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 that had accrued over 2.5 months after closing the account and receiving the closing statement.

Latinist

Ayr_Rage said:

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.

Thanks to all for your comments. I think this has nailed it, because it was a fixed one, although I want really bothered about it at the time as I didn't need to draw the interest, but you have all helped me to realise I'll need to check the Ts & Cs for the next one!

eschaton

poseidon1 said:

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 that had accrued over 2.5 months after closing the account and receiving the closing statement.

I also opened one and find it quite annoying. Understandable on a fix where some only apply interest annually but not on instant access. I didn’t check when opening as I just presumed it would be monthly. 

I’ll probably close my own before the year is up and I’d be surprised if they don’t lose a lot of customers due to this. 

Ayr_Rage

eschaton said:

poseidon1 said:

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 that had accrued over 2.5 months after closing the account and receiving the closing statement.

I also opened one and find it quite annoying. Understandable on a fix where some only apply interest annually but not on instant access. I didn’t check when opening as I just presumed it would be monthly. 

I’ll probably close my own before the year is up and I’d be surprised if they don’t lose a lot of customers due to this. 

They'll only lose those that are annoyed with themselves because they didn't check the Ts and Cs!

All anyone has to do is look at the interest box on the likes of moneyfacts to see how and when interest is paid.

NEVER ASSUME ANYTHING. 

eschaton

Ayr_Rage said:

eschaton said:

poseidon1 said:

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 that had accrued over 2.5 months after closing the account and receiving the closing statement.

I also opened one and find it quite annoying. Understandable on a fix where some only apply interest annually but not on instant access. I didn’t check when opening as I just presumed it would be monthly. 

I’ll probably close my own before the year is up and I’d be surprised if they don’t lose a lot of customers due to this. 

They'll only lose those that are annoyed with themselves because they didn't check the Ts and Cs!

All anyone has to do is look at the interest box on the likes of moneyfacts to see how and when interest is paid.

NEVER ASSUME ANYTHING. 

I’m not annoyed with myself. 

clairec666

eschaton said:

poseidon1 said:

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 that had accrued over 2.5 months after closing the account and receiving the closing statement.

I also opened one and find it quite annoying. Understandable on a fix where some only apply interest annually but not on instant access. I didn’t check when opening as I just presumed it would be monthly. 

I’ll probably close my own before the year is up and I’d be surprised if they don’t lose a lot of customers due to this. 

I don't think they'll lose any customers. They're not doing anything wrong or deceptive.

eschaton

clairec666 said:

eschaton said:

poseidon1 said:

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 that had accrued over 2.5 months after closing the account and receiving the closing statement.

I also opened one and find it quite annoying. Understandable on a fix where some only apply interest annually but not on instant access. I didn’t check when opening as I just presumed it would be monthly. 

I’ll probably close my own before the year is up and I’d be surprised if they don’t lose a lot of customers due to this. 

I don't think they'll lose any customers. They're not doing anything wrong or deceptive.

No one said they were. 

This thread suggests that they lost a customer due to when they pay interest so obvious to say you thought wrong. 

QrizB

Ok, how about:

eschaton said:

..  I’d be surprised if they don’t lose a lot of customers due to this. 

I don't think they'll lose very many customers over this. Most people don't pay any attention to when their interest is paid and most leave it in the account until maturity.