Can someone do calculations for me please?

archieboy

I applied to open a Nationwide Bond fixed rate cash ISA at 5.85% in April and my existing previous years ISA's were to be transferred from A&L. I received word from A&L that my ISA had been transferred to Nationwide on the 22nd May. Since then I've been chasing up Nationwide as I had heard nothing from them. A staff member in my local N/wide branch finally made some calls for me last week and today I have received a letter from their head office thanking me for transferring my ISA and saying they now just needed me to fill in the enclosed application form and my ISA would be opened and backdated to the date the funds were received from A&L. They have obviously lost my original application form which was filled in at my local branch but I'm wondering if I can benefit from this. The rate I was originally to get from N/wide was 5.85% but would I benefit if I now applied for their new ISA at 6.15%? I'm guessing that this wouldn't be backdated to the 22nd May as this new rate only came into effect on the 6th July. So my question is do I stick with the old rate of 5.85% and have it backdated to the 22nd May or now take the new rate of 6.15% and lose approx. 6 weeks interest. I just can't work out what is best. Thanks for any help.

RayWolfe

Surely you will get the old rate until the date it was increased and the new rate from that date?

archieboy

I don't think so. As far as I understand they are separate ISA accounts. The 5.85% one I originally applied for was a fixed rate account so I don't think it would be increased.

david78

There's 46 weeks of the year left counting the 6 gone.

In this period.

(a) if you take the 5.85% bond you will earn £58.50 for each £1000 saved
(b) if you take the 6.15% bond you will earn £54.40 for each £1000 saved

Of course you can carry on earning 6.15% on the bond if you take option (b). If you take option (a) it depends on what new ISA you can find.

archieboy

Thanks for your help David.

Rich1976

You will only get the 5.85% on the transferred money as this was the advertised rate at the time you applied for the ISA. Even though Nationwide may have received the transferred money when the rate had increased, you won't get this.
They seem to be having loads of problems at the minute and I know several people who have had application forms lost due to Nationwide's inefficiency