Nationwide Flexclusive ISA - 4.25%, instant access

le_loup

The Online ISA does have a condition (66 in my printed booklet) saying that transfers from your online ISA to another cash ISA product (excluding another online ISA or e-ISA)must be done using a paper application form and cannot be done from your card account.
No such restriction appears on the Flexclusive T&Cs.

Uplink

For your sakes, I hope this isn't a bug in their website. For I've seen this bug with another institution: The website allows me to withdraw and fund a fixed rate ISA that is supposed to be under lockdown. I actually managed to get money out by mistake, and had to call them to undo the operation and reset my ISA contributions. Two months later, the bug is still there. Now my "no operations" ISA has a withdrawal and a deposit in the balance sheet. Neat, huh? I'm keeping the call reference number around, in case they come cashing me.

xylophone

Under ISA in the link it says
We strongly advise you to read all of the terms and conditions as you will be legally bound by them.

Subject to any additional conditions for your account, the following conditions will apply.

Then all the general and particular conditions are set out.
It then states: If there is a conflict between the general conditions and these ISA conditions, the ISA conditions will take priority.





The Flexclusive is a CASH ISA

It appears to be branch based with a passbook so is not an on-line or e-isa.

People seem to have been transferring on-line and e-isas into it despite the fact that a paper application would appear to be required.

It is possible that this should not be permitted but that a programmer forgot to put in a preventive?

le_loup

Other Nationwide passbook/branch based accounts have online facilities. For example, Loyalty Saver and Flexclusive Regular Saver.
... however the main point is that the T&Cs of the Flexclusive ISA do no say you can't transfer in ... the limit is £5,000,000. So if they come back and say "you can't do that"; a) they gave you the facility to do it and b) the T&Cs don't say you can't. Case dismissed!

sara_bande

Overall, it is disappointing that NWD are also using these tactics (e.g. keep introducing and withdrawing accounts, limited bonus periods) in order to make money. At one time, I would have had more respect for NWD limting the Flexclusive ISA to this year's ISA allowance because it makes sense that they do not leave themselves open to savers making this 4.25% from tens of thousands of ISA allowances from previous tax years. However, now there is less of a feeling of collective membership, and I too feel inclined to simply go for the best rate even if it means dodging the rules they may well have tried to implement.

Patsy80

As someone who has been banking with Nationwide for over 25 years, I am becoming more and more disappointed and frustrated by their tactics. Firstly, they have informed me that I am no longer eligible for their free travel insurance, as I no longer put £750 into my Flexaccount, (which is my main, and only, current account; unfortunately, as I only have a state pension and a miniscule private pension, I do not receive that amount each month! Would that I did!) The aforementioned travel insurance is not worth a lot but it is the principle that counts; I have held virtually all my savings with them for decades but I am obviously no longer a valued customer to them, although anyone who is able to channel £750 through their Flexaccount is, even though they probably have a lot more money going into another current account with someone else! To add insult to injury, they tell you that, based on their criteria, you are eligible for the travel insurance until a specific date (when it will be withdrawn as you no longer have the £750 paid into your account) but don't send you a copy of the policy conditions (which are sent to those who are eligible for ongoing cover) so you are tempted to take out cover with someone else, just in case there has been a mistake, and they won't cover you! To add insult to injury, their customer service (which used to be very good) is now rubbish, with a different story each time you ring up! I realise that they are still probably better than the high street banks, but I am still very sad that they have deteriorated to such an extent, as I always used to extol their virtues.

sara_bande

Maybe there's a case for the members getting together somehow? And to remind Nationwide of what matters.

xylophone

The main point seems to be that the Flexclusive is a cash ISA
therefore conditions as at (b) and (c) in my post above (675) should apply?

While there is no condition to prevent transfers into the Flexclusive, the process that should be followed seems quite clear?

That said, people have managed the on-line transfer so as I said before, who knows?

innovate

Patsy80, the £750 do not have to be paid in as a single lumpsum. If you have a current account elsewhere (or get one, they are easy enough to get), you can just cycle, say, 3 x £250 through the accounts on standing orders.

The T&Cs of the travel insurance (and loads more info about it) are online. http://www.nationwide.co.uk/current_account/travel/freetravelcover.htm

I am fully on Nationwide's side that they have a simple set of criteria as to who is eligible for this freebie. If they had to have different criteria for different customers, the associated admin costs would be higher, and no doubt there would be all sorts of confusion on who is eligible for what when.

Paul_Varjak

Patsy80...

If you no longer qualify for the free insurance you will no longer qualify for any Flexclusive benefits. If you have any Flexclusive accounts you will no longer get the Flexclusive rate on those accounts.

Nationwide's policy of £750/month seems pretty fair to me - you have to pay a lot more into some bank accounts to get similar benefits.

For the next few months I will have little work and will not earn enough to pay £750/month into my Nationwide current account but I can easily move money between institutions to maintain that £750/month.

Yes, the banks/building societies to play games with bonus rates, short term offers etc but we can play them at their own game and take advantage!