Newcastle Building Soc - New 5 year-5% BOND (Not an ISA) NOW CLOSED

SnowMan

malik999 wrote: »

Did everyone go with monthly or yearly interest?

AER is 5% if paid annually but AER is 4.85% if paid monthly so went for annual option.

That is equivalent to a difference of about £15 in gross annual interest (£12 net of basic rate tax) per 10K invested.

The comment on their website could confuse some. It talks about interest on interest but that interest on interest just brings up the gross rate from 4.75% to 4.85% AER (=100 x {(1+0.0475/12)^12-1}) which is still less than the AER of 5% on the annual option.

D1zzy

Anual for me - shove the tax into next year

Lorian

SnowMan wrote: »

Apologies. It must have been the 7 figure reference from the direct debit confirmation letter that I typed in (ignoring the NBS bit at the front) rather than the application form reference number which is 9 digits.

Thats seems tohave done the trick, I had to include a leading zero on this number, and then it stopped asking me for my passport. We'll see in a few days if it's worked, thanks.

Speculator

D1zzy wrote: »

Anual for me - shove the tax into next year

Same with me. If I chosed monthly, I would probably go over my personal allowance for this tax year.

anselld

Normally if you leave the money in the account to compound it works out the same either way, but in this instance I can't see how, which is a bit unfortunate as I chose monthly :-(

Speculator

anselld wrote: »

Normally if you leave the money in the account to compound it works out the same either way, but in this instance I can't see how, which is a bit unfortunate as I chose monthly :-(

Phone them tomorrow morning and ask to change to annual interest.

Their switchboard no. 0191 244 2000, ask for savings dept. Open from 9am.

evenasus

I chose annual.

MarkyMarkD

Indeed, most institutions do not discriminate against those wanting monthly interest.

As Newcastle are in cashflow difficulties - evidence by launching a way over-the-odds product like this - it is unsurprising that they are discouraging monthly interest. In fact, it's surprising they are offering it as an option.

anselld

Rang them up. The assistant didn't really understand why the rates were different, but said it was OK to change back to annual if I write in to confirm. Thats now done.

Thanks for pointing out the difference :beer:

geoffky

has anyone any idea how safe this company is..or is it wise to keep to 50k limits