Newcastle Building Society

Renfro

What do people reckon to this ISA?

It's a long 5 year term, but you can still withdraw on 90 days notice.

Newcastle Building Society has gone straight to the top of the best buys, offering a rate of 5% on its five-year ISA. Savers can invest up to £43,200 into the ISA, as transfers in are permissible. The online-based account matures on July 31 2014 and savers can get access to funds subject to 90 days' notice.

http://www.telegraph.co.uk/finance/personalfinance/savings/5647284/Wealth-workout-savers-win-as-banks-tussle-for-funds.html

Can't see it listed on MSE though.

apt

It is discussed here on at least two threads. I am not sure why the Torygraph quotes £43,200. You can transfer in more than that if you want, although you would be exceeding the £50,000 FSCS limit by the end of the 5 years.

Jonbvn

As per previous poster mentioned discussed already. However, it does seem like a good account.

From what I understand they may close this issue to new money as soon as they collect sufficient funds. Given that this is best payer at the moment, I wouldn't be surprised if this happens quickly.

ManAtHome

apt wrote: »

I am not sure why the Torygraph quotes £43,200.

Maybe trying to be "clever" - looks to me like the maximum possible you could have invested with Tessa and cash ISA allowances to date (likely to be now over 50k unless you picked something close to 0% interest...).

surfsister

if i have £3200 in this year's isa elsewhere can i`start a newcastle one`for £400 and transfere over or not?

Steve_xx

surfsister wrote: »

if i have £3200 in this year's isa elsewhere can i`start a newcastle one`for £400 and transfere over or not?

Easier to put the £400 into your existing ISA, then transfer to Newcastle.

Steve_xx

apt wrote: »

It is discussed here on at least two threads. I am not sure why the Torygraph quotes £43,200. You can transfer in more than that if you want, although you would be exceeding the £50,000 FSCS limit by the end of the 5 years.

I wouldnt be surprised if the FSCS limits were increased within the next 5 years.

Pontiac

Can someone clarify something for me please. Ok I understand that this rate could be changed at anytime and they're not guaranteeing to give you it over the five year period. So am I right in thinking, I stick this years full amount in now and also transfer previous years and that sticks at 5%. But sometime later in the year, before I'm allowed to stick next years £3600 in, they could have changed the rate? So the new money will be at a lower rate? But the old money higher??

Jonbvn

Pontiac wrote: »

Can someone clarify something for me please. Ok I understand that this rate could be changed at anytime and they're not guaranteeing to give you it over the five year period. So am I right in thinking, I stick this years full amount in now and also transfer previous years and that sticks at 5%. But sometime later in the year, before I'm allowed to stick next years £3600 in, they could have changed the rate? So the new money will be at a lower rate? But the old money higher??

No it is a FIXED rate account at 5%. The rate will not change over the 5 years.

Once they close the issue, you will not be allowed to put more money into this account. When will this be - who knows???

Pontiac

Ok so you're saying if they they won't drop the rate they could just close the issue, so I may not be able to pay anything in next year or for the rest of the term after initial deposits? And then have to give em 90 days notice to switch the stuff to a better provider, leaving a minimum of £1 in this account?

Steve_xx

Pontiac wrote: »

Ok so you're saying if they they won't drop the rate they could just close the issue, so I may not be able to pay anything in next year or for the rest of the term after initial deposits? And then have to give em 90 days notice to switch the stuff to a better provider, leaving a minimum of £1 in this account?

The rate is fixed.

They may close the issue at which point you will not be able to add more money to it.

You have to give 90 days notice if you want to move the money out.

You do not need to leave £1 in the account.