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

Reaper

I feel Moneyfacts ought to include this under their "Notice Accounts" as well as fixed term. Firstly because people looking for a notice account will miss out if they don't but mostly because it will then put the average up which Investec use to set the interest rate on their High 5 account!

Unfortunately I can't find any email address for Moneyfacts other than press ones or I would suggest it to them as well as pointing out they have the details wrong on their News Page which still talks about loss of interest.

Arthurian

http://www.moneyfacts.co.uk/feedback/default.aspx

musehead

This is basically a 3 month notice account, the same as Investec Hi-5, except it is limited issue so you only have a certain window in which to fund it.

Steve_xx

musehead wrote: »

This is basically a 3 month notice account, the same as Investec Hi-5, except it is limited issue so you only have a certain window in which to fund it.

Not really the same as the Investec account, as the Investec account isn't fixed at 5% for 5 years.

DocProc

What's the penalty applied to the balance after giving a 90-day notice and making a part withdrawal?

Or does the whole lot HAVE to be withdrawn because you can't make part withdrawals?

Steve_xx

DocProc wrote: »

What's the penalty applied to the balance after giving a 90-day notice and making a part withdrawal?

Or does the whole lot HAVE to be withdrawn because you can't make part withdrawals?

There appears to be no penalty or loss of interest during the notice period and it seems that you do not have to withdraw the lot.

Here is the summary of the account:

http://www.newcastle.co.uk/savings/5yearbond

I suggest that you call them if you unsure of any of the terms.

Reaper

I asked Moneyfacts to correct their news item which they have now done:
http://www.moneyfacts.co.uk/Article/79691/newcastle-bs-climbs-the-fixed-rate-bond-league.aspx

However they rejected my suggestion to include it in the "Notice Accounts" section as well as fixed rate. They classify it solely as fixed rate. So sadly it won't give the Investec High 5 interest rate a boost.

SnowMan

It doesn't actually say on their website that withdrawals are PENALTY FREE with 90 days notice. But then again it doesn't say there is a penalty. If they do intend to apply a penalty I can't see how they can get away with the description in the product terms. It would be outrageous if they tried to apply a penalty based on their literature.

But without a penalty on withdrawal the account seems too good to be true as effectively it is a 1 year fix at 5% with options to extend (or shorten) enabling you pretty much to stay in until around the time interest rates go back above 5%, i.e. with a mere 90 days notice and no loss of interest. So it beats every fixed rate account by a mile.

I've applied anyway. Have your passport ready if you apply on line as you type in a number from that as part of the verification process. You can set up a bank account from where the money is taken and they set up a direct debit to take the money in about 10 days time - they tell you when the money will be debited. That assumes you are electronically verified like I was. There is an option to send in a cheque instead.

I will see what developments there are. I still don't believe this somehow.

Edit: spoke to their helpline. They said there is no loss of interest or penalty on withdrawal provided the 90 days written notice is given. Crikey.

Reaper

Yes it is a stunning deal for those with lump sums. Be sure to check out their ISA which has exactly the same terms and allows transfers in.

alanq

SnowMan wrote: »

Have your passport ready if you apply on line as you type in a number from that as part of the verification process.

It is an optional field. It helps them to verify ones identity but I left it blank and they still managed to authorise me (a new customer) in other ways while I was online.