Quick ISA transfer question

Kips247

Hi Guys,
I currently have an e-ISA with Nationwide (3.10%) - and looking to transfer this to santander 2 yr fixed ISA (3.00% if you have santander123 current account). I think i get interest paid for the e-isa 31st August so therefore i assume i shouldn't move till after that date?

Lokolo

You can move it before but you will get a penalty for doing so.

The penalties will be in the T&Cs.

Kips247

ok cheers, i think i'll wait and see if they have a new e-isa product or what else is around then. Great forum and some interesting idea's ive already taken on-board!

helptoyou

Hi before you wait until August I would clarify if you have a fixed term ISA or an easy access ISA. Yes if its fixed term charges are likely to apply but less so if its easy access ( I would telephone Nationwide to clarify if you are unsure about any potential charges 08457 30 20 10).

If you wait until August the santander ISA may no longer be available.

Kips247

Its not fixed but thinking that the 3.10% would be better served applying for the whole 12 months rather than moving early and missing out?

Lokolo

Kips247 wrote: »

Its not fixed but thinking that the 3.10% would be better served applying for the whole 12 months rather than moving early and missing out?

Apologies, I misread earlier. There aren't any penalties with the e-ISA as it is instant access as helptoyou says.

But you are getting more interest in the e-ISA than you would in the fixed term ISA, so you should stick with what you have.

helptoyou

Hi I would still telephone the nationwide to check the rate you are receiving if it is 3.1 % and staying that way all well and good however i can only see the information below in relation to the e-isa account.

e-ISA
These rates are applicable to existing accounts opened between 01/07/2011 and 30/04/2012. This account no longer accepts new applications.

e-ISA is an online account which provides unlimited instant access to your savings and a tax free rate of return.

Rates effective from 01/11/2012

Balance

Min Max Free withdrawals per year Notice period/loss of interest for additional withdrawals AER% AER% including bonus Gross p.a.% Net p.a.%
£1+ Unlimited N/A 1.75 n/a 1.75 n/a
This account no longer accepts new applications

Kips247

Yup cheers, im starting to get to the age were my finances are very important to me. In-fact its getting interesting to find out how to use the system rather than just used by it!

typistretired

If your Nationwide isa is paying 3.10% it is the Online ISA Issue 3 which pays 3.10% until 30th September 2013 after that it reverts to 1.00%

See below quote from their website:-

Online ISA Issue 3

These rates are applicable to existing accounts opened between 17/02/2012 and 05/04/2012. This account no longer accepts new applications.

Notes
*
Balances of £1,000+ earn an introductory fixed rate, based on account balance, until 30 September 2013. After this date the rate reverts to 1.00% AER tax-free variable. For any day your balance goes below £1,000 you earn a rate of 0.25% tax-free AER variable.
Rates are fixed. This is a cash ISA.

Kips247

I've logged into my e-isa account and it shows Gross Interest Rate 2.00%

Kips247

ahh found it - quote from article in March 2012 - "Nationwide has extended the bonus on its old 3.1 per cent e-Isa account - one of last year's Isa best buys.
Savers will now see their 1.35 per cent bonus drop away two months later, either at the end of September or October, depending on when they opened the account.
Previously the bonuses were due to expire in July or August leaving savers on a rate of 1.75 per cent - far below the going rate for instant access cash Isas in 2012.
The building society said the two month extension is to give its members breathing space.
Nationwide is writing to all affected customers to notify them of the change and says it will send a reminder nearer the new expiry date as well.
Banks and building societies have come under heavy criticism for teaser rates used to ensnare customers, who are then left floundering when the artificial booster falls away."



Looks like it was a bonus which dropped the in October, Banks are so sneaky! I didn't get the letter ;(