Nationwide not setting up ISA's correctly when rolled over online - No Monthly Interest Paid !!

DiddymanUK

Hi,

I have had a number of cash ISAs with Nationwide which I have rolled over with them for a number of years and have always opted for "Yearly" interest to be credited at the end of the annual term as opposed to "Monthly" interest (at a slightly lower rate) credited to my currently account monthly.

For 2024 as the cash ISAs came up for maturity I have been opting for "Monthly" interest to be credited to my currently account.

During the 1st half of this year there were 5 ISAs that matured and when I rolled them over I provided the instructions online and opted for "Monthly" interest and specified the current account where the interest had to be paid to.

I noticed that on 2 of these ISA accounts I was receiving the monthly interest as expected, but on 3 of them no interest was paid at all. This was not a setup delay as one of them was reinvested in April 2024, and I received no interest in April, May or June 2024.

After delving in to my online account I can see that on the 3 I am not receiving interest on, the reference number provided by Nationwide contains an "M" to denote monthly interest and the interest rate is the correct rate for "Monthly" interest, but it states on the account interest as "Yearly". Where on the other 2 accounts that are setup correctly it states interest as "Monthly".

So today I went to my local Nationwide branch and explained the problem.

When they checked on their system they said I was incorrect as at their end it showed it was setup as "Monthly". I countered this by showing them that at my end it was showing as "Yearly" and provided them with a print of the screen from my online account. In addition it showed ZERO payments of interest from these accounts.

Nationwide then called their "Savings Account Team", I could not hear what was fully said but, in reality I was advised it was just another branch they were calling. 

There agreed that something had go wrong at their end when setting up these accounts, but could not rectify it there and then and said they would have to order me a "Tax Consolidation Certificate", which will take about 10 days, for each of the accounts that was setup incorrectly, then I would have to take that in once received and they should be able to rectify it.

To me this sound like a fob off and delay tactics, as I have received no interest on these 3 accounts and looking online none of these 3 account shows any interest being paid either (On the ISA's setup correctly it show each monthly interest amount paid out and the account it was paid to). So I expect the "Tax Consolidation Certificate" to show nothing.

Out of the 5 ISA they setup 3 (60%!!) of them wrong...how many other customers out there have this same issue. So far the interest I am missing is excess of £350.

Has anyone else experienced this?
Could I get a little compensation from Nationwide for the time and hassle it is causing?

Cheers
Mark
[Not a Very Happy Nationwide Customer]

bryanb

You should be compensated for your losses. Maybe a goodwill gesture as well if you push. My advice would be a written complaint.

eskbanker

DiddymanUK said:

There agreed that something had go wrong at their end when setting up these accounts, but could not rectify it there and then and said they would have to order me a "Tax Consolidation Certificate", which will take about 10 days, for each of the accounts that was setup incorrectly, then I would have to take that in once received and they should be able to rectify it.

To me this sound like a fob off and delay tactics, as I have received no interest on these 3 accounts and looking online none of these 3 account shows any interest being paid either (On the ISA's setup correctly it show each monthly interest amount paid out and the account it was paid to). So I expect the "Tax Consolidation Certificate" to show nothing.

I'd expect a "Tax Consolidation Certificate" (whatever that is) to show nothing too, since there's no tax associated with ISAs!

I'm sure it'll all be sorted out at some point but it does sound like an unnecessarily bureaucratic approach, so chances are that they'll offer some sort of modest goodwill gesture in response to a well-crafted and focused complaint once resolved....

masonic

Hmm, it's not very consolidated if you get one for each account, and tax certificates are only normally issued for taxable accounts. Sounds to me like mumbo jumbo used to conceal cluelessness. If they meant "consolidated tax certificate", then that a thing, but it applies to taxable investment accounts, not cash ISAs.