Newcastle Building Society 6.00% AER!

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garreh
garreh Posts: 114 Forumite
in ISAs & tax-free savings
***
It seems they are not allowing you to open an ISA account anymore, looks like they gone down the pan.

AVOID.
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I've just stumbled across this Cash ISA account from Newcastle Building Society which pays 6.00% AER on balances over £3,000 which is whopping difference from my current Nationwide ISA which only pays 4.20%.

Yesterday, I requested for an ISA to be opended with NBS. The online form only took 5 minutes to complete. I'm hoping it will all go through smoothly so I may transfer funds from my current ISA.

Has anyone had experience with NBS, good or bad? Whats the online system like?

... And more importantly, is the rate likely to drop below 6.00% come next April?
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  • Baldur
    Baldur Posts: 6,565 Forumite
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    garreh wrote: »
    ... And more importantly, is the rate likely to drop below 6.00% come next April?
    According to the website, it could drop well before next April:
    Variable interest rate is guaranteed to be no less than 0.50% above Bank of England Base Rate on balances of £3,000 and over until 18 June 2009. Balances up to £3,000 receive 5.50% Gross. All rates will not fall below the Bank of England Base Rate until 18 June 2010.
  • Milarky
    Milarky Posts: 6,356 Forumite
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    Going, going... gone!
    .....under construction.... COVID is a [discontinued] scam
  • garreh
    garreh Posts: 114 Forumite
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    Milarky wrote: »
    Going, going... gone!

    Oh what is wrong with the economy! How come this news isn't reflected on their website?

    Think I might just open an ISA with Abbey paying 5.5% APR. Seems to be the only stable bank.
  • caveman38
    caveman38 Posts: 1,297 Forumite
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    garreh wrote: »
    Oh what is wrong with the economy! How come this news isn't reflected on their website?

    Think I might just open an ISA with Abbey paying 5.5% APR. Seems to be the only stable bank.

    If you're going with the Abbey at that rate. You may as well go to the B&B with a rate of 6.25% - only a 1 Yr. fix though.
  • garreh
    garreh Posts: 114 Forumite
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    caveman38 wrote: »
    If you're going with the Abbey at that rate. You may as well go to the B&B with a rate of 6.25% - only a 1 Yr. fix though.

    This looks like a very good rate but I'm a little concerned about the no withdrawal permitted until maturity. When is the maturity on the B&B ISA account? I'm just thinking if the rate went down after a year, would I be able to transfer to another bank keeping my interest?
  • Baldur
    Baldur Posts: 6,565 Forumite
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    garreh wrote: »
    I'm just thinking if the rate went down after a year, would I be able to transfer to another bank keeping my interest?
    There's no 'if' about it, a 1 year fix is a 1 year fix. Of course you will be able to transfer your funds at the end of the term - most of my Cash ISAs since the scheme began have been fixed rates.
  • LumpyCustard_2
    LumpyCustard_2 Posts: 267 Forumite
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    Milarky wrote: »
    Going, going... gone!

    You can still fill in the application online though, it seems - I just did, and have the email to say my application was successful.
  • garreh
    garreh Posts: 114 Forumite
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    Baldur wrote: »
    There's no 'if' about it, a 1 year fix is a 1 year fix. Of course you will be able to transfer your funds at the end of the term - most of my Cash ISAs since the scheme began have been fixed rates.

    Thats good news. What I meant is if the rate goes down after a year. I assume its fixed rate until Apr 09 after which a new fixed rate is set? If this new rate isn't competitive, its good to know I can ditch and switch, keeping interest earned.
  • Baldur
    Baldur Posts: 6,565 Forumite
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    garreh wrote: »
    Thats good news. What I meant is if the rate goes down after a year. I assume its fixed rate until Apr 09 after which a new fixed rate is set?
    They may not even offer another fixed rate product when this one matures, depending on what happens with interest rates between now & then - several providers who offered extremely competitive FRISAs a few weeks ago are currently not offering them at all.
  • garreh
    garreh Posts: 114 Forumite
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    Baldur wrote: »
    They may not even offer another fixed rate product when this one matures, depending on what happens with interest rates between now & then - several providers who offered extremely competitive FRISAs a few weeks ago are currently not offering them at all.

    Yeah thats very true. So if I did invest in this fixed rate ISA, would it mean I have a fixed rate of 6.5% from the time of opening OR is it up until the end of the tax year / Apr 09? Either way, I guess this one of the top rates so worthwhile opening?
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