Nationwide 18 month Member Exclusive ISA maturing?

roked

refluxer said:

howryoo said:

Does the current Member Excl. FRISA just gets renamed to the Maturity ISA Account and assigned a different rate, but retains its account details?  So if I decided to apply with an external provider, I could use my existing details?

My 18 month Nationwide FRISA hasn't matured yet, but I'm fairly sure that is normally what happens when a fixed rate ISA converts automatically into a 'maturity' ISA - ie. new name and new rate but the same account details.

I would imagine it's like that for exactly the reason you mention - that a transfer request could be part-way through, in which case a sudden change of account details would cause issues.

Yes that is correct, it is simply renamed and the new 'tiered' rates applied. This way you still have the full account history, including the interest applied at the end of the term. 

roked

refluxer said:

Silverbird65 said:

Can I just verify sorry just got alot to end up tied in a 1.5 triple. I must be reading it wrong. I can xfer out? Why don't they just say that. By the way you were spot on the details have come up to xfer into triple access on accts. Thanks again for your patience.

You can transfer out of any Cash ISA, as far as I know. If it's a fixed rate ISA then there will be a penalty to pay and if it's an easy/limited access Cash ISA, then a transfer would normally be penalty-free. As always though, you must read the T&Cs to be sure.

You're right in that the T&Cs specific to that account don't mention anything about transferring out but no. 47 in their general Cash ISA T&Cs states " You can generally transfer money you hold with us in a cash ISA to another ISA manager or transfer money held in an ISA with another ISA manager to a cash ISA you hold with us. Your ability to withdraw money or pay money into an ISA will, however, be subject to the specific ISA product terms and conditions."

I had a quick scan through and, despite them referring to it as a '1 Year Triple Access ISA', I couldn't find any mention of transfer penalties so I would infer by that that there are none. Despite it having '1 Year' in the account name, it's presumably not the same as (for example) a '1 Year Fixed Rate @ X%' Cash ISA, where there would be a transfer penalty.  

That is just my take on it though - for official confirmation and for peace of mind I would phone Nationwide, especially if there are large sums involved.

The 1 year part is simply for the rate purpose, at the end of the year, it will revert to a standard isa rate of something much lower. The only penalty of this account is that after 3 withdrawals, the rate will drop to 0.25% for the remainder of the 1 year. Transfer out counts as one of the three, however since you are closing the account with the transfer anyway, you do not care about this...

isasmurf

Regarding the concerns about ISA transfers out. From HMRC ISA managers guidance https://www.gov.uk/guidance/transfer-an-isa-if-youre-an-isa-manager

Investors have the right to transfer their ISAs whenever they want and this right must be included in the manager’s ISA terms and conditions.

Silverbird65

Have just spoken to Nationwide. You are right you can xfer out. Not to clear in the T&C of the triple ISA  it should be clearer I think. I will put in there get bit better interest rate get 10000 into Santander for 3% and e gift. Then sit and wait to see what happens in the meanwhile. Thanks 👍

refluxer

roked said:

The 1 year part is simply for the rate purpose, at the end of the year, it will revert to a standard isa rate of something much lower. .

Yes - it reverts to an instant access account at the end of the 1 year term (most likely at a lower rate), but note that the rate during the term is actually variable so could change at any time. The '1 year' time period is therefore stated simply to provide a time frame for the number of withdrawals you can make before the rate drops and not the length of time the rate will hold

savit4l8er

Quite liking the Virgin and Santander offerings just now, still have a couple of weeks until maturity to make a decision. 

Silverbird65

I am staying away from Virgin my husband has had bad experience. Customer service non existent. Your call though. I've just opened Santander with 10000 from othe ISA. 

refluxer

savit4l8er said:

Quite liking the Virgin and Santander offerings just now, still have a couple of weeks until maturity to make a decision. 

With the expected rate rise announcement coming tomorrow, that could actually be good timing. With the recent 1 year fixed rate Cash ISA rate increases, there are a fair few providers who normally feature in the top tables who've been left behind (banks like OakNorth, Paragon, Shawbrook etc) and they'll need to beat these latest 3%+ rates if they want to remain competitive. 

SonOfPearl

I have received a letter from Nationwide today regarding my maturity options. I decided to renew for 1 year, and was pleased to see that when I did this online the rate was 3.25% (despite the paperwork in the letter stating the rate was 2.75%). The rate must have just been increased. 

Silverbird65

Well done I missed out there serves me right