Nationwide fixed ISA Missleading

moneysaver

Hi,
I have just been to the Nationwide to open up their fixed rete ISA 6.15% putting in this years allowance & also transferring a large sum from my Brittannia ISA. On the transfer amount I have been told they cannot guarantee the 6.15% as the transfer may take upto 6 weeks and at this time the 6.15% may not be available so I will get whatever is available at this time. It does not state this anywhere on the website that this is the case on transfers, so this means if I transfer I will have to take a risk as to what the rate will be at the time they get my funds. Not very fair in my opinion.

Moneysaver

YorkshireBoy

moneysaver wrote: »

On the transfer amount I have been told they cannot guarantee the 6.15% as the transfer may take upto 6 weeks and at this time the 6.15% may not be available so I will get whatever is available at this time. It does not state this anywhere on the website that this is the case on transfers, so this means if I transfer I will have to take a risk as to what the rate will be at the time they get my funds. Not very fair in my opinion.

http://www.nationwide.co.uk/pdf/savings/P5905_ISAs.pdf (top right of page 4...and it's 30 days, not 6 weeks)

Liz_the_Whizz

I noticed that Halifax have the same caveat on their website re: their Fixed Rate ISA, so I suspect every bank and Building society will be as commitment phobic.

ISA transfers really are a pain.

moneysaver

I have just read it on the leaflet, It is a get out clause for them then. So If you transfer you may not get the advertised rate.

Moneysaver

HonestWhitey

moneysaver wrote: »

Hi,
It does not state this anywhere on the website that this is the case on transfers, so this means if I transfer I will have to take a risk as to what the rate will be at the time they get my funds. Not very fair in my opinion.

If Nationwide change the rate, they the waive the notice period and you have 60 days to transfer your funds to another ISA. See Item 26 in the T&C's in Yorkshireboys link.

You

I have been trying to find out if a similar thing happens with the Northern Rock Fixed Rate Access ISA (6%). I called them up and was told that you will get the rate advertised on the day you apply not the rate when the transfer takes place! Unfortunately it's not mentioned anywhere in writing, so seems to be a case of trust. This seems the best bet at the moment, as rates are likely to have gone down by the time the isa gets transferred.

forevergrey

moneysaver wrote: »

Hi,
I have just been to the Nationwide to open up their fixed rete ISA 6.15% putting in this years allowance & also transferring a large sum from my Brittannia ISA. On the transfer amount I have been told they cannot guarantee the 6.15%
Moneysaver

It seems that the branches are not singing from the same hymn sheet. I hope that what they told me is correct!

http://forums.moneysavingexpert.com/showthread.html?t=401374&page=38

Milarky

forevergrey. You can post the link to the specific reply too, if you wish

http://forums.moneysavingexpert.com/showpost.html?p=9986043&postcount=755

(Just right click and 'copy link' on the #number)

bristolleedsfan

6.15% Fixed Rates have actually been in force since 4th July 2007 so their isnt any recent experience of what happens if Nationwide change the rate before transfer funds are received. ( I know what the terms and conditions say.;) )

Nationwide would have to factor in whatever delay their is in them contacting the old provider IMO.

Of course if rates were going up people would say that they should get the rate thats in force when Nationwide get the money if the rate was higher at that time. :rotfl:

forevergrey

Milarky wrote: »

forevergrey. You can post the link to the specific too if you wish

http://forums.moneysavingexpert.com/showpost.html?p=9986043&postcount=755

(Just right click and 'copy link' on the #number)

Ahhh..... ok thanks! :rolleyes:

Hungerdunger

I called at my local Nationwide on Friday to collect transfer forms and asked what would happen if the rate changed before the transfer was completed.

The cashier told me they would honour the rate currently in force when I deposited the application with them.

Thinking about it, I've deposited my £3,600 with them for this year and asked for a previous ISA to be transferred into the same ISA account, so as the account will be up and running in the next day or two it would be pretty difficult for them to pay interest on the transferred portion at a different rate. Wouldn't it?