5 year fixed rate ISA at 5% - Newcastle BS!

samizdat

My transfer from First Direct to Newcastle has been effected but there was an 11-day gap between the money leaving FD and the date it has been credited by Newcastle BS (as per Passbook).

A bit annoying, really, but as it has only cost me about £8 I don't think it is worth pursuing.

LondonZoe

Sorry but you're too late guys as I spoke to Newcastle today & this ISA issue is now closed. No new money can be put into the account and no new funds can be transferred even if you are in the process of applying like I was. I even have an account number but because they hadn't received my ISA transfer application I was deemed to be too late!!!

I tried to apply for the Newcastle Building Society 5% ISA after I got Martin's e-mail alert & was successful in my online application. However, I got a mail saying that I needed to send a photocopy passport. I was in the process of organising this & my ISA transfer form which you have to print & send when I got a letter saying that my account was open and I needed to fund it within the next 2 weeks by cheque or deposit. I phoned today & was told that no, I didn't need to send a copy passport as the account had been opened anyway but that I now couldn't fund it as it was now no longer available as I hadn't returned the paperwork in time - I am fuming!!!!

No time limit was given online and normally you have 30 days to deposit funds from an account being opened but not in this case. You are supposed to have psychic powers to know when the ISA is going to close apparently!!

:mad:

LondonZoe

Obviously if I had read all the posts above when applying I would have known when the postal closing date was I guess - you live & learn. I'll be looking for the next best rate now then....:think:

MarkyMarkD

I am not sure why LondonZoe thinks that it is normal for providers to allow 30 days to deposit funds from an account being opened - that is certainly NOT normal for fixed rate accounts. Most providers let you deposit funds whilst the issue is open and that is it: they would normally require cheque with application and if the application and cheque don't arrive in time, they've missed the boat.

It is only because Newcastle allowed this to be opened online - but haven't worked out a sensible way of taking the funds online (i.e. by debit card, which is instant and guaranteed for them) - that they have ended up in the complex situation of allowing funding up to a deadline date.

For ISA transfers, of course, a large degree of the transfer timescale is in the other provider's hands and that is why Newcastle have allowed transfers in to occur after the withdrawal date - but conditional on them having received the transfer form in time. Honestly, that is fair enough.

adrian2000

I took out the 5% account with the Newcastle Building Society and the original terms said you had to give 90 days notice if you wanted to withdrawl your money, but it looks like they mad a mistake and they have written to confirm that you only need to give 30 days notice!!!

Reaper

I emailed Newcastle asking if this really was change in the T&C and if so why only a few people had been informed. I just received this reply:

The Five Year Fixed Rate Isa is now a reduced notice period of 30 days on withdrawals or transfers out. Notification of this change is due to be issued to all Isa customers this week.

So despite my doubts it is true - the already fantastic terms on this gem of an ISA have just got significantly better.

MarkyMarkD

Odd. It was good enough already.

Deleriad

Got my welcome pack for this ISA yesterday and it plainly says that there was some confusion over the terms and conditions and clarifying that the 30 day notice period is correct.

Pretty nice.

sedge

Hi Guys,

I applied within the deadline for the 5 year fixed bond at 5%, with 90 day penalty-free withdrawal.
Just to be certain, after filling the application online, I called customer services and they confirmed the account would be set up upon receipt of a copy of my passport.
Having sent it all in, I received 2 letters confirming my direct debit details and that everything would be processed normally but I called this morning because my account with Barclays still hasn't been debited.
Newcastle tried every excuse to tell me that it was my fault that the direct debit hadn't been processed and wouldn't be now the offer is closed, including that I didn't give a date for the funds to be debited from my account. However, the online application couldn''t be completed unless you did this and the earliest date the funds could be debited was 24th July, which I confirmed.
It's clear Newcastle B/S received too many applications for this savings bond and are trying to wriggle out of honouring timely applications by any means possible. I am going to report them to the financial ombudsman because my trail of correspondence from them confirms I followed their instructions correctly and that they have chosen not to debit the funds to render me ineligible for the withdrawn offer.
I just wondered if any other moneysavingexpert readers have experienced the same treatment.

dov

sedge wrote: »

Hi Guys,

I applied within the deadline for the 5 year fixed bond at 5%, with 90 day penalty-free withdrawal.
Just to be certain, after filling the application online, I called customer services and they confirmed the account would be set up upon receipt of a copy of my passport.
Having sent it all in, I received 2 letters confirming my direct debit details and that everything would be processed normally but I called this morning because my account with Barclays still hasn't been debited.
Newcastle tried every excuse to tell me that it was my fault that the direct debit hadn't been processed and wouldn't be now the offer is closed, including that I didn't give a date for the funds to be debited from my account. However, the online application couldn''t be completed unless you did this and the earliest date the funds could be debited was 24th July, which I confirmed.
It's clear Newcastle B/S received too many applications for this savings bond and are trying to wriggle out of honouring timely applications by any means possible. I am going to report them to the financial ombudsman because my trail of correspondence from them confirms I followed their instructions correctly and that they have chosen not to debit the funds to render me ineligible for the withdrawn offer.
I just wondered if any other moneysavingexpert readers have experienced the same treatment.

They didn't take the money for a direct debit I had set up correctly. They agreed on the phone for a cheque to be sent (after deadline) together with an explanatory note. They didn't argue at all.

Can you see the direct debit details on your Barclays account?