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

gahill29 · 27 November 2013 at 2:52PM

Sign of the times and it is hardly worth worrying about the tax free label. I've built up my ISA pot over a number of years switching/transferring at least 5 times. Been with Natwest since Mar 12, difficult to see where to go next but my Santander current acc pays 3% up to 20K so even after tax looks better ! Might as well put the remainder into riskier equities.

info_maniac · 27 November 2013 at 5:29PM

Have already part-used this years NavWest E-Isa (my partner as well) - Does this mean I have opened or subscribed to a Cash Isa this year and can't open a new Cash Isa and transfer the Natwest Isa to the new one in this tax year?

I believe many other folks will be in the same boat, will be good to know what they intend to do.

gahill29 · 27 November 2013 at 7:40PM

Info_Maniac - This is money ran an article to answer the Q you have posted. It seems you can specifically transfer previous ISA's to a new provider and this is not classed as opening a new one. I am not allowed to post the link as a newbie but the article can be found on google search for "can i open more than one isa in a tax year"

Hope this helps

ultramagnetic_commuter · 27 November 2013 at 11:39PM

Same boat as everyone here. Virgin looks equivalent to what we were getting (it's 1.8% rather than 1.75%). My question is, is there any info on who has cut rates recently? I wouldn't want to switch to Virgin for them to drop their rates in a few months time.

GreenBitterfly · 27 November 2013 at 11:50PM

ultramagnetic_commuter wrote: »

Same boat as everyone here. Virgin looks equivalent to what we were getting (it's 1.8% rather than 1.75%). My question is, is there any info on who has cut rates recently? I wouldn't want to switch to Virgin for them to drop their rates in a few months time.

I think the 1.75% has been that way for a few months, but old Virgin/Northern Rock ISA accounts have had their rates drop, I think mine's dropped twice this year, down to 2.40% from 2.80%, and then again this month from the 2.40% to 2%.

vigman · 28 November 2013 at 5:27PM

Is it possible to time the transfer out (or request a specific day to transfer) from NW so that it is on the last day of the higher rate?

Vigman

dragonfly500 · 2 December 2013 at 11:29PM

New member here, but same deal. Discovered my ISA is halving from 2% interest to a rather pathetic 1% (or 1.15% inc. 0.3% "bonus").

I've been looking at other ISAs to transfer into and come to similar conclusions regarding Royal Mail and Virgin. Does anyone have any thoughts regarding either of these?

Or, as gahill29 mentioned above, is it actually worth worrying about the 'tax free' saving considering the low interest rate anyway? The concern being, I imagine, the promise (threat?) of a more upbeat saving economy in a few years making this a more scary threat for long term savers? But what about for those saving in the short term for, say, a house deposit?

littlemissbossy · 6 December 2013 at 8:23PM

I haven't heard anything, email or post, from Natwest yet!

dave2 · 8 December 2013 at 12:27PM

I'll be getting chopped from 2.25% to 1.5%. What is the best I can switch to - 1.75% with Virgin? Might aswell hang around until/if a decent rate appears, despite my annoyance. Would have been nice to be on a rate actually above inflation for a change.

jonmimir · 11 December 2013 at 11:19AM

It appears Natwest are cutting my current 3.01% rate to a measly 1.5%. Thanks but no thanks, I'll be taking my business elsewhere ... which I'm sure is what they wanted, these changes will save them a fortune.