MSE News: Got a NatWest or RBS cash Isa? Check your rate isn't being cut

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"Three million NatWest and RBS Isa account holders will have their rates cut or boosted on 31 January 2014..."
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Got a NatWest or RBS cash Isa? Check your rate isn't being cut

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Got a NatWest or RBS cash Isa? Check your rate isn't being cut

Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
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Thanks for the heads up - time to move methinks, but I'll wait for the letter.
1. 3% mortgage interest saving in an offset account.
2. commercial property or other fund within a S&S ISA paying 5% and up tax free.
3. various home upgrades that could save utility bill costs.
4. 9% or so tax free in a VCT
5. 20%+ P2P lending in Euros, taxable. Tax return required if this is used.
All carry various levels and types of investment risk. Only the ISA and mortgage have strong protection against capital loss from the FSCS.
Just condensed all my cash ISA accounts by transfers in to the RBS e-ISA, getting the 2.25% rate by having just over £30k in there.
Seriously thinking now about taking a 5 year fix at 3% (with Virgin for instance). There are one or two banks/building societies that offer transfer in and allow early closure for loss of 120 days' interest. In the event of savings rates soaring above 3% during next 5 years the penalty for transfer out doesn't seem to bad to me.
Say I was in a cash ISA at 3% for three years, then transferred out with the loss of 120 days' interest, this would still be significantly better than taking 3 years at 1.75% with no penalty. My very rough calculations suggest a break-even point at about 1 year.
Thats 30k of my money off natwest's books. Probably move to a shares isa. 2.25% to 1.5% is an enormous reduction
Yup. Almost exact same boat with me too. Was nice having an ISA that had decent enough rates, gave monthly interest, and accepted transfers. Ahh, the joys of a race to the bottom thanks to cheap government money.
Thanks for the warning!
Vigman
A change in the rate of return should not necessarily lead to a change in your appetite for risk. 2.25% has been looking too high for at least six months.
Warmest regards
FA