Nationwide ISAs/Interest Rates

[kriskwery]

Nationwide Building Society is offering total or partial transfer of my existing ISA monies, currently on a variable rate, to a Fixed Rate ISA Bond ... 1, 2 or 3 years at 5.30%. Whilst this is indeed an increase on the present rate, could anybody advise whether it is wise to take up their offer? Who can predict what the future may hold?!! Will I be shooting myself in the foot
(a) if the variable rates rise &/or
(b) if the Society demutualises

Advice please for a waverer!

[dzug]

I don't think it is relevant to the demutualisation situation - your entitlements if any will depend on when you first became a member, not on the date your latest account was opened.

You will be shooting yourself in the foot if variable rates rise. OTH if they fall you be laughing all the way to the bank. Who can tell which will happen over the three years. A bit of both probably.

[buildersmate]

Yes the qualifying date as a Nationwide member goes back as far as 1997 now, so no worries on that score if you've been a continuous member since then.
I too have been looking at this offer, and have been trying to work out whether NW are still also offering the VARIABLE rate ISA Bond for longer-term members - haven't found it yet - but it offered about 0.50% more than the variable ISA when it is available.
Regarding future rates, its anyone's guess but with rates on a gentle rise just now, I'm inclined to go for the one year Bond - on the basis that variable rates will still be short of 5.30% this time next year. Just a hunch - could be wrong.

[WendyS]

Personally I wouldn't opt for any term longer than 1 year at the moment. There were reports in the press today about the Bank of England being very concerned about the increasing level of national debt and this could trigger another increase rate rise early in the New Year.

[kriskwery]

Mmmm, many thanks for your help. I pre-empted your answers and went for the one year option today, but left some dosh in the existing ISAs for flexibility and to hedge my bets!

I am a long term member of NW and so the Charity clause doesn't apply to me ... I wasn't sure though, if they demutualised, whether the LENGTH of time you had held an account mattered. (Nearly all my eggs are in NW's basket and I would dearly love that massive demut. windfall!!!!)

[wisepunter]

I have an ISA Bond myself because it gives you a slightly higher rate than the normal money ISA.
I also received the offer you are talking about, but I would not go for a fixed rate if I were you.
The way the markets and inflation are going the rate will almost definitely rise, stick with what you've got.