Natwest ISA interest rate change - get out clause ?

yoinkster

Hi guys,

I too got this letter from natwest today and am probably going to jump ship. More on principal than at the loss of £30 or £50's worth of interest because it's just not the right thing for natwest to do. I'm in a slightly different boat to others here though. I've used up all my £5,640 allowance for the 12/13 tax year and I'm wondering, am I still allowed to move provider? If possible I'd like to move the entire balance (got a few years worth of ISA in there) including this year's allowance. Can I do this? What providers do you recommend? I'd prefer to have instant access and if at all possible monthly interest (I just like to watch the number get bigger :P ) ... what's the best for me?

Cheers, yoinkster.

Dubito_ergo_sum

thanks for clarifying, I will look into transfering the whole balance then. To those of you who have kept an eye on these things in previous years, are banks like energy suppliers ? ie once one of them drops their rate the rest will follow suit ie is it wise to wait until theyve all announced their new rates so i can compare like for like or do they not tend to drop / rise rates around the same time ? i guess im trying to avoid going for say santander only to receive a letter in 2 months time saying theyve dropped their rate to say 2.6% if this makes sense ?

badger09

Dubito_ergo_sum wrote: »

thanks for clarifying, I will look into transfering the whole balance then. To those of you who have kept an eye on these things in previous years, are banks like energy suppliers ? ie once one of them drops their rate the rest will follow suit ie is it wise to wait until theyve all announced their new rates so i can compare like for like or do they not tend to drop / rise rates around the same time ? i guess im trying to avoid going for say santander only to receive a letter in 2 months time saying theyve dropped their rate to say 2.6% if this makes sense ?

I wouldn't say they all follow suit when one drops their rate, but rates are obviously better at the end of the ISA year, to attract people who haven't yet subscribed, and at the beginning, to attract eager beevers

Most of the really good offers rates tend not to be around for very long though.

I'm not aware of any provider who has dropped their 'introductory' rate within the first 12 months. That's not to say they can't, or won't:( If its Instant Access, you can always transfer elsewhere - I expect that's why they tend not to do it

bigelpresidente

I also received the letter from Natwest about the interest rate reduction just after paying in the total allowance for 2012/2013. So I'm really annoyed and I'm looking to transfer about 5 years' worth including this year's to another instant access ISA paying better interest.

yoinkster wrote: »

Hi guy
I too got this letter from natwest today and am probably going to jump ship. More on principal than at the loss of £30 or £50's worth of interest because it's just not the right thing for natwest to do. I'm in a slightly different boat to others here though. I've used up all my £5,640 allowance for the 12/13 tax year and I'm wondering, am I still allowed to move provider? If possible I'd like to move the entire balance (got a few years worth of ISA in there) including this year's allowance. Can I do this? What providers do you recommend? I'd prefer to have instant access and if at all possible monthly interest (I just like to watch the number get bigger :P ) ... what's the best for me?

Cheers, yoinkster.

torchie

I think I have read through this thread but need to make sure I have not missed something. Like many, I am proposing to transfer my Nat West E-Isa elsewhere and (despite some negative comments about customer service) would probably choose Santanders 3.3% Instant Access. However, I have already used my 2012/2013 allowance on the Nationwide Flexclusive ISA and the way I am reading things on here, the Santander account cannot be opened with previous years transfer money only - is seems there has to be a deposit for the current tax year as well? Please tell me I am wrong!!

rb10

torchie wrote: »

I think I have read through this thread but need to make sure I have not missed something. Like many, I am proposing to transfer my Nat West E-Isa elsewhere and (despite some negative comments about customer service) would probably choose Santanders 3.3% Instant Access. However, I have already used my 2012/2013 allowance on the Nationwide Flexclusive ISA and the way I am reading things on here, the Santander account cannot be opened with previous years transfer money only - is seems there has to be a deposit for the current tax year as well? Please tell me I am wrong!!

You are wrong - just open the Santander account with a zero balance, and fill in a transfer form to transfer the balance from Natwest.

torchie

Thank you - sometimes it is nice to be told you are wrong! I shall do the Santander application straight away.

MarkyMarkD

A variable rate is a variable rate and can be varied at any time. It isn't an existing ISA provider's responsibility to be concerned about the fact that other ISA providers pay differential rates for new ISA contributions rather than transfers.

It is possible to undertake a self transfer, by simply withdrawing the £100 and starting up a new ISA with a different provider which does not allow transfers, but I wouldn't particularly recommend it.

HMRC are definitely tightening up on double ISA subscriptions. A few years ago, they simply wrote to customers who double subscribed saying (not in these words) "You are naughty, but we will let you off this time". They are now not giving people a single chance - they are instructing the second ISA provider to void the ISA and return the funds.