Nationwide Building Society has set out the restrictions that apply when opening a fixed rate ISA, after a customer raised concerns about a difficult experience trying to deposit funds at a branch. The clarification comes amid broader scrutiny of how accessible savings products are for those without existing accounts at the lender.
The issue emerged when a Nationwide customer attempted to open a two-year fixed rate ISA. Having been told they could not complete the process online, they visited a branch and sought to fund the account via a bank transfer from either a Barclays or NatWest account. Branch staff informed them the deposit “has to be a cheque if you don’t have an online account”, a requirement that led the customer to seek a £20,000 cheque from Barclays, which reportedly quoted £25 for the service.
Nationwide responded to the complaint through social media, stating: “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.“
Funding Restrictions and Available Alternatives
The building society went on to clarify the specific conditions under which a bank transfer can be used to fund an ISA at opening. According to Nationwide, this option is limited to customers who already hold a qualifying Nationwide product, with the funds required to come from an internal transfer from an existing account with the group. Accounts such as the Triple Access Online ISA and Fixed Rate ISA are among those where this option is available.
For customers without an existing Nationwide account, the practical routes available at the point of opening remain limited to cash, cheque, or the closure of another account. The group also directed the customer to its website, where savings rates and account comparisons are listed, and offered contact through its phone line or in-app chat facility.
The restrictions highlight a friction point for prospective savers looking to move larger sums from external banks, particularly those who are not already Nationwide members and cannot make use of internal transfers.
Fairer Share Payment Expected in May
Separately, Nationwide members may receive a bonus payment in the coming weeks. The mutual is expected to announce details of its Fairer Share scheme as part of its full-year financial results, scheduled for 21 May. The programme, which has distributed £100 to eligible members in each of the past three years, reached over four million customers in its most recent round.
According to a Nationwide spokesperson, the society “aims to make a Fairer Share payment again this year, subject to financial performance and Board approval,” with any announcement regarding eligibility and the payment amount to follow at the results presentation.
ISAs remain a popular savings vehicle in the United Kingdom due to their tax-free status, interest earned and investment growth within an ISA are exempt from tax, making them a straightforward option for individuals looking to shelter savings from HMRC.
