Nationwide Flexclusive ISA - 4.25%, instant access

Hooloovoo

KTF wrote: »

If the BoE rate falls - although that is almost certainly not going to happen - then the ISA will track it down.

If the BoE rate goes up, the the ISA will track it up.

Which is one of the reasons I don't see the point in getting any fixed rate ISAs this year.

The Flexclusive ISA has a better rate than many fixes at the moment. And it is practically fixed by virtue that the base rate is highly unlikely to drop any further. It will only take a couple of 0.25% base rate increases before the Flexclusive ISA will be out performing the fixes available right now.

Gordon_the_Moron

Hooloovoo wrote: »

Which is one of the reasons I don't see the point in getting any fixed rate ISAs this year.

The Flexclusive ISA has a better rate than many fixes at the moment. And it is practically fixed by virtue that the base rate is highly unlikely to drop any further. It will only take a couple of 0.25% base rate increases before the Flexclusive ISA will be out performing the fixes available right now.

It already outperforms the best 3 year fix, it falls only 0.1% short of the best 4 year rate and a single 0.25% increase would put it level with the best 5 year rate. Don't forget if you go for the fixes you lose out if a better deal comes along either by not getting it or losing interest as a breakage charge. Whilst base rate + 3.75% is available instant access I won't be touching any of the fixes unless something amazing comes along.

Gordon_the_Moron

My mistake, it doesn't outperform the best 3 year fix, it matches it!

ylesia

Paul_Varjak wrote: »

Irrespective of what query you were attempting to answer, it was incorrect to suggest that this ISA could earn at least 4.25% until 31/10/2013.

LOL - if you want to pedantic!! I was taking it as a given that the base rate will not go lower than 0.5% but of course I know it 'could'!

I for one was very happy to see the clarification on what part of the rate was guaranteed to be above 1.5% the base rate, as I had my doubts after previous posts.

Hooloovoo

Gordon_the_Moron wrote: »

It already outperforms the best 3 year fix, it falls only 0.1% short of the best 4 year rate and a single 0.25% increase would put it level with the best 5 year rate. Don't forget if you go for the fixes you lose out if a better deal comes along either by not getting it or losing interest as a breakage charge. Whilst base rate + 3.75% is available instant access I won't be touching any of the fixes unless something amazing comes along.

I thought that was the case but I didn't have time to check the actual figures, and I didn't want to state something that might have been wrong.

Thanks for adding the extra info. I agree all the fixed rate deals are shocking at the moment.

Paul_Varjak

ylesia wrote: »

LOL - if you want to pedantic!! I was taking it as a given that the base rate will not go lower than 0.5% but of course I know it 'could'!

I for one was very happy to see the clarification on what part of the rate was guaranteed to be above 1.5% the base rate, as I had my doubts after previous posts.

Just to be pedant again - it was not clear from your original post what query the press release answered for you - other than your apparent perception that the rate of 4.25% is guaranteed until 31/10/2013.

Paul_Varjak

hermante wrote: »

Hold on, what? Are you saying that it is only correct that the ISA will earn at least 4.25% until 31/10/13 if there is no fall in BOE rate?

The base rate is currently 0.5% - it cannot fall much lower.

Paul_Varjak

Hooloovoo wrote: »

Which is one of the reasons I don't see the point in getting any fixed rate ISAs this year.

The Flexclusive ISA has a better rate than many fixes at the moment. And it is practically fixed by virtue that the base rate is highly unlikely to drop any further. It will only take a couple of 0.25% base rate increases before the Flexclusive ISA will be out performing the fixes available right now.

I agree. This deal is too good to miss no matter which way the base rate goes; in fact, I think it is so good, there is no guarantee that this account will be available to new savers in six months time or even tomorrow!

Paul_Varjak

innovate wrote: »

To be pernickety, it's wasn't Martin who alerted people to this ISA, but a poster by the nick of rb10

Invariably, I find more up-to-date info on the forums than on the main MSE site. Greatful to Martin for hosting the forum, though!

Having seen some of your other posts, I wondered if you were ever a weather presenter on Five?

ylesia

The_Enforcer wrote: »

Taken from the Nationwide Website:

- A variable rate of 4.25% AER tax-free including an introductory fixed rate bonus of 2.25% until 31 October 2013

- Includes the reassurance of a Rate Promise to pay at least 1.50% above the Bank of England Base Rate until 1 January 2014


It has occurred to me that as it is referred to in the context of the "AER" rather than the "underlying rate", whether the rate promise means that in the near future Nationwide could reduce the variable underlying rate to, say, 0.5%, leaving the AER at 2.75% with the bonus - still more than 1.50% above the BoE base rate? After the bonus period has ended, they could still comply with the rate promise by raising the underlying rate to 2%.


I'm probably being too sceptical here, but I thought I would raise this anyway and expect to be corrected shortly!

Cheers,
TE

Quoting for Paul, this is the post I was refering to. I am not going to quote all the subsequent replies but this is on page 9 or 10 so feel free to have a look.