent).

Of course internet banking is not necessarily suitable for everybody, but for many people it is considerably more convenient than having to struggle to a branch. I can't help but cynically think that the main reason for introducing such a branch-only account is to attempt to generate good publicitly, while realistically knowing that only a minority will be able to take up the offer. Rather than being rewarded for my loyalty, I feel insulted.

One thing that I would like to see MSE campaign on would be that there should be a legal requirement for savings providers to be obliged to make the same savings account accessible via all channels (internet, branch, phone, post, etc) unless there are genuine logistical reasons why it cannot be done. It seems ridiculous that only a few years ago, the best accounts were only available online because of the cost efficiencies (disadvantaging those with difficulties using computers (such as the elderly, something that will happen to us all one day)), yet now strangely the best accounts are only available in the more costly branches? Something doesn't add up!

gt94sss2

Details of the account are now at http://www.nationwide.co.uk/savings/cash_isa/flexclusiveisa/introduction.htm

Regards
Sunil

Uplink

They must know something that the other banks don't. 4.25% is so much over the top rate of the rest of the banks that I have to wait and see. It may be a bet I don't want to make with myself. If they decide to take a swim in the Styx, your 4.5% is equal to 0, and while you wait for the FCSC to pay out, your money doesn't even earn the 0.5% you'd get if you didn't shop for a decent rate.

On the other hand, it may just be a different way of saying "We'll give you 100 pounds (but not upfront, but spread across the term of the account and dependant on how much you actually put in) if you'll sleep with us instead of your current mistress", since they don't accept transfers of other ISAs into this account, in which case don't mind my paranoia

rb10

david72 wrote: »

I'm not sure how this account can really be called "instant access" when for most people it will only be accessible for half a day a week (unless you're one of the small minority lucky enough to work close enough to a Nationwide branch that you can visit (and put up with the inconvenience of wasting time queuing) during your lunch break).

... unless you have access to a telephone or internet connection, in which case you can access your money 24/7

. I can't help but cynically think that the main reason for introducing such a branch-only account is to attempt to generate good publicitly, while realistically knowing that only a minority will be able to take up the offer. Rather than being rewarded for my loyalty, I feel insulted

It is my understanding that it's a technological constraint that means this account cannot be opened in branch.

Whilst Nationwide's online banking may look modern and snazzy, it, like mo st (all?) other banks, sits on a platform that is 30+ years old. Once technology catches up, banks will have more flexibility in offering accounts, but until then, many accounts require a degree of human intervention - ie only offering them in branch or by phone.

The help pages on Nationwide's website indicate that, once opened, this account can be managed by phone or internet.

hermante

Uplink wrote: »

They must know something that the other banks don't. 4.25% is so much over the top rate of the rest of the banks that I have to wait and see. It may be a bet I don't want to make with myself. If they decide to take a swim in the Styx, your 4.5% is equal to 0, and while you wait for the FCSC to pay out, your money doesn't even earn the 0.5% you'd get if you didn't shop for a decent rate.

The FSCS (kept being tempted to type FCSC like you did) will pay the interest, and for fixed term accounts you may be able to get the interest for the whole term (at the date of maturity) - so a fixed rate account may actually be safer. They aim to pay in 20 working days, so the losses wouldn't be that great, though if NW did fail I don't know how long it would take.

There's going to be lots of new funds into NW now, so it should be relatively safe. However I'll probably transfer out as soon as there is anything better for 2 years or less, so maybe next April.

KTF

Just got back from the branch now. Opened it over the counter. They hand you the standard ISA application form but tick the box for 'other' and write in Flexclusive ISA.

You fill in the amount you want transferred, account details, etc. on the form and then the back office staff will set it up later today.

The person behind the counter said that it should be visible via online banking in a few days and the passbook should be within the week.

beansy

hermante wrote: »

The FSCS (kept being tempted to type FCSC like you did) will pay the interest, and for fixed term accounts you may be able to get the interest for the whole term (at the date of maturity) - so a fixed rate account may actually be safer. They aim to pay in 20 working days, so the losses wouldn't be that great, though if NW did fail I don't know how long it would take.

There's going to be lots of new funds into NW now, so it should be relatively safe. However I'll probably transfer out as soon as there is anything better for 2 years or less, so maybe next April.

This is where the problems really lie. Like for my oh and myself, we have just transferred a large sum of money from our existing ISA's to Santander - rate chasing - which we moved from Santander to Nwide last year! So really the banks, can't bank on anything (excuse the pun) except for the fact that those of us with money are obviously going to chase the best deals, as I am sure they would themselves!

It is sad that we have to do this, as I am not happy with the effect it can have on the banking industry but at the end of the day, having worked all of my life and now having to work even longer to get my pension, it is my safety net should I burn out and want to jump ship earlier. That said, it isn't a nice feeling knowing others are not in this fortunate position.

Please take this in the spirit it is meant as this is my personal dilemma and I wouldn't want to take this thread off course.

Thank you.

ejv

KTF wrote: »

Just got back from the branch now. Opened it over the counter. They hand you the standard ISA application form but tick the box for 'other' and write in Flexclusive ISA.

You fill in the amount you want transferred, account details, etc. on the form and then the back office staff will set it up later today.

The person behind the counter said that it should be visible via online banking in a few days and the passbook should be within the week.

Holy smoke...that was quick.Did u queue up at 4am?:rotfl:
So are u a new Flexaccount customer?How many DDs should you switch?I'm still not sure whether a full switch from my HSBC is worth it!!

KTF

Was there at 9am when the doors opened as there is a small branch 10 mins walk away.

Am already a Flexaccount customer using it as my main account so no need to transfer over.

veryintrigued

KTF wrote: »

Just got back from the branch now. Opened it over the counter. They hand you the standard ISA application form but tick the box for 'other' and write in Flexclusive ISA.

You fill in the amount you want transferred, account details, etc. on the form and then the back office staff will set it up later today.

The person behind the counter said that it should be visible via online banking in a few days and the passbook should be within the week.

Just 'opened' one too.

I filled in the application form which I assume was a specific one for this account as the staff member had to double check the completed form as 'they've only just arrived'. Am already a current account holder and didnt have to write 'Flexclusive' anywhere.

Frustratingly she advised that the ISA wouldnt be fully open until next week as 'admin staff dont work Saturdays'.

Does this mean I'm losing interest - or will they back date to application date?