Punjab National Bank Cash ISA Rate Reduction

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
9 replies 2.3K views
SavingSteveSavingSteve Forumite
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edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
Just got a letter through informing of a rate reduction:

Variable rate, down to 1.05% (from 1.45%) from 10th Aug.

Fixed Rates (current rate, then rate effective 10th June, then rate effective 15th June):
1 yr : 1.75% -> 1.3% -> 1.1%
2 yrs : 1.9% -> 1.5% -> 1.2%
3 yrs : 2.3% -> 1.65% -> 1.4%
4 yrs : 2.35% -> 1.7% -> 1.5%
5 yrs : 2.5% -> 2.1% -> 1.7%

Replies

  • veryintriguedveryintrigued Forumite
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    Thanks for the heads-up SS.
  • I have had the letter too. Silly me - I thought fixed rate meant fixed rate!!
  • Archi_BaldArchi_Bald Forumite
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    Holliberry wrote: »
    I have had the letter too. Silly me - I thought fixed rate meant fixed rate!!

    The new fixed rates only apply to new customers and renewals. If you have an existing account, you will get the fixed rate until maturity of your account.
  • Thank you Archi Bald - that is very reassuring!
  • dave_dphdave_dph Forumite
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    Think I'll transfer a small amount to Nationwide's Flexclusive at 1.3%, but I guess that rate will also reduce. At least by only transferring a small amount I'll continue to benefit from 1.45% until August, and if Nationwide haven't reduced the rate I can transfer most of the balance across.

    It's all becoming ridiculous!
  • greenglidegreenglide Forumite
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    It's all becoming ridiculous!
    You are currently getting 0.95% above base rate.

    You would be happier having base rate at 5% (with its associated inflation) and getting 5.95% ?
  • dave_dphdave_dph Forumite
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    Just received a further rate reduction letter; from 20th September the variable rate will drop from 1.05% to 0.5%.

    Guess I'll be transferring the remaining balance to Nationwide.
  • MARTYM8`MARTYM8` Forumite
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    dave_dph wrote: »
    Just received a further rate reduction letter; from 20th September the variable rate will drop from 1.05% to 0.5%.

    Guess I'll be transferring the remaining balance to Nationwide.

    Not quite as big a drop as by Danske bank.

    At present savers in their instant access ISA with investments of £30,000 to £45,000 get 1.6%. From mid September this best buy will drop to 0.1% unless you save over £45,000 where you will get 1%.
  • SavingSteveSavingSteve Forumite
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    First time this has happened when I've transferred an ISA, so thought I would flag this. By default when Punjab National Bank transfer your ISA elsewhere they will not close the account at the same time. Therefore as Interest is only paid annually the transfer will not include any unpaid interest.

    As your account will be left open they will either i) pay you interest annually (into the Punjab ISA if that is what you requested when you set the account up) OR ii) you can seperately write to them to close the account, and they will then calculate the interest, and send instructions as to how you want the interest paid (I presume this does not include transferring the interest to your new provider).

    If you REALLY want the interest to hit your new ISA then you can wait for the annual interest to hit Punjab, then resubmit an ISA transfer form.

    As I said, I don't think most other providers do this. I wonder how many people would just forget about the account and never claim the interest?
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