NS &I ISA rate?

nilrem_2

Well I am confused TBH, I thought that the interest rate on the NS&I Direct ISA was 5.80% in fact this morning I have just invested this years £3600 in to my ISA account with them, now I notice on the NS&I site that the rate is listed at 5.55% ? I have checked on this is money website and they still list the NS&I rate as 5.80%.

Can someone confirm what the actual rate is please?

Had I known it was 5.55% I may well have invested elsewhere TBH.

Biggles

Bad luck, Nilrem, but best to check at the source first. Some of these comparison sites (this one excepted, I'm sure!) do tend to get out of date.

HonestWhitey

The current interest rate is 5.55% and is guaranteed to stay 0.3% above the BoE base rate. http://www.nsandi.com/products/disa/rates.jsp

I think the rate dropped because the guaranteed rate dropped from 0.55% above the base rate yesterday.

mac12

nilrem. I was just about to do the same. I was ready to top off my NS&I ISA when I noticed the rate dropped from 5.80% to 5.55% even though Compare Money Market listed them as 5.80%.

I know on new ISA's you can cancel within "cooling period" and save the ISA allowance somewhere else but not sure for existing ISAs.

nilrem_2

Thanks for the replies, It's my fault for not checking first, I just assumed it was still 5.80%, still I shan't lose too much sleep, after all on £3600 it only means a difference of about £8.20 per year in interest, and it's less hassle than changing providers.

bristolleedsfan

nilrem wrote: »

Thanks for the replies, It's my fault for not checking first, I just assumed it was still 5.80%, still I shan't lose too much sleep, after all on £3600 it only means a difference of about £8.20 per year in interest, and it's less hassle than changing providers.

On 3600 is actually a difference of 25.20 a year based on 6.25% rates elsewhere that are available both as fixed and variable rate options.

There have been numerous posts in ISA sub forum for a few weeks mentioning the NS&I rate drop from 6th April 2008.

Common belief is that NS&I ISA rate will promptly mirror any future Base Rate falls.

http://www.moneyfacts.co.uk/savings/bestbuys/default.aspx

If u transfer out to Abbey,Nationwide or Halifax u wont lose any interest at all while transfer cheque is in transit and being banked.