Nationwide Flexclusive ISA - 4.25%, instant access

innovate

Paul_Varjak wrote: »

I just hope the produce another Flexclusive ISA next April and that the BOE base rate has creeped up by then.

Hey, that's what I call a glass-half-full-attitude! :cool:

Hope your hopes will be exceeded.

Whatever happens, I will ask for your interpretation of the ISA T&Cs in April.

Banana_Man_2

Been following the posts re: transfer from NW Cash ISA to Flexclusive ISA with interest, but only after last weekend when I decided to close an existing NW online cash ISA where the bonus period had ended and transfer closing balance to 12-13 Flexclusive ISA at 4.25% (done on-line).
Initially I thought I had executed a cunning plan as I had been looking at transferring the old ISA balance to Post Office at 3.01% then remembered I had opened the Flexclusive ISA version 1 in April and couldn't believe the interest rate when I looked it up. I've transferred between NW ISAs on many occasions so I didn't have any qualms about closing and transferring the whole wad (several years ISA allowances) into Flexclusive in one hit - until about 2 seconds after pressing the 'submit' button when I thought - OH NO!!, what if the T&Cs specific to that ISA don't allow TX's in.
My worse case scenario going through my head was that the transfer would fail and the cash would end up in a non-ISA account. Unlikely I know, but I was stimulated to hit google and then came across this excellent thread. Many countrary view on the subject (including within NW), but the balance seems to have shifted towards transfers being allowed within the general cash ISA T&C, and being allowed by online banking.
During this week I have been waiting with interest to see what the response from NW would be (hoping it wouldn't be a sharp balance increase in my Flexaccount bottom line!).
That response came today by letter, 'Your ISA Consolidation Application'
blah, blah...
..."unfortunately we are unable to complete your request as transfers in from existing cash ISAs are not accepted into the Flexclusive ISA; this account can only be opened using your new cash ISA subscription for the tax year 2012/12"

The second part seems to ingore the fact that I am transferring to an existing Flexclsive ISA. The first part - the crux - seems to have no basis in their T&Cs.

Wondering whether I should give the 'customer operations' team a call to discuss, or just transfer the lot by online banking?
I've moved £100 2 days ago and Flexclusive account balance went straight up. I think I might make that call as I just want to know the response when I tell them transfers in from existing cash ISAs are accepted on online bank'.
If I get anything useful back I'll let you know.
Anyone already got an answer?

le_loup

Weired!
Let us know what part of the T&Cs they use to uphold their decision.

diy1950

Could it be that as Banana Man has asked to close his online isa and consolidate it into his Flexclusive isa, this is seen as a transfer in. However , if he were to drip feed monies from the online isa to the flexclusive (as is possible via online banking) this is seen as moving money between cash isas which is usually ok.

My understanding of "consolidate" is to "combine a number of financial accounts or funds) into a single overall account or set of accounts" (ref. Oxford Dictionaries)

If he keeps the online isa open with minimal funds he has not "consolidated" it and "transferred" the isa to Flexclusive. He still has 2 isas.

I have moved £500 from my online isa to Flexclusive early this week, but despite agreeing that this is fine according to terms and conditions am still nervous about moving the majority of monies accrued over several years.

I would expect that if I were to move it, the worst case scenario would be for the money to be returned to the online isa but.....???

Paul_Varjak

diy1950:

Any ISA accounts with Nationwide are, collectively, just one ISA, that is in line with the tax rules and with Nationwide's own T&Cs; this allows virtually free movement between Nationwide products with only very limited exceptions (mainly related to fixed term ISA products)

The problem is asking for human intervention in moving ISA monies; staff are simply misinterpreting Nationwide's own T&Cs and refuse to do it.

By Keeping the minimum in the account (rather than closing the account) when you move existing Nationwide ISA monies on-line to the Flexclusive ISA you achieve three things:

1. You don't bring attention to staff who may wrongly claim that what you have done cannot be done.

2. You have kept the account open which can be used to 'feed' the Flexclusive ISA in April 2013

3. The ISA may have a better interest rate than the Flexclusive ISA once the bonus period on the Flexclusive ISA ends, allowing you to move monies back again.

Banana_Man_2

I agree with Paul that I should have chosen to transfer funds into Flexclusive rather than consolidate accounts, consolidation seems to involve greater scrutiny.

Anyway, called NW today to query their refusal to consolidate into Flexclusive ISA. Spoke to a number of people at various levels who all immediately said 'transferring in is not allowed', then referred me to supervisor/manager when I asked them to name the clause in T&Cs which specifically states that restriction.

I was pretty persistent in asking for that - and they did seem to be a lot of long delays on the line when I asked them to read the legal/ISA/Flexclusive T&C (referenced earlier in this thread) to find something relevant, patently they couldn't over the duration of the phone call.

The final manager was adamant that there is a clause in the T&C preventing transfers, but again couldn't reference it. He has raised an internal document request the result of which is that I should be sent the specific clause by end of next week. I wait with interest!

Re: transfers being possible into Flexclusive via Online banking, they initially said, 'That's only possible up to the annual allowance', then when I said that wasn't true (based on what others said they have done here), they said, 'That's not allowed'. When I asked the manager what that meant the answer was, 'the funds over 12-13 annual allowance will be detected at some point in the future by an audit process and returned to source account with any net interest gain being debitted'.
To be honest I'm not convinced the man knew what he was talking about, he was so convinced that transfers ARE NOT POSSIBLE! that he could have just been imagining the controls that surely must be in place to prevent such deviant practices taking place! On the other hand, maybe NW know that transfers are allowed/possible and doing everything possible to put all but the most determined off from taking advantage.
I'll be interested if those who have transferred over 12-13 annual allowance do have any issues, pls keep us posted.

I'll update when I get the promised documentation - hopefully not a generic letter stating 'sorry transfers into Flexclusive are not possible - pls call this number to discuss savings options with us, blah blah blah'.

Paul_Varjak

My experience was pretty much the same as yours; staff convinced they know what the T&Cs say and when unable to find the T&Cs they quote the original press release instead! I did agree with the T&Cs when I opened the Flexclusive ISA but I don't recall having to tick a box saying I agreed with any press release.

One staff member even told me that my monies would be returned and interest deducted and given a penalty as well. I asked her where it said that in the T&Cs? She then claimed the T&Cs were no longer available as the account is no longer available!

If she wants to apply that argument, the logical conclusion is that you now have a Flexclusive ISA that has no T&Cs whatsoever!

kidmugsy

Banana_Man wrote: »

...
Anyway, called NW today ...

I invite you to use the abbreviation NWD for Nationwide - I've seen confusion on other threads with "NW" being used for both NatWest and Nationwide.

le_loup

kidmugsy wrote: »

I invite you to use the abbreviation NWD for Nationwide

,,, and the subject of this thread is ...?

le_loup

Banana_Man wrote: »

I'll be interested if those who have transferred over 12-13 annual allowance do have any issues, pls keep us posted.

I have.
No issues.
But I did it online not by consolidation form.