5% one-year fix, Nottingham BS?

jamesallen

Hi everyone.

I've seen a very good rate at the Nottingham BS - 5% fixed until the end of this tax year, and I can save up to £470 per month.

However, I'd like to check I'm not missing something before I apply. Do any problems leap out at anyone?

http://www.thenottingham.com/savings/starter-isa-issue-2/

OneADay

Its regular saving with max of £470 investment into the ISA.
At end of 12 months, your interest is 2.61% approximate by my calculations.
So the 5% headline is misleading.
If you are only putting upto £470 into it per month, then its ok - if you have a lump sum to invest, better to do something else.

thenudeone

OneADay wrote: »

Its regular saving with max of £470 investment into the ISA.
At end of 12 months, your interest is 2.61% approximate by my calculations.
So the 5% headline is misleading.

How is it misleading?

You get the daily equivalent of 5% per annum on every penny that's in the account for every day it's in the account.

Do you expect them to pay interest on money that you haven't even put in the account????????

The_Enforcer

Does anyone know if it's possible to set up a standing order to make the subsequent monthly payments after the initial visit to a branch to open the account, or do you have to physically go into a branch to make each payment by cash/cheque?

thenudeone

The_Enforcer wrote: »

Does anyone know if it's possible to set up a standing order to make the subsequent monthly payments

If it's anything like their e-saver accounts, payments in can be made directly by BACS/Faster Payments/Standing Order.

thenudeone

The website says "Branch only" but if this is the right ISA for you, it might be worth completing the application form found here: http://www.thenottingham.com/uploadedFiles/Download_Library/INV211_0911%20Cash%20ISA%20Application%20Form.pdf and posting it to Head Office.

I have definitely opened Building Society "Branch only" accounts this way before (I can't remember if it was with The Nottingham).

OneADay

thenudeone wrote: »

How is it misleading?

You get the daily equivalent of 5% per annum on every penny that's in the account for every day it's in the account.

Do you expect them to pay interest on money that you haven't even put in the account????????

That is why I said

OneADay wrote: »

Its regular saving with max of £470 investment into the ISA.
At end of 12 months, your interest is 2.61% approximate by my calculations.
So the 5% headline is misleading.
If you are only putting upto £470 into it per month, then its ok - if you have a lump sum to invest, better to do something else.

The 5% is eye catching but not worth it for someone like me who wants to stick away over £5k.

jamesallen

OneADay wrote: »

That is why I said



The 5% is eye catching but not worth it for someone like me who wants to stick away over £5k.

That's a good point actually. I will dripfeed of course, but I am thinking of fixing anyway so I will see how that measures up.

OneADay

jamesallen wrote: »

That's a good point actually. I will dripfeed of course, but I am thinking of fixing anyway so I will see how that measures up.

I stuck away some ISA money with M&S for 3 years at 4% (two years ago, due to mature next year).

Can't find anything like that at present and not interested in fixing for more than 1 year, expect rates to go up.

Invested £5k odd for last year with Halifax and cashed it in early, rates were crap. Still not decided what to do this year - just rushed down to Nationwide, it was closed :mad:.

amictus

thenudeone wrote: »

The website says "Branch only" but if this is the right ISA for you, it might be worth completing the application form found here: http://www.thenottingham.com/uploadedFiles/Download_Library/INV211_0911%20Cash%20ISA%20Application%20Form.pdf and posting it to Head Office.

I have definitely opened Building Society "Branch only" accounts this way before (I can't remember if it was with The Nottingham).

Has anyone else tried this method? Should I have a go?

There's no mention of how to fund this account (initial opening amount) on the application form? Send a cheque payable to yourself along with the form perhaps?

One last question... does anyone know if the interest in this account is calculated daily? If so, I reckon a monthly payment of £470 at the start of each month until end of this tax year works out at about £150 total interest. Sound right? The interest calculator on the website quotes £282 but that obviously assumes a lump sum payment.

Thanks!

Jevvers

This calculator allows you to start from 0 and add monthly contributions, giving a total at the end of the year of £5771 = £131 interest.