Nationwide ISAs

amibovvered

I opened a Nationwide regular saver ISA in April and have so far paid in £1750. This ISA doesn't accept transfers.

I noticed over the weekend that there is a Flexclusive ISA paying 1.75% which will accept transfers. However you have to open it with at least £1.

I messaged them to ask if the transfer in of another ISA could be in lieu of a £1 payment since I'd already started paying into the regular saver ISA.

Got their reply this morning : Thank you for your message.
If you have not fully subscribed your annual allowance then you can open a further ISA with a £1.00 or the rest of your annual subscription.


Surely that isn't correct?

evenasus

I believe that Nationwide are one of a very few who will allow subscriptions to two ISAs in the same year.

badger09

evanasus is correct - Nationwide is one of the few cash ISA providers which allows you to subscribe (pay new money into) more than one of their products at a time.

So, if you want, you can pay in £1. You could then pay £14999 into the regular saver ISA (subject to T&Cs re max monthly amount, and after the new rules are introduced in July)

However, as a general rule , ISAs which allow transfers in do not require an opening deposit of £1. Providers just don't seem to have been able to work out a suitable form of words to explain this though

le_loup

Whist what you have been told is correct, I don't think you are. The 1.75% Flexclusive ISA does not accept transfers in.

amibovvered

Thanks all. I always thought it was a legal requirement, only being able to have one ISA, rather than up to an individual institution, so that is very useful to know.

Le Loup, that is very odd. I've just looked again at the T&C for the Flexclusive ISA and you are quite right, it will not accept transfers in. However, I could have sworn when I looked over the weekend that it would, and the response from Nationwide didn't refer to it.

All previous ISAs are consolidated with the Halifax at the moment, my 2 year fix of 3% has just ended and the rate is currently 0.5% so I need to move it somewhere. Halifax themselves have a 1.3% ISA I could shift it to, but was hoping to better that.

Thanks again guys :beer:

badger09

Just a thought

You do realise that cash ISA rates are dire at the moment?

Have you considered the plethora of current accounts paying high interest? TSB, Nationwide, Lloyds Club, Santander, Bos etc etc

amibovvered

The Regular Saver ISA is 2.59% which isn't too bad, and current accounts wouldn't solve the problem of where to shift my old ISA. I opened the Flexdirect account last year for the high interest rate so that's now down to 1%. I don't think I can open another current account as I don't have an income - I tried to open a First Direct account a few months ago and was rejected. Wasn't given a reason but I suspect it was because my household income is zero. Thanks anyway.

Archi_Bald

If you get interest from savings, your household income isn't zero.

You don't need to be in employment to get accepted for a current account.

jimjames

amibovvered wrote: »

The Regular Saver ISA is 2.59% which isn't too bad.

It might not be too bad but a current account will double that rate. If you have no income then you won't pay tax on it either which makes an ISA even more pointless. On a MSE site getting the best rate is always worthwhile.

amibovvered

I didn't actually put any more money into ISAs in 2012/13 or 2013/14 precisely because I'm not currently a tax payer.

However, in just over 3 years I'll be getting an occupational pension so will be a tax payer again, so surely it would be short-sighted to put nearly £64,000 worth of ISA money into current accounts?

I never thought of putting interest from savings down as income, I have a number of different savings accounts, would I have to provide evidence of all the income when applying for a current account? Even so, it would only be about £3-4000, would that be enough to open an account? As I said I've already been turned down by First Direct and also a cashback credit card I applied for so I don't want to risk more rejection as that would affect my credit rating wouldn't it?

Herbalus

amibovvered wrote: »

I didn't actually put any more money into ISAs in 2012/13 or 2013/14 precisely because I'm not currently a tax payer.

However, in just over 3 years I'll be getting an occupational pension so will be a tax payer again, so surely it would be short-sighted to put nearly £64,000 worth of ISA money into current accounts?

Yes it probably would. You could, however, move at least £15,000 out of the ISA and then put it all back in again when you start paying tax, assuming that your ISA rate is higher at this point than your post-tax savings rate. This is unlikely because TSB at 5% is still 4% after 20% tax and I don't think ISAs will be beating that in just a years time.

amibovvered wrote: »

I never thought of putting interest from savings down as income, I have a number of different savings accounts, would I have to provide evidence of all the income when applying for a current account? Even so, it would only be about £3-4000, would that be enough to open an account? As I said I've already been turned down by First Direct and also a cashback credit card I applied for so I don't want to risk more rejection as that would affect my credit rating wouldn't it?

First Direct definitely wouldn't approve you if you told them you had no income. Some accounts have the option for "savings" when they ask you what you'll do with the account. And yes, if you put down your income, which is what your savings income is, then you're more likely to be accepted.

P.S. Your credit rating is there to be used - there is no point having a good credit rating if you're not applying for products i.e. if you don't actually need the credit (no mortgages to apply for, no need for home loans), then it really shouldn't matter what state your credit file is in. My personal take on this, therefore, is to apply for the products you want. Those who might want a mortgage in a few years might have to be a bit more careful with their applications!