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

masonic

dov wrote: »

So it maybe possible to transfer my entire ISA balance to Newcastle fixed rate now but add the 1.5K to another Newcastle ISA in October.

I noticed that, but there is also contradictory information on the website. It's therefore worth confirming. Other ISA providers have done this in the past, although it seems to stem from a creative interpretation of the ISA rules.

dov

masonic wrote: »

I noticed that, but there is also contradictory information on the website. It's therefore worth confirming. Other ISA providers have done this in the past, although it seems to stem from a creative interpretation of the ISA rules.

yep Nationwide I believe as one example. I'll email them and see what they say.

MarkyMarkD

So, the NatWest product isn't 4.05% guaranteed to Nov 2009 at all, it's 2.05% variable plus 2% fixed bonus and could drop to 2% tomorrow?

Regarding the "two ISAs in one year" I don't think Newcastle and Nationwide are wrong to interpret the ISA rules the way that they do; I just think that most other cash ISA providers are unable to do the same thing and therefore don't allow it. Newcastle and Nationwide must simply monitor ISA contributions per customer, not per account, and report them to HMRC in aggregate.

dov

MarkyMarkD wrote: »

So, the NatWest product isn't 4.05% guaranteed to Nov 2009 at all, it's 2.05% variable plus 2% fixed bonus and could drop to 2% tomorrow?

Yes. See this for interest details.

dov

dov wrote: »

yep Nationwide I believe as one example. I'll email them and see what they say.

Here's their reply:

Dear xxxx

Thank you for your recent Email.

Please note that if the account is a closed issue then you cannot add the additional £1500. You will however be able to invest the additional funds into any other Isa within our range in October.
If you have any further queries please contact us on 0845 606 55 22, our opening hours are 8am-8pm Monday - Thursday, 8am-6.30pm Friday and 9am-5pm Saturday.

Yours sincerely,

NewcastleNet Savings

I'm impressed by their quick response.

masonic

For those transferring in with notice periods to serve, I received the following in a letter from Newcastle today:

...Please be advised that should your ISA account with your current ISA Manager require a notice period before transfer then you must contact them to arrange the transfer of funds prior to the closing date of this product.

MarkyMarkD

Yes, I got that letter too. But that isn't necessarily logical or fair.

They accept that they will have to wait up to 30 days for other ISA providers to transfer funds to them.

If the other ISA has a notice period of (say) 45 days, then they will only get the funds 15 days later than they would otherwise expect.

I have probably already gone past the extra 15 days, and they haven't withdrawn the product.

So I'm expecting no problems with them having to wait another month.

Incidentally, I was transferring from Standard Life Bank, Barclays and Manchester BS.

Standard Life have already closed the account and transferred the funds.

Not a squeak from Barclays. And not expecting a squeak from Manchester BS given the notice period.

masonic

Looks like this may be pulled tomorrow according to the info in this thread.

travel_freak

Hi

Many thanks to those who have posted above on this. I've opened the account version at 5% and am interested in opening an ISA as well but not sure if it will work and/or make good sense - so would welcome anyone's advice.

I currently some of my ISA with Lloyds TSB at the 3.75% (I think) early bird rate they offered. But to transfer the monies from here to Newcastle I think I can do it instantly (without notice) but I would lose 90 days' interest.

Have been trying to work out whether the higher rate with Newcastle (5%) warrants losing the 90 days interest with Lloyds. I'm not brilliant at these things so would welcome someone's advice or a better formula I could use to work this out properly.

My somewhat crude calculations suggest I may be £100 or so better off but I may not have worked this out properly(!).... I certainly wouldn't sniff at an extra £100 in tax free interest if that is right. Pls can anyone help?

Can't believe it's being pulled tomorrow and have only just found out about it - but don't want to jump in and make wrong decision ...

Many thx in advance.

travel_freak

As an afterthought, during the online application process do you have to state then if you are going to transfer funds in and if so how much or could I apply to secure the account now and work out how much to put in later (of course accepting that when they close the offering it won't be possible to add any further cash)?

Many thx.