Money News
From Monday 7 July, Nationwide Building Society has temporarily closed its cash Individual Savings Accounts (ISAs), including Fixed Rate ISA Bonds, to customers transferring their ISA from other providers. The Society will continue to offer new ISAs for people who have not yet used this year's ISA allowance, using cash or a cheque but not a transfer. Existing Nationwide ISA holders will still be able to transfer between the Society's ISA products.
Matthew Carter, savings director at Nationwide, says, "Our ISA products have all offered a consistently competitive rate of interest and, as a result, we have seen an unprecedented increase in the number of ISA transfers into the Society. During the first three months of this financial year alone, volumes have been almost 400% up on last year."
He added, "We will reinstate the transfer-in facility once we are confident that the service we can provide is back to the standards we and our customers expect. Existing customers who have already initiated the ISA transfer process to Nationwide can rest assured that their application is unaffected by this change. Confirmation of their new ISA will be sent to them as soon as possible."
Nationwide believes the ISA system is outdated and is calling for improvements to be made to facilitate swifter transfers and improve the customer experience. The Society has written to the HMRC and intends to work with the Government, industry and regulators to bring about change and improve the situation.
The Nationwide Instant Access ISA paying up to 5% AER and the one, two and three year Fixed Rate ISA Bonds will continue to be made available for any customer not making a transfer from another provider, at 6.15% AER. Existing members of three years or more may also open a Members' ISA Bond paying up to 5.25%. Nationwide's Legal and General stocks and shares ISAs are unaffected by these changes and the Society will continue to accept transfers into these products.
14 July 2008 © Moneyextra.com
Moneyextra.com recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.