Which Newcastle Building Society Isa?

annie42

Hi - I have £3600 to invest in an Isa. I'm looking at Newcastle's Fixed Rate Bond Option 21 which seems straight forward but I don't really understand the terms of the Guaranteed Minimum Return Isa they also offer. Am as green as grass and would appreciate some advice as to which is the best option. I do'nt mind tying the money up for a while.

natman

annie42 wrote: »

Hi - I have £3600 to invest in an Isa. I'm looking at Newcastle's Fixed Rate Bond Option 21 which seems straight forward but I don't really understand the terms of the Guaranteed Minimum Return Isa they also offer. Am as green as grass and would appreciate some advice as to which is the best option. I do'nt mind tying the money up for a while.

I have had a quick nosey at the accounts -
The Fix rate bond option seems quite funky - allowing you to pace your money away for 2 years and not paying tax on it for a decent 6.3%

The Guaranteed minimum return looks as though it is linked to stocks and shares and trys to give you the impression if stocks and shares do well you will benefit, but if stocks and shares dont do too well, theres a minimum you get back................

Again, someone on here will be in a better position to advise than me as am quite a low risk, as both these accounts require you to tie money up for 2-5 years...... I like my one year bonds.....i am a bit of a wimp!!!!!
haa
good luck ad i am too intrested to see what people have to say on the matter

Milarky

Guaranteed Minimum Return Account ISA The return is based on either the growth of the FTSE 100 Index or an interest rate of 15% Gross/2.84% AER*, whichever is greater

Benefit from growth in the FTSE (uncapped), with this account. No matter what happens you will not lose your Initial Investment, and this account guarantees you a minimum return of 15% Gross over five years.

What's to understand really? - except that its a five year fix. I wouldn't go near a five year fix with a large chunk of ISA capital but might put a portion on that - and use the rest for 6.3% (for two years) - which is a good fixed rate currently....

annie42

Many thanks. I take your point about the five year fix.