Continued Isa delays at Nationwide

There are still delays with Isa transfers admitted the Nationwide in spite of the building society promising that the problem was sorted. Graham Beale, the chief executive, apologised to customers for the delay and said there are around 130 cases waiting to be completed. Some transfers are taking up to several months.

The chief executive said the backlog was due to a growing amount of savers consolidating their Isas this year. Mr Beale added that it was not down to the introduction of a new operating system during peak ISA season.

However, he added that some providers were taking far too long to pass on details of clients’ funds and this is preventing them from processing transfers quickly. The Nationwide has increased the amount of employees to deal with the backlog.

However, nearly 6 weeks after the matter was highlighted, a spokesperson for Nationwide said the problem was solved and it was back on track to opening accounts within 5 days of receiving a cheque from the Isa’s old provider.

The old provider must provide details of the account to the new provider within 30 calendar days once it has received the request to transfer, according to Isa rules.

Nationwide Instant Isa pays 5.55% tax-free on amounts up to £10,000, 5.65% on £10,000 and 5.75% at £25,000. Together with NatWest, Nationwide is among the top-paying cash Isa accounts on the High Street.

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