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

clairec666

eschaton said:

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. 

I'll re-phrase it then - I don't think they'll lose many customers.

It might not be obvious to everyone, but yearly interest appears to be the more common option. If anyone wants monthly interest, if they need the income, or for whatever reason, it's fairly straightforward to search for monthly interest options on moneyfactscompare. If it's an easy access ISA, there's nothing stopping you withdrawing the interest each month, and if it's flexible, even better. If it's fixed rate, then withdrawals won't be possible, but most of the monthly interest 1 year fixes say "interest can be paid away or compounded".

Might seem a tad complicated for anyone who's new to this, but there are options out there if you know what to search for.

eschaton

QrizB said:

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.

There isn’t a maturity date. 

t0rt0ise

https://forums.moneysavingexpert.com/discussion/comment/81855527#Comment_81855527

The OP's account was a fixed rate account so would have had a maturity date and that's what the thread is about. If your situation is different then just withdraw the interest when you want it. I don't see a problem really.

eschaton

https://forums.moneysavingexpert.com/discussion/comment/81857753#Comment_81857753

You can’t withdraw what isn’t available to withdraw.

lr1277

I don't know if this is possible but might be worth you investigating.

Skipton BS on some of their fixed rate products do pay interest monthly. That is both for ISA and non-ISA savings accounts. I just checked the 18 month fixed rate ISA and it does pay interest monthly. They will either pay the interest into the savings account or they will pay it away to an account at a different bank/building society. Your annual rate of interest will be lower if the interest is paid away as there isn't the benefit of compounding.

Skipton may not offer the best rates but they seem to do what you want.

However I don't know if you will be able to transfer your Nationwide fixed rate ISA to Skipton.

Hope that helps.

Malchester

https://forums.moneysavingexpert.com/discussion/comment/81858686#Comment_81858686

Yes quite a few banks / building societies pay interest monthly if you wish, and most will pay the interest out or leave it in the account (for fixed terms or easy access). I think most app only accounts only allow interest to be compounded but, if it's easy access you can withdraw as required.

wmb194

https://forums.moneysavingexpert.com/discussion/comment/81859514#Comment_81859514

I haven't tried many app only banks offering fixed rate bonds but Atom is app only and allows monthly interest paid away on it fixed rate bonds. Unusually, it also allows you to set the interest payment date.

For the longest time Nationwide had monthly interest paid away options for almost all its accounts but a few years ago it gave up on them completely.

VXman

https://forums.moneysavingexpert.com/discussion/comment/81851750#Comment_81851750

I have found most ISA 's pay interest at the end of a year. (maybe because I tend to go for fixes). I did have to make a choice with my Shawbrook one between monthly and annually. I went for annual as I like to just forget about my ISA until the following year.

My choice of ISA is based on the best interest rate. I guess if you need to use the interest then you need to find a monthly paying one.

I doubt Nationwide will lose customers - annual interest is quite normal.