Nationwide Fixed Rate ISA Bond

nebs_247

Hi,

I’m new to the forum and I am after some advise on ISA.

Basically I have an ISA with the Nationwide and in previous years I have put various amounts per month to a maximum of £3000.

Last year (2007/2008) I had spare £3000 so I topped up my ISA in one go. I decided to do this so that maximum interest would be applied. As I spoke to the cashier I was told that I could go for a higher interest rate which could be fixed for 1 or 2 years if I applied for “fixed rate ISA bond” I agreed and went for the 2 year fixed.

Yesterday I popped in to the nationwide to basically top up my “fixed rate ISA bond” with a payment of £2000 (I would then follow payments of a further £1600 over the months). I was told that I could not pay into the fixed rate ISA bond as its fixed for 2 years. Is this correct?

I advised the manager that in previous years I had always topped up over the months to the maximum amount (£3K) but the manger said that this was “fixed rate ISA bond” which I had agreed. Anyway the manager said that I could open another ISA account where I could invest to £3600 but not to my £24K ISA account.

What I would like to know is:

1)When my fixed rate ISA bond expires in April 2009 what would happen to this account? Would it become an instant access account? I would ideally like to move to a account where I could top my £24K (by topping up £3600 in one go)

2)Are nationwide right in saying that I can not top up 2 Year Fixed Rate ISA Bond?

3)Do I need to open another ISA account with nationwide or another. Who is offering the best deal for a 1 year fixed?

4)Could I tie both account together by transferring the smaller amount to the bigger amount and getting more interest in return

I hope this makes sense and someone out there can help me.
Any advice is greatly received.

bristolleedsfan

nebs_247 wrote: »

Yesterday I popped in to the nationwide to basically top up my “fixed rate ISA bond” with a payment of £2000 (I would then follow payments of a further £1600 over the months). I was told that I could not pay into the fixed rate ISA bond as its fixed for 2 years. Is this correct?

I advised the manager that in previous years I had always topped up over the months to the maximum amount (£3K) but the manger said that this was “fixed rate ISA bond” which I had agreed. Anyway the manager said that I could open another ISA account where I could invest to £3600 but not to my £24K ISA account.

What I would like to know is:

1)When my fixed rate ISA bond expires in April 2009 what would happen to this account? Would it become an instant access account? I would ideally like to move to a account where I could top my £24K (by topping up £3600 in one go)

2)Are nationwide right in saying that I can not top up 2 Year Fixed Rate ISA Bond?

3)Do I need to open another ISA account with nationwide or another. Who is offering the best deal for a 1 year fixed?

4)Could I tie both account together by transferring the smaller amount to the bigger amount and getting more interest in return

I hope this makes sense and someone out there can help me.
Any advice is greatly received.

You can open as many Nationwide Fixed Rate accounts as u desire at the prevailing rate so the fact you cant add to existing ones is irrelevant.

When the Fixed Rate accounts mature u would be wise to look for a new home for them depending on what Nationwide are offering at the time. ( start looking around a month before the fixed rates are due to mature.)

Bradford and Bingley are offering the best One Year Fixed Rate ISA 6.25% ( no transfers in)

Obviously the whole idea of a fixed term is that the funds are there for the complete specified term and administration is kept to a minimum so its impractical to add funds to a fixed rate one or two months down the line. ( although some providers allow this facility, they tend to be limited issues whereas Nationwides Fixed Rate accounts tend to be ongoing, the 6.15% rate has been in force since July 2007)

free4440273

...and just to add, for a longer duration period, Halifax are doing a fixed-rate ISA at 6.20:)

bankersmug

I've just got my fingers burnt with the Northern Rock Fixed ISa - it seems unlike with Nationwide you can't keep taking out new bonds.

RayWolfe

It's so on all fixed rate bonds. They are really for people who can put in the max to start.

free4440273

....but you can open additional bonds:)