Nationwide 2.5% Regular Saver ISA

badger09

eg TSB and Nationwide FlexDirect 5%, Club Lloyds 4% etc etc

YorkshireBoy

hgt wrote: »

I really don't get the point of holding fire until March to max out this account - am I missing something?

Surely you'll just get the 2.5% for one month at most, before the Nationwide reg saver comes to the end of it's term and converts to a bog standard ISA paying peanuts?

The poster is saving the cash in 4% and 5% paying current accounts first (as they have already mentioned) which, for a basic rate tax payer, results in a net 3.2% and 4% respectively...both of which are obviously better than 2.5%.


They'll make their 'use it or lose it' decision next March, just before the end of the current tax year

KTF

hgt wrote: »

I really don't get the point of holding fire until March to max out this account - am I missing something?

Surely you'll just get the 2.5% for one month at most, before the Nationwide reg saver comes to the end of it's term and converts to a bog standard ISA paying peanuts?

I can get more interest on my ISA money by putting it in the various current accounts - 2x TSB, 1x Lloyds, 1x Lloyds & FD Regular Saver, etc.- than I can in an ISA at the moment.

If I then want to use my ISA allowance at the end of the tax year, I can transfer it all into the Nationwide one in one 15k go if needed.

colsten

KTF wrote: »

If I then want to use my ISA allowance at the end of the tax year, I can transfer it all into the Nationwide one in one 15k go if needed.

...and then, hopefully, immediately transfer it to a better paying ISA after the ISA has morphed into an ISA Saver (currently paying 1.5%). Or may be pay it into a better cash, or into an investment ISA in the first place.

KTF

Yes, those are the options available but at the moment I am making best use of my 'ISA' allowance by not putting it in an ISA

dggar

KTF wrote: »

Yes, those are the options available but at the moment I am making best use of my 'ISA' allowance by not putting it in an ISA

I thought you could only put a max of £1250 per month.
Are you saying you will bang in £15K in March

KTF

dggar wrote: »

Are you saying you will bang in £15K in March

Yes.

"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."

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

hgt

Sorry guys - I didn't make myself clear.... you're preaching to the converted here.... I fully understand the advantages of saving in current accounts then shoving the full £15k into an ISA right at the end of the tax year in order to not loose the ISA wrapper for the year.

The point I was making... I don't get why you would do this with the Nationwide Reg saver ISA.... what's the point? Surely may as well save in current accounts until March 2015 or so, then shove the money in whatever ISA is paying the best at that time.

YorkshireBoy

hgt wrote: »

The point I was making... I don't get why you would do this with the Nationwide Reg saver ISA.... what's the point? Surely may as well save in current accounts until March 2015 or so, then shove the money in whatever ISA is paying the best at that time.

KTF, like me, probably opened the Reg Saver ISA with £1 at launch...so without transferring it elsewhere it's realistically the only ISA they can pay into next March.


Plus it's probably going to still be the best paying 'clean' ISA come next March (in my opinion).

hgt

Ah OK, that makes sense. Sorry for the confusion - I have 6 current accounts myself so I know the advantages :-)