Abbey National Postal Mini Cash ISA

Fastflys

I spoke to Abbey National’s ISA Department this evening.

Checked 5.35% rate as the xx% above BofE base rate bonus was only guaranteed until 01st April. I was informed that the guarantee had been extended to 30th April and the guarantee was 0.5% above BofE base rate. As the BofE base rate is 4.75% this makes Abbey’s rate 5.25% not 5.35%.

I was further informed that a new postal ISA will be launched on 01st May but the interest rate will be reduced to 5%.

If the above turns out to be rubbish, please don’t shoot the messenger, I’m only passing on in good faith what I’ve been told.

isasmurf

Fastflys wrote:

I was informed that the guarantee had been extended to 30th April and the guarantee was 0.5% above BofE base rate. As the BofE base rate is 4.75% this makes Abbey’s rate 5.25% not 5.35%.

No, your logic is not correct. A guarantee does not mean that the interest rate will be exactly the base rate + the guarantee. It means the interest rate will not fall below that figure. They can, if they so wish, have the interest rate higher than the guaranteed rate.

Fastflys

Point taken.

So 5.35% is the correct rate after all.

If info about new postal ISA is correct - Best get an account opened before
01st May.

davidcampbell

have heard nothing to this effect (im staff) but will confirm or deny it with a post tomorrow evening.

watch this space

DC

davidcampbell

sorry didnt have time to check it today. watch this space again

:rolleyes:


DC

clock24

Surely it won't make any difference opening an Abbey ISA account before 1st May, as the account will revert to whatever the 'general' cash ISA rate is (as they are variable) on that date.
If a 'new' postal ISA is opened at 5% then all existing postal ISA's will become that rate as well - or am I mistaken? Will be a very complicated set-up for Abbey if they have different rates depending when you opened your account.

Fastflys

Normally I would agree with you. However I was informed by Abbey’s ISA Department that anyone opening a Postal Mini Cash ISA before 01st May will continue to receive the higher rate of 5.35% . For how long? Well that’s a question they wouldn’t/couldn’t answer.

Like I said above, don’t shoot the messenger.

As Abbey’s Postal ISA is a reasonable account for a lump sum deposit, today my wife and I drove to our local branch, opened two Postal ISA accounts and deposited £3,000 in each.

No application forms to fill in – All done by Abbey staff on their computers.
Do remember to take the required proof of identity and your National Insurance number.

Money from our Abbey Current Account was transferred instantly, both accounts were opened on the spot, receipts and new ISA account numbers supplied and informed that Welcome Packs will be posted to us in due course.

With regard to the new Postal ISA and reduced interest rate – Abbey branch staff had no knowledge of it so I guess time will tell.

blinko

i think if base rates rise which i think will happen around may05 time or just after a 5% ISA will not be a viable product for abbey.

acw

I opened an Abbey postal ISA today and was told that any money invested whether 'new' money or transfer from my Mini Cash ISA is limited to £3000 per year. Therefore you cannot as Martin suggests transfer up to £21,000 from ISAs already held and get 5.35% on it all - they would only accept £3000 until next April so the net gain from transferring from a mini ISA would only be the difference between 5.35% and the rate you were previously getting in the already held cash ISA, and that on a maximum of £3000.

isasmurf

I think the customer services person you spoke to was confused about the ISA rules. I guess they thought that transfers counted towards the annual limit when it doesn't. Section 18 of the Abbey ISA T&C says "There is no maximum amount that can be transferred"

I'd go back and speak to someone else you'll probably get a different answer.

mooch

I can confirm that there is no limit on transfers as I transferred 2 full mini ISAs just recently and plan to add a couple more.

Just file in a form for each transfer. Takes a while though. 2-3 weeks from application to confirmation.