Written by Karen Bryan
My husband saw a TV ad saying that NatWest were paying 3.9% on a 2 Year Fixed Rate Cash ISA which accepted transfers in from previous tax years. As we’ll be looking for a new home for our Halifax Cash ISAs when their 12 month bonus period ends next month, I thought I’d look into the Nat West offering. There are two reasons I don’t like them.
The highest rates of interest are only paid to new customers, what about rewarding loyal customers? As we’d be new customers we would benefit from this. At end of day, you have the play the game to get the best return on your savings, so I wouldn’t rule out the Nat West Cash ISAs because of this, but it does leave a sour taste in my mouth.
Your savings earn the lower rate of interest paid on the Variable Rate Cash ISA until the 9th of May 2012. The latest date for applying for an account is 4 April 2012. I’m not good enough at Maths to work out how much effect this has on the overall headline interest rate, but it will reduce it. I want to receive the higher publicised rate of interest from the time my money hits the NatWest Cash ISA account. Nat West isn’t the only bank employing this tactic of not paying the enticing rate of interest immediately; it seems to be an increasing trend.