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

Steve_xx

G_M wrote: »

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?

The terms are shown with the product.

There is no reference to a limit on the amount you can withdraw. Therefore there is no limit.

The minimum funding on the account is 5k. Without that minimum funding you cannot have the account.

You are trying to read something into the terms and conditions that are not there.

You obviously do not believe that this account is as simple as it is. I suggest to you that you contact Newcastle and ask them to write to you with verification of the points you have raised here.

intalex

Isn't it possible that the account would not allow withdrawals (with notice) that would take the balance below the required minimum of £5k?

In other words, it could operate in a tiered system, whereby the first £5k simply cannot be withdrawn with/without penalty, and any amount above that can be withdrawn without penalty on 90 days' notice.

I think that's quite an important question to answer before committing to the bond.

Steve_xx

intalex wrote: »

Isn't it possible that the account would not allow withdrawals (with notice) that would take the balance below the required minimum of £5k?

In other words, it could operate in a tiered system, whereby the first £5k simply cannot be withdrawn with/without penalty, and any amount above that can be withdrawn without penalty on 90 days' notice.

I think that's quite an important question to answer before committing to the bond.

It doesn't say anything like that. If you are unsure then I would suggest that you contact them and seek clarification.

D1zzy

G_M wrote: »

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?

Well it doesn't say you can't close it.
It doesn't mention any penalties for having less than 5K or for early closure
Only that the minimum to have an account is 5K
Ergo - if you withdraw all yr cash -they will close your account (or maybe indeed you will not be allowed to take your balance below the minimum)
Only way to be sure is to ask them.
Worst case -5K at 5% for 5 years - probably not that bad an option even if rates get upto the dizzy heights of 7% again at some stage

G_M

Ergo - if you withdraw all yr cash -they will close your account (or maybe indeed you will not be allowed to take your balance below the minimum)

That is exactly the point I am trying to pin down. I have indeed emailed Newcastle. I will post any reply I receive in due course.
Hopefully Steve will be proved right & I will happily eat humble pie!

MarkyMarkD

Why on earth are you reading things into the terms of this account which are not there?

Steve_xx is describing it exactly as it works.

It is a 90 day notice account, with a guaranteed interest rate, and a minimum opening and operating balance of £5,000. That's the beginning and end of it.

It is NOT a bond, in any normal sense of the word, despite being described as such.

anselld

The suspicion arises because it is marketed as a five year fixed bond, not a 90 day notice account. And there is the saying that "If it looks too good to be true, it probably is!"

That being said, the worst that can happen is kiss goodbye to £5000 for 5 years at 5%.

Andystriker

G_M wrote: »

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?

In the press release dated 29/6/09 it says:

"Access with 90 Days Notice with no loss of Interest".

Now to me that means I can have my money back on 90 days notice. Now hypothetically suppose I was to invest only £5,000. The above statement says that I can have access on 90 days notice.

Surely they would have to say Access only on funds above £5,000 with 90 days notice.

I honestly do think you are worrying about nothing.

Andy

Steve_xx

anselld wrote: »

The suspicion arises because it is marketed as a five year fixed bond, not a 90 day notice account. And there is the saying that "If it looks too good to be true, it probably is!"

That being said, the worst that can happen is kiss goodbye to £5000 for 5 years at 5%.

But there is nothing in their product terms that says that the minimum deposit must be held for five years. All it says is that you can withdraw funds by giving 90 days notice. You are reading into their terms something that simply is not there.

intalex

I think the best thing would be to ask them, rather than speculate and debate. It's not about individual perceptions (optimistic - "if it doesn't say it, it won't happen" or pessimistic - "if it's not mentioned, it could happen"); rather it is about seeking clear facts from the horse's mouth, and making an informed decision thereafter, which would leave all subscribers with peace of mind!