Natwest e-isa

doberryfirkin

I have had an e-ISA with Natwest for 3 years and have finally thrown the towel in and transferred. I got fed up with having to grovel / rummage around to find out what the interest rate was and then I got a letter telling me the rate was dropping. All this while they advertised great rates for 'new' customers. Frankly I would give them a miss - it just isn't worth the hassle. They are a publicly owned bank and have only one thing in mind - getting your money.

meggsy

3.32% AER (variable) if your balance is £30,000 or more
3.07% AER (variable) if your balance is £10,000 or more but below £30,000
2.82% AER (variable) if your balance is less than £10,000

Seems the 3.5% has gone now, but still above the rates for existing e-isa savers

PauliPauli

meggsy wrote: »

3.32% AER (variable) if your balance is £30,000 or more
3.07% AER (variable) if your balance is £10,000 or more but below £30,000
2.82% AER (variable) if your balance is less than £10,000

Seems the 3.5% has gone now, but still above the rates for existing e-isa savers

... its only "cosmetic", the true gross monthly rates are still the same

escapee

meggsy wrote: »

3.32% AER (variable) if your balance is £30,000 or more
3.07% AER (variable) if your balance is £10,000 or more but below £30,000
2.82% AER (variable) if your balance is less than £10,000

Seems the 3.5% has gone now, but still above the rates for existing e-isa savers

The letter I received states that after 14 May 2012 the new e-isa rates for accounts opened on or before 14 May 2009 are:

£30k+ = 2.97% gross p.a (3.01% APR)
£10k to £29k = 2.72% gross p.a (2.75% APR)
> £10k = 2.72% gross p.a (2.75% APR)

Rates down from 3.21%, 2.97% and 2.72% (gross p.a) respectively.

meggsy

escapee wrote: »

The letter I received states that after 14 May 2012 the new e-isa rates for accounts opened on or before 14 May 2009 are:

£30k+ = 2.97% gross p.a (3.01% APR)
£10k to £29k = 2.72% gross p.a (2.75% APR)
> £10k = 2.72% gross p.a (2.75% APR)

Rates down from 3.21%, 2.97% and 2.72% (gross p.a) respectively.

Yes those are the rates for us, their existing customers, the rates I quoted are for new customers. NatWest explanation for dropping the rate is ...

"I understand your disappointment with the reduction in the interest rate and realise that some of the commercial decisions banks (and other companies) take can have a negative impact on customers. We regularly review our rates taking a number of factors into account including the current market environment and recent competitor changes. That being said, I do believe this is still a competitively priced product as it does not include any form of short term bonus element as many others do" :mad:

http://www.natwest.com/global/customer-charter/g1/ideas-bank.ashx?path=/embed/ideas-bank/ideas-bank-b90b9f29/

EdGasket

The trouble is that even with the reduced rates, you can't get much better on an instant access ISA. Also is it worth the hassle of moving for an extra 0.25% or so? You still end up losing real value compared to inflation. If you don't need the money instantly, I would invest in IL gilts, gold, and shares with decent asset backing; all of which provide some protection from inflation.

lisyloo

I would invest in IL gilts, gold, and shares with decent asset backing; all of which provide some protection from inflation.

But not necessarily from income tax or CGT.

EdGasket

lisyloo wrote: »

But not necessarily from income tax or CGT.

Um yes actually in a stocks and shares ISA. There are IL gilt funds, and gold funds.