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

Steve_xx

G_M wrote: »

I've read this thread carefully and no one seems to have answered this, except by guesswork.

It's a 5 year bond. There's a min investment of £5K. Agreed penalty-free withdrawals are allowed subject to 90 days notice, but it is still unclear what happens if you withdraw so much that you have less than £5K left, or close the account. Unless anyone knows different??

Cynical? Suspicious? Moi?

If you wish to keep less than 5k in it you would have to close it.

anselld

Steve_xx wrote: »

If you wish to keep less than 5k in it you would have to close it.

.... and that is the question - can you close it penalty free with 90 days notice?

Steve_xx

anselld wrote: »

.... and that is the question - can you close it penalty free with 90 days notice?

You have to give 90 days notice to withdraw some or all of your money and to close the account. During this 90 day period you will not suffer any loss of interest.

You must not let the minimum deposit fall below 5k or you will have to close the account completely.

If I have 6k in the account and I want to withdraw 3k, then I cannot do it and keep the account open. Instead I will have to instruct the society to close the account and I will have to give the due 90 days notice. At the end of the 90 day period the account would be closed and the funds transferred out of it, inclusive of any interest accrued.

G_M

Steve_xx wrote: »

You have to give 90 days notice to withdraw some or all of your money and to close the account. During this 90 day period you will not suffer any loss of interest.

You must not let the minimum deposit fall below 5k or you will have to close the account completely.

If I have 6k in the account and I want to withdraw 3k, then I cannot do it and keep the account open. Instead I will have to instruct the society to close the account and I will have to give the due 90 days notice. At the end of the 90 day period the account would be closed and the funds transferred out of it, inclusive of any interest accrued.

Thanks Steve -
but just to be clear. Are you deducing this, or have you seen it stated in the T & Cs, or had it confirmed direct by Newcastle, pref in writing? Cos I can't see anything about early penalty-free closure. Whereas there IS a clear £5k minimum balance which with most bonds means for the life of the bond...

frames1_uk

Has anyone received any paperwork for this account yet? I only have an email confirmation, but it doesn't give me any info on how to log into my account, username etc, I would have thought I would have some paperwork by now?

Steve_xx

G_M wrote: »

Thanks Steve -
but just to be clear. Are you deducing this, or have you seen it stated in the T & Cs, or had it confirmed direct by Newcastle, pref in writing? Cos I can't see anything about early penalty-free closure. Whereas there IS a clear £5k minimum balance which with most bonds means for the life of the bond...

It says penalty free withdrawals with 90 days notice, and that's all.

Further it says that the minimum deposit has to be 5k and that's all.

It is obvious that if at today you have 6k in the account and you wanted to withdraw 3k that you will not maintain the 5k deposit so you would simply close it. You would give 90 days notice to do so and that would be the end of it.

D1zzy

frames1_uk wrote: »

Has anyone received any paperwork for this account yet? I only have an email confirmation, but it doesn't give me any info on how to log into my account, username etc, I would have thought I would have some paperwork by now?

Applied on Saturday - got letter today requesting me to confirm my DD setup - but nothing else.

G_M

Steve_xx wrote: »

It says penalty free withdrawals with 90 days notice, and that's all.

Further it says that the minimum deposit has to be 5k and that's all.

It is obvious that if at today you have 6k in the account and you wanted to withdraw 3k that you will not maintain the 5k deposit so you would simply close it. You would give 90 days notice to do so and that would be the end of it.

Sorry. That's not how I interpret it. As you point out it says: "Further it says that the minimum deposit has to be 5k and that's all." That to me implies that if I wish to close the account, OR reduce my £6K balance by £3K (efffectively closing it), I can't (or I might be penalised in some undefined way).

Steve_xx

G_M wrote: »

Sorry. That's not how I interpret it. As you point out it says: "Further it says that the minimum deposit has to be 5k and that's all." That to me implies that if I wish to close the account, OR reduce my £6K balance by £3K (efffectively closing it), I can't (or I might be penalised in some undefined way).

There would be no point in you reducing the deposit to less than 5k because if you did you would breach the terms. If you thought you were going to have to do that then you would need to give notice to withraw the lot and close the account. You would not be penalised as you would have to give 90 days notice.

G_M

you would need to give notice to withraw the lot and close the account. You would not be penalised as you would have to give 90 days notice.

You have still not pointed out where it says you can close the account! Only that you you can make withdrawals. You HAVE agreed at least that there is a minimum £5K balance required which I STILL maintain implies no early account-closure.
The T&Cs are unclear and I suspect you are speculating on the Newcastle's interpretation of those unclear T&Cs. Or do you have a definitive answer?