Problem with NS&I Mini cash ISAS

eugenieooo

We are very dissapointed with our NS&I mini cash ISAS(post office ones)
My husband & I invested £ 12000 during March & April this year 2 separate Financial years.
We have just received our so called six monthly interest ,a payment of £23.98!!!in a reply to our letter They assure us the figure is correct even though they are quoting to us 4.85%- july 5.35% Are any other people having problems with them , I have phoned them 3 times & twice had very bad customer service frankly quite rude

obsessed_saver

Write a complaint letter. They will have to think before they reply. Whereas the people on the phone are probably not in the know.

gt94sss2

I haven't checked the interest you have been paid but it sounds as if you have opened the 'wrong' ISA with National Savings.

If you look at this page you would have been better off opening a Direct ISA rather than a mini Cash ISA

Depending on which financial years your NS&I ISA's cover, you may be able to transfer your ISA to the Direct ISA - but only if you opened it before the 6th April 2006, as according to their T&C:

- You may transfer your NS&I cash mini ISA or NS&I TESSA-only ISA to a Direct ISA but only where the NS&I cash mini ISA or NS&I TESSA-only ISA was opened prior to 6 April 2006. Part transfers are not permitted.

You can always transfer your ISAs to a different provider if you wish - Kent Reliance Building Society has a good reputation for paying decent rates on its ISA accounts.

Regards
Sunil

baldbloke_2

Are you sure that isn't interest up to 5th April 2007 only.

I understood that interest is only added annually at the end of each tax year - my father's ns&i mini cash isa showed no interest for the half-year ended on the statement recently received, only transactions during that period.

To quote from the ns&i site:
All about interest

Interest is calculated on a daily basis on balances of £1 and over, and is credited to your account once a year on 5 April. When you withdraw money, it stops earning interest on the day we issue your payment.


That would seem to explain things.

Jonbvn

According to their T&C's

http://www.nsandi.com/products/isa/tandc.jsp

Interest is only credited annually on 5 April after COB. Therefore, I would guess that you have been credited a small amount of interest up to 5 April 2007. The next interest payment will be on 5 April 2008.

Please read the T&C's people!

debbie42

eugenieooo wrote: »

My husband & I invested £ 12000 during March & April this year 2 separate Financial years.
We have just received our so called six monthly interest ,a payment of £23.98!!! They assure us the figure is correct even though they are quoting to us 4.85%- july 5.35%

Just to clarify: you both deposited 6K in total between March and April, and 6 months later you are getting £23.98 interest on the whole 6K? Is that each or between you? If it's each (being generous) then I work it out as an interest rate of approx. 0.8% p.a. Unless I'm doing something wrong, or making incorrect assumptions, it's stating the obvious to say that isn't a very good rate!

eugenieooo

gt94sss2
thanks a lot I understood a mini cash ISA was easier to access when needed
that was why we chose it

eugenieooo

debbie 42

It was £ 6000 deposited in March2007 (£ 3000 each )& £6000 deposited in April 2007 ( £ 3000 each) Thanks a lot for reply

zzzLazyDaisy

It sounds like the interest that you have received is for the 2006 Isa, which will only be a couple of weeks or so. Both the 2006 and 2007 ISAs will receive a full year's interest in April 2008. However, as other's have said, it sounds like you may have inadvertently stashed your cash in the lower interest ISA. It is very easy to switch to a better ISA, many do take transfers in, but whatever you do, DON'T withdraw the cash, you won't be able to reinvest it for those years. Instead, you need to get an transfer form from the new provider.

Jonbvn

I think you can transfer it to the much better interest rate Direct ISA at NSandI.

eugenieooo

baldbloke
excuse bad computer work by myself New today to this great site
On statement it says period covered 7March --- 5 October so assumed it was a 6 monthly interest It said see enclosure but there wasnt one
thanks for kind advice