Nationwide Flexclusive ISA - 4.25%, instant access

psychic_teabag

Why do you need the interest monthly ? It's instant-access, so if you want to withdraw a monthly income you could just take it from the capital.

YorkshireBoy

dggar wrote: »

Has anyone managed to work out when interest is paid on this account? I can't seem to see it in the publicity from Nationwide.

I would be looking for intest to be paid monthly.

Due to the absence of a 'gross p.a.' figure being provided in the press release I would deduce that it will pay interest annually.

dggar

psychic_teabag wrote: »

Why do you need the interest monthly ? It's instant-access, so if you want to withdraw a monthly income you could just take it from the capital.

To save me the trouble of having to go to the branch every month or having to phone them. I don't want to draw down from the capital
I want to have the interstest paid monthly. I'd rather have it as as an automatic payment. Not that it is really any of your business as to how I like to receive payments.

psychic_teabag

Okay, so I guess you also need an option to have it paid out to a different account, rather than into the ISA. You didn't mention that additional constraint.

But given how much better the interest is on this account than the others, there might be a case for taking the account even if it doesn't pay the interest the way you want. eg it might be better to hold back some of the capital in an ordinary savings account, and draw the interest from that capital. (In the same way as Martin suggests for fixed-term accounts.)

But that would depend on how much you plan to put into the ISA, and how frequently, and that's none of my business either.

psychic_teabag

dggar wrote: »

I don't want to draw down from the capital

I don't think it would make much difference in practice : the interest at the end would more or less replace what you've drawn out. It would work in much the same way as the "Do you live off savings interest?" section in http://www.moneysavingexpert.com/savings/fixed-rate-savings except that it's easier in this case because you don't have to split the interest "pot" into a separate account.

evenasus

rb10 wrote: »

Is the aim of this to attract new customers though? It is surely cheaper to retain existing customers than to attract new ones, and this will help to make their existing customers feel valued by Nationwide.

Doesn't make me feel valued.

Would I be considered a loyal customer by them I wonder?

Banked with them for over 20 years and at one point had £250,000 in savings with them. :eek: That was before Northern Rock financial fiasco.
I keep under the £85,000 with them now of course.

Now I'm retired, only my state pension is paid in, although there are often large sums of money pass through my account but not ever month.

Oh well, I'll go with the Santander or Cheshire fixed 4%

chopperward

YorkshireBoy wrote: »

Due to the absence of a 'gross p.a.' figure being provided in the press release I would deduce that it will pay interest annually.

Won't this be interest free if it's an ISA?

YorkshireBoy

chopperward wrote: »

Won't this be interest free if it's an ISA?

Yes (but I didn't mention tax or 'net' interest).

My point was that if it paid interest monthly they'd be providing both an AER and a gross p.a rate, and the gross p.a. rate would be slightly lower due to compounding.

innovate

chopperward wrote: »

Won't this be interest free if it's an ISA?

Wouldn't be much use if you didn't get any interest!

The 'free' bit is the tax on interest

On interest for normal savings, you have to pay tax (unless you are not a tax payer, in which case you can claim back the tax).

On interest for ISAs, no tax is deducted from the interest your ISA earns.

chopperward

snowcat53 wrote: »

Yes looks like a good deal but note the conditions about having been paying in 750 pcm for at least 3 months,or transferring an account in. That means a delay of at least 3 months before you can get the 4.25% if the former, rather less if the latter

Quote

To qualify as a main FlexAccount holder, you have to hold a FlexAccount with a Visa debit card (not a cash card+) and:

• Pay in £750 or more each month (excluding internal transfers) for the last 3 months, or:
• Agree to complete an Account Transfer from an account (non Nationwide) using our Account Transfer Service or have done so in the past four months.

To continue to be eligible for Flexclusive ISA, customers must meet all of the criteria above, as well as continuing to deposit at least £750 or more each month into the FlexAccount.

I'm not sure about some of the wording on the above. The bit where it says in bold 'To continue to be eligible for Flexclusive ISA...' it states that 'customers must meet all of the criteria above'. Does this mean that you have to do one or the other or meet all the criteria? ie. pay in £750 and complete an account transfer.

I qualify by paying in £750 for 3 months and will continue to do so.