Newcastle 5 Year ISA (Issue 1) [Correction: Online Saver]

Gizmo70 · 20 May 2013 at 8:52PM

I opened an ISA with Newcastle BS in July 2009 due to mature in July 2014 but I have just had a letter through from them saying:
"After listening to our customers, we have reviewed and simplified our product range and a number of our historical products will be combined together, to reduce the number in our portfolio. As a result your Savings Account will transfer to the Newcastle Maturity+/ ISA (Issue 2) with effect from Monday 1st July 2013."
"If you feel that the Newcastle Maturity+/ ISA (Issue 2) does not meet your requirements, you may wish to consider alternative accounts offered by the Newcastle or other banks or building societies."

As this account only pays 1.5% gross, compared to 5% in the original account, I'm pretty sure I will be looking elsewhere. I know it is within their T&Cs to make this change but curtailing a 5 year account does not enhance their reputation, (I'm half expecting one to come through about the 5 year bond too) and I suspect most people will be voting with their feet, moving their money elsewhere and not wanting to touch a Newcastle BS account again for a while.

Ian :mad:

SnowMan · 20 May 2013 at 9:11PM

This will be talking about some sort of easy access saver rather than the 5 year ISA bond at 5%.

I've got a similar letter but the account reference (which is shown at the top under your address) is to an on-line easy access saver (non-ISA) with £1 in it rather than the 5 year bond (which was available in July 2009 in both ISA and non ISA formats) which I also have in non-ISA form.

It's not the best worded letter I have ever seen though.

Can you check your account reference on the letter against the accounts you hold and report back?

le_loup · 20 May 2013 at 10:25PM

If it was a fixed rate product, they cannot reduce the rate mid term.

jamiex · 20 May 2013 at 11:01PM

Where in the T&Cs does it say they're allowed to do this?

Gizmo70 · 20 May 2013 at 11:24PM

Yes, you are correct, a badly worded letter. No mention of the account name, and the name of the replacement account misled me, nothing to do with replacing my ISA account, it was my online saver account.
I still feel like ringing them up to complain about the letter.

robledouk · 21 May 2013 at 4:38AM

I also have this account but have not received the letter (yet). Has anyone else who has this account with NCL got this letter?

Seriously annoyed if they do this and whether they can.

EDIT: sorry misread..I have the 5 year bond (not ISA) that came out the same time...but I half expect them to change that also if this ISA one is anything to go by.

evenasus · 21 May 2013 at 10:16AM

I received this letter too, although it wasn't an ISA I took out, it was their 5 year fixed rate bond in 2009.

I agree it is a very badly worded letter.

SnowMan · 21 May 2013 at 12:49PM

This savings range simplification which the letter is about is mentioned on the Newcastle BS website here. The word variable in the title heading amongst other things clarifies which accounts are affected

Current and Closed Issue Variable Savings Interest Rates

The AGM booklet accessed from that page lists the accounts affected (and as we know doesn't affect the 5 year bonds whose terms can't be changed).

While I fully agree with the comments above it is hard to get annoyed when we are getting 2.1% above inflation (5% - 2.9% RPI) gross at the moment, with the option to withdraw with 90 days notice until July 2014 should we need the cash :j:beer:

Newcastle 5 Year ISA (Issue 1) [Correction: Online Saver]

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