Nationwide Building Society has issued a clarification regarding its account rules and the restrictions that may apply, following a customer's frustrating experience. The customer attempted to open a two-year fixed rate ISA but encountered difficulties when trying to fund it via bank transfer from another account.
Customer Experience
The individual contacted Nationwide through social media after being unable to open the account online. They visited a branch to set up the ISA and intended to deposit funds via a bank transfer from their Barclays or NatWest account. However, branch staff informed them that a cheque was required if they did not have an online account. Nationwide responded by explaining the rules governing ISA openings.
Official Statement
Nationwide stated: "To open an ISA, it must be funded at the time using an internal transfer, cash/cheque, or by closing another account. Debit or credit cards can't be used to open the account." The building society also offered further assistance via phone at 03457 302011 or through the app or internet bank chat.
The customer expressed frustration, noting that they were sent across the road to obtain a £20,000 cheque, with Barclays charging a £25 fee for the service.
Detailed Rules
Nationwide further elaborated: "Unfortunately, you can't use a debit or credit card to fund the account at opening. You can open and fund an ISA using an internal transfer, cash or cheque, or by closing an existing account. Once open, you may be able to make further transfers depending on the account." The provider also explained that to open an ISA via transfer, funds must come from an internal transfer from an existing Nationwide account. This option is available for accounts like the Triple Access Online ISA and Fixed Rate ISA for customers who already hold a qualifying Nationwide product.
Alternatively, customers can apply online by visiting the Nationwide website and selecting the 'Compare savings accounts and ISA's' page. A key benefit of ISAs is that they are entirely tax-free, meaning no tax is payable on interest earnings or investment growth within an ISA account.
Fairer Share Payment
Nationwide members may also anticipate bonus cash landing in their accounts soon. The building society is expected to announce details of this year's Fairer Share payment, a scheme where profits are shared among members. Over four million customers received £100 each last year, with three payments of £100 made over the past three years. The announcement is expected as part of Nationwide's full-year results in May. A spokesperson said: "Nationwide aims to make a Fairer Share payment again this year, subject to financial performance and Board approval. Any announcement, including eligibility criteria and amount, will be made on 21 May at Nationwide's end-of-year financial results."
