Missed NW loyalty maturity date.

howryoo

refluxer said:

howryoo said:

For those who have, is there any point / benefit in keeping the Fixed Term ISA Maturity account open?

Although they may offer exclusive rates for their 1 - 2 year ISAs, I can't imagine they'll let you transfer back (from say their triple access) into the maturity account to avail of offers?

No, the Fixed Term Maturity ISA is worthless once you've transferred all your funds out. It'll get closed automatically when that happens anyway.

howryoo said:

Also, although the triple access ISA states it's a '12 month fixed term', I assume it's just referring to the rate (1.50%) being fixed for that period before lowering at the end of the term?

The rate for that ISA is variable, so the 1 year term acts as a time-frame for the limited number of withdrawals allowed before the rate drops, plus it reverts to a standard easy access ISA after that time.

Thanks, it's what I thought on both points.

intalex from the other thread has a zero balance in their FT ISA Maturity account?  Serving as a second 'pot', but I wonder when that would become useful? 

intalex

howryoo said:
Having said that, I believe @intalex from the other thread has a zero balance in their FT ISA Maturity account?  Serving as a second 'pot', but I wonder when that would become useful? 

I had considered keeping a pot of £10k to do a full transfer to a Santander 1-year ISA at the time, and earn the £50 voucher, but better rates have emerged since so it's just there as an empty pot...

howryoo

intalex said:

howryoo said:
Having said that, I believe @intalex from the other thread has a zero balance in their FT ISA Maturity account?  Serving as a second 'pot', but I wonder when that would become useful? 

I had considered keeping a pot of £10k to do a full transfer to a Santander 1-year ISA at the time, and earn the £50 voucher, but better rates have emerged since so it's just there as an empty pot...

Ah, I thought it might be something to do with that, considering Santander's requirement to transfer full balance.

But has anyone actually kept a Fixed Term ISA Maturity account open (with or without a balance) and managed to move funds back in?

Is the Santander worth doing for a year with an effective rate of 3.85%?

refluxer

howryoo said:

Ah, I thought it might be something to do with that, considering Santander's requirement to transfer full balance.

But has anyone actually kept a Fixed Term ISA Maturity account open (with or without a balance) and managed to move funds back in?

My experience with 'maturity' ISA accounts is that they're normally intended as a temporary holding account (hence the derisory rate) however Nationwide may do things differently, of course.

I've only ever carried out full transfers from a maturity ISA and on every occasion the ISA was closed once the funds were transferred, so I'm surprised to hear that it's possible to keep this maturity ISA open with zero balance but, thinking about it, this might be due to the fact that it's a flexible ISA, where funds can be withdrawn and replaced in the same tax year without loss of ISA status.

Unless you were wanting a quick and convenient way of transferring the full balance to a Santander fixed rate to qualify for the promotion (as mentioned above), I can't really see any other benefits to hanging on to it once you've moved your funds elsewhere and any funds left in there would be better-off transferred to a higher paying easy access account anyway. (see update in comment below)

howryoo said:

Is the Santander worth doing for a year with an effective rate of 3.85%?

The Santander 1 Year Fix @ 3.35% is decent (especially if you qualify for the voucher), however UBL have set the bar fairly high @ 3.61% so hopefully more should follow. There are a number of normally-competitive banks like OakNorth, Shawbrook and Paragon who've fallen way behind with their fixed rate offerings, so they're long overdue a boost to their ISA rates.

It's worth noting that Santander have one of the highest withdrawal penalties for a 1 year Fixed Rate ISA so I'd avoid if you tend to chop and change to get the best rate (120 days compared with the usual 90 days or even 60 days with Virgin).

refluxer

As an update to my comments above, it does indeed look like there might be a reason for keeping hold of the Nationwide Fixed Term Maturity account if you want to take advantage of their (recently increased but not publicly available) Fixed rate ISAs... 

https://www.nationwide.co.uk/savings/fixed-rate-isa-maturity/

I haven't attempted a transfer yet though as I'm considering my options at the moment

howryoo

@refluxer - I guess you have a point regarding the ISA Maturity account being able to receive funds back in if it's flexible.

From there, you can take advantage of offers such as this.