Kudos to Nat West for not shafting its previous ISA savers this year

It’s usual for banks to quietly trash the interest paid on older accounts, on the principle that most people can’t be bothered to move and the bank gets to keep the money they’d pay out in interest. so you end up with some derisory interest rate of 0.5%.

So hat tip to Nat West. I was getting ready to shift last year’s cash ISA, and looking mournfully at the paltry 2.75% that the best buy ISA accounts on Martin Lewis’s site offer for new business. Then I looked at the current rate I am getting, and so far, touch wood, they have retained the interest rate at 3.01% even though the account isn’t available for new business. That’s better than I could get if I shift it. So I get to save all the aggro of moving the ISA and get a better rate.

What’s not to like… oh yes, it’s that the RPI is skyrocketing at 4.5%, so at current rates I am losing 1.5% a year in purchasing power. Mind you, last year I was getting 3% when RPI was negative, so it wasn’t all bad. But this does not look like it’s going to a good place in future.

RPI - looks like 4.5% and rising. Yikes

[…] have an emergency fund of about £7500 in a two year’s back to back Nat West Cash ISA, which, all credit to them,  has actually continued to provide a3%-ish interest rate. Now on reflection, there is a lot to be […]

[…] hats off to NS&I. I’ve just tossed £8k in their direction. I can now decommission my Cash ISA, which had been guardian of my emergency fund until now. However, I’m not going to withdraw […]

 

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