Nationwide won't allow interest to be paid out of my ISA

Latinist

The last time I opened a cash ISA with the Nationwide it wasn't possible to have the monthly interest paid out into my FlexAccount. That was OK then but soon I'll want the income from ISA interest. Why don't Nationwide allow interest to be paid out, even when the interest is paid monthly? I asked in branch and the advisor didn't know why either. Have I / we misunderstood something about the product or is it just NW using the funds elsewhere?!

Ayr_Rage

It is likely you have misunderstood the product.

I presume it is a fixed term product where interest is credited monthly but only paid out at maturity or possibly once a year for a product that last several years.

The funds remain yours but you can only access them as per the Ts and Cs of the product.

eskbanker

Latinist said:

Why don't Nationwide allow interest to be paid out, even when the interest is paid monthly?

It's entirely up to institutions to decide what to offer with their products - some will require interest to be paid out externally, some will offer it as an option, others will mandate that it stays within the account.

What's the product?

poseidon1

Agree one has to examine T & C's in fine detail.

I recently shut a Tesco bank instant access account originally paying 4.2% ( including a fixed bonus), precisely because they do not credit interest to the account monthly and there is no visibility of the interest accrued until the end of the 1 year bonus period.

I only discovered the interest accrued over 2.5 months after closing the account and receiving the closing statement.