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

opinions4u

Skipton poised to takeover Newcastle.

"Distressed mutual Newcastle, the country's 10th largest building society, is believed to be in 'advanced' takeover talks with larger rival Skipton. "

Probably relevant to any decision. I will post the story in its own right too.

Dopple

At first I wasn't interested in this due to the 5 year fix, but now it's been confirmed that there is no penalty to withdraw (just 3 months notice) I am.

Trouble is, I sent a £20K cheque to the Skipton yesterday to open the 8 month Bond at 3.85%.

Is there still time to tell the Skipton I've changed my mind and open the Newcastle Bond instead?

Steve_xx

Dopple wrote: »

At first I wasn't interested in this due to the 5 year fix, but now it's been confirmed that there is no penalty to withdraw (just 3 months notice) I am.

Trouble is, I sent a £20K cheque to the Skipton yesterday to open the 8 month Bond at 3.85%.

Is there still time to tell the Skipton I've changed my mind and open the Newcastle Bond instead?

Apparently not. Their term B4 prevents you from cancelling under the 14 day rule when the account you have opened is a fixed rate one.

However, the important word in that clause is "opening". In your case you should question at what point the account becomes open? Is it at the point of applying for it, or is it on receipt of your cheque, or is it on clearance of the cheque?

You could phone them and ask.

opinions4u

Dopple wrote: »

At first I wasn't interested in this due to the 5 year fix, but now it's been confirmed that there is no penalty to withdraw (just 3 months notice) I am.

Trouble is, I sent a £20K cheque to the Skipton yesterday to open the 8 month Bond at 3.85%.

Is there still time to tell the Skipton I've changed my mind and open the Newcastle Bond instead?

Stop the cheque.

juicyjude

Well now a further problem may arise! I was interested in setting one of these bonds up, but if it is going to be merged with the Skipton I already have £47K with them. I dont want to be in a situation whereby I am well over the £50K com figure if they go belly up!!!! Anyone any comments on this or advice please would be welcome, thanks

Dopple

opinions4u wrote: »

Stop the cheque.

Will that cost me any money? (I'm with the Nationwide)

opinions4u

Dopple wrote: »

Will that cost me any money? (I'm with the Nationwide)

Can't find any reference to a charge on their web site.

http://www.nationwide.co.uk/search/DisplayArticle.aspx?article=1503

Most banks do charge, £5-£10 is usual, unless the cheque is lost or stolen .

zzzLazyDaisy

juicyjude wrote: »

Well now a further problem may arise! I was interested in setting one of these bonds up, but if it is going to be merged with the Skipton I already have £47K with them. I dont want to be in a situation whereby I am well over the £50K com figure if they go belly up!!!! Anyone any comments on this or advice please would be welcome, thanks

You'll be okay until at least Dec 2010, as the building societies will keep their separate identities until then. See....

http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/072.shtml

alanq

zzzLazyDaisy wrote: »

You'll be okay until at least Dec 2010, as the building societies will keep their separate identities until then. See....

http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/072.shtml

Probably true but the article only says that it is a proposal so not certain yet.

claire07

Although withdrawals are OK with 90 days notice I can't see anywhere in T&Cs whether you have to keep the minimum of 5k with them for the 5 year fixed.