Nottingham BS mugging regular saver ISA customers

pochisoldi

I opened a "Nottingham BS Starter ISA Issue 8" last year. This is a regular saver ISA paying 2.25%, which matures on 5th April 2019.

The original promise contained in the original key features document (at https://www.thenottingham.com/~/media/files/savings/factsheets/starter-isa-8.pdf?la=en ) was:
Shortly before your account matures we will write to you with replacement products available. If we do not hear from you, we will
transfer your balance to our variable rate easy access Cash ISA account or the nearest equivalent. You will continue to earn tax-free
interest at the prevailing variable Cash ISA or nearest equivalent rate.

My interpretation of this is "Your money goes into whatever instant access ISA we have at the time"
The only variable rate Cash ISA the Nottingham are advertising is the "Easy Access ISA Issue 4" paying 1% AER

The maturity "pack" I received contained:

• A letter saying that if I do nothing the money will go into a "ISA Min Cash Account".
• A "Branch Savings Products Summary" sheet valid from 15th March 2019, which shows the Easy Access ISA Issue 4, and no other easy access product.
• A key product information sheet for the "Cash ISA Account" paying 0.25%

A phone call to clear up this confusion, tells me that the money goes into the "ISA Mini Cash Account". This product is not listed anywhere on the Nottingham's website. Nor is it listed in their "closed to new customers" interest rate list.


The Nottingham are mugging their customers by having them expect to see their money moved into a current easy access product, but in reality they migrate matured funds into a "hidden" Easy Access ISA product which isn't actually available to new customers paying a quarter of the peanuts their "standard" easy access ISA pays.


On top of this they deliberately confuse customers by providing documentation that refers to three different types of account.


You have been warned.
PochiSoldi

xylophone

On top of this they deliberately confuse customers by providing documentation that refers to three different types of account.

Have you written and complained about the lack of clarity?

veryintrigued

Thanks for the information.

Notts have released their ISA Regular Savers details on the 24th March the past two years. Hence I expect that's when the new follow on ISA appears online. If they have a similar product to the past two years I'll be instructing them to send me a cheque for everything apart from a first month's deposit for a new RS.

skitskut

I was thinking exactly the same. Disappointed they're not moving the maturing funds into the Easy Access ISA as they did the previous year.

Paul_DNAP

Mug them back, the second it is in the instant access account, transfer it somewhere who will give you a decent rate for your money.

pochisoldi

xylophone wrote: »

Have you written and complained about the lack of clarity?

Complaint registered about 30 minutes before I made my original post.

pochisoldi

Paul_DNAP wrote: »

Mug them back, the second it is in the instant access account, transfer it somewhere who will give you a decent rate for your money.

That's the plan, looking like the Cov BS at the moment.

Descrabled

A helpful Nottingham B S lady informed me that next years Starter ISA will have an interest rate of 2%. It will be similar to this year's Starter ISA with the same monthly payments. It will be on sale from 6th April and can only be opened in branch.

jackieblack

pochisoldi wrote: »

The maturity "pack" I received contained:

• A letter saying that if I do nothing the money will go into a "ISA Min Cash Account".

pochisoldi wrote: »

The Nottingham are mugging their customers by having them expect to see their money moved into a current easy access product, but in reality they migrate matured funds into a "hidden" Easy Access ISA product which isn't actually available to new customers paying a quarter of the peanuts their "standard" easy access ISA pays.

Easy answer - don’t ‘do nothing’
:huh:

aj23_2

A lot of accounts mature into 'not for sale' accounts, AKA maturing accounts. Don't see the issue here.