Nationwide 2.5% Regular Saver ISA

Archi_Bald

Sounds a very sound plan to me

le_loup

KTF wrote: »

So you could open one on Sunday and feed it £1 a month whilst the cash swirls around the high interest current accounts, regular savers, etc then throw it all in the ISA in March so you dont lose your allowance?

But you could put it in to any ISA account next March! What rate will this ISA be paying from April onwards? It won't be 2.5%. So Why would you want to open this account now and pfaff around with monthly payments of £?

KTF

That is a good point. As its only going into an ISA to soak up the allowance, any ISA could do.

But then as a £1 a month backup in case rates hit the floor...

innovate

le_loup wrote: »

But you could put it in to any ISA account next March! What rate will this ISA be paying from April onwards? It won't be 2.5%. So Why would you want to open this account now and pfaff around with monthly payments of £?

I think KTF is talking about next March, so you might be in violent agreement with him/her. The only reason for the suggestion to put £1 in until next March is to keep the account open and ready for a deposit of £14,988 then. From the Nationwide press release it looks that this is possible and this ISA could be a great choice for the cash ISA savers.

KTF

Him ;-)

My idea was as innovate suggests.

mike_wall15

Nath4n wrote: »

According to the article you'd get £211 over the course of the year by saving £1250 each month, vs £225 by putting a straight £15k into a 1.5% ISA.

My personal plan is to drip feed this from my Santander 123 (which essentially pays 2.4% after tax) and to hopefully keep the Santander 123 topped up along the way. This will ensure roughly 2.4-2.5% on my money across the entire year and then ideally find a nice new home for the full £15k NISA this time next year.

Close, but not quite £225 as you cannot put a full £15k into an ISA right now. You can only put in the £5,xxx allowance now, and then the remaining £9,xxx on 1st July.


Mike

le_loup

Further investigation shows that this is not a regular monthly saver at all!


No fixed amount each month (up to £1,250)
No deposit required each month
Withdrawal on demand
Rate reduces after one year


Sounds like an instant access ISA at 2.5% with a monthly maximum limit. Great!

noelphobic

KTF wrote: »

An interesting part from their press release:

Source: http://www.nationwide.co.uk/about/media-centre-and-specialist-areas/media-centre/press-releases/archive/2014/4/02-april-new-regular-saver-isa

So you could open one on Sunday and feed it £1 a month whilst the cash swirls around the high interest current accounts, regular savers, etc then throw it all in the ISA in March so you dont lose your allowance?

Don't know if I'm missing something here but wouldn't you only be able to put £1250 in in March, if that is the maximum deposit per month? Or are you allowed to carry over unused allowances from previous months?

Just read it properly and realise I was missing something!

From 1 March 2015, the maximum monthly deposit limit will be removed, allowing customers who have not fully utilised their full annual ISA allowance to top-up to the maximum of £15,000. Regular Saver ISA has a fixed term until 31 March 2015, after which the money will be transferred into the Society’s Instant ISA Saver.

KTF

Product now live: http://www.nationwide.co.uk/products/savings/regular-saver-isa/features-and-benefits

david78

Given this isn't really a monthly saver, and the fact that I can open/subscribe to two cash ISA accounts with Nationwide, can I do the following if I have the money to invest today:


(a) Open this Regular saver and pay £1250 today, and
(b) Open a Flexclusive ISA (1.75%) and pay £4,690 today


Then on 1st July:


(c) Pay £1250 to the regular saver ISA, and
(d) Pay £310 to the Flexclusive ISA


This assumes I can miss payments. The only payments I would make to the Regular saver are (a) and (c). Can someone check my maths too.


(I only want to save £7500 as cash this year as I am also paying £625 per month to a S&S ISA starting tomorrow).