1 year or 2 year fixed bond?

kostigovs

I spoke to the Newcastle B.S. by phone and they confirmed that there is no penalty for early exit provided the required notice has been given.

I highlighted this in the letter that went with my deposit.

DiggerUK

mandy-j0 wrote: »

DiggerUK

What do you think about the Newcastle BS 5 year bond that I can leave with 3 months notice, without incuring penalties, as posted by musehead

When I first read the T&C's I remember it as saying you also lost the 90 days interest when you gave notice, but not now.

Get them to send you a hard copy for study. It seems to good to be true. But it could be as it says on the tin.

They also have two bonds on offer, one ISA and one savings A/C. Same rate.

I'm sure I saw a thread on this but can't find it now.

zzzLazyDaisy

Great, thanks, looks like the Newcastle for me then!

It says on the site that the initial deposit can be topped up with further funds at anytime, as long as the offer is still open. However I can't see an account as good as this hanging around for too long!

Andystriker

Hi All,

If you go to the Press Archive for June 29th on their website you get:-


Date of Issue: 29th June 2009
MORE BEST BUY SAVINGS AT 5.00% FROM NEWCASTLE BUILDING SOCIETY
[FONT=Trebuchet MS,Trebuchet MS][FONT=Trebuchet MS,Trebuchet MS]• [/FONT][/FONT]New 5.00% Five Year Fixed Rate Bond
[FONT=Trebuchet MS,Trebuchet MS][FONT=Trebuchet MS,Trebuchet MS]• [/FONT][/FONT]Extended availability of 5.00% Five Year ISA
[FONT=Trebuchet MS,Trebuchet MS][FONT=Trebuchet MS,Trebuchet MS]Newcastle Building Society is continuing to top the best buy* tables with the launch of a new fixed rate bond offering up to 5.00% Gross/AER over five years, available from 1 July 2009. *Source: Moneyfacts.co.uk. [/FONT]
[FONT=Trebuchet MS,Trebuchet MS]It is also extending availability of its popular Five Year ISA (Issue 1) with a fixed rate of 5.00% Gross/AER, which remains a limited issue. [/FONT]
[FONT=Trebuchet MS,Trebuchet MS]The Society’s Five Year Fixed Rate Bond (Issue 1) is available to savers who wish to invest from £5,000 and receive 5.00% Gross/AER annually, or at a rate of 4.85% AER with the monthly income option. [/FONT]
[FONT=Trebuchet MS,Trebuchet MS]Both the bond and the ISA allow unlimited withdrawals (or transfers out) of funds at 90 days’ notice and without penalty. [/FONT]
[FONT=Trebuchet MS,Trebuchet MS]The bond account can be opened online, by post or over the telephone by calling 0845 600 4331. The ISA is can be opened exclusively via www.newcastle.co.uk. [/FONT]
[FONT=Trebuchet MS,Trebuchet MS]Steve Urwin, Senior Marketing Executive at Newcastle Building Society said: "We’re really pleased to be offering even more savers the chance to benefit from this best buy rate. As expected, the ISA product has been extremely popular, so we’re extending its availability to meet demand. [/FONT]
[FONT=Trebuchet MS,Trebuchet MS]"Both accounts provide the flexibility of access with a notice period, should customer circumstances change, but we will continue to credit interest until the money actually leaves the account. [/FONT]
[FONT=Trebuchet MS,Trebuchet MS]"As best buy products, we’re expecting both to be very popular and we’ve worked hard to ensure account opening and ISA transfers run as smoothly as possible." [/FONT]
[FONT=Trebuchet MS,Trebuchet MS]For more information customers should visit www.newcastle.co.uk or call 0845 600 4331. [/FONT]
[/FONT]Five Year Fixed Rate Bond (Issue 1)
• [FONT=Trebuchet MS,Trebuchet MS][FONT=Trebuchet MS,Trebuchet MS]Five Year Fixed Rate Bond [/FONT]
[FONT=Trebuchet MS,Trebuchet MS]• Fixed Rate of 5.00% Gross/AER annually [/FONT]
[FONT=Trebuchet MS,Trebuchet MS]• 4.85% AER /4.75% Gross monthly [/FONT]
[FONT=Trebuchet MS,Trebuchet MS]• Access with 90 Days Notice with no loss of interest [/FONT]
[FONT=Trebuchet MS,Trebuchet MS]• Minimum/Maximum investment £5,000 - £500,000 [/FONT]
[FONT=Trebuchet MS,Trebuchet MS]• Maturity date of 31 July 2014 [/FONT]
[/FONT][FONT=Trebuchet MS,Trebuchet MS]• Opened via www.newcastle.co.uk, post or telephone [/FONT]
Five Year Fixed Rate ISA (Issue 1)
• [FONT=Trebuchet MS,Trebuchet MS][FONT=Trebuchet MS,Trebuchet MS]Five Year Fixed Rate ISA [/FONT]
[FONT=Trebuchet MS,Trebuchet MS]• Fixed Rate of 5.00% Gross/AER [/FONT]
[FONT=Trebuchet MS,Trebuchet MS]• Access with 90 Days Notice [/FONT]
[FONT=Trebuchet MS,Trebuchet MS]• ISA Transfers Allowed [/FONT]
[FONT=Trebuchet MS,Trebuchet MS]• Minimum/Maximum investment £1 - £50,000 (Includes current ISA limits plus any transfers from previous ISA providers) [/FONT]
[/FONT][FONT=Trebuchet MS,Trebuchet MS]• [/FONT][FONT=Trebuchet MS,Trebuchet MS][FONT=Trebuchet MS,Trebuchet MS]Maturity date of 31[/FONT][/FONT][FONT=Trebuchet MS,Trebuchet MS][FONT=Trebuchet MS,Trebuchet MS]st [/FONT][/FONT][FONT=Trebuchet MS,Trebuchet MS][FONT=Trebuchet MS,Trebuchet MS]July 2014 [/FONT]
[/FONT][FONT=Trebuchet MS,Trebuchet MS]• Opened via www.newcastle.co.uk [/FONT]
ENDS


So this is proof of withdrawals at 90 days notice without penalty.

Is this Society good to deal with and are they safe?

Andy

D1zzy

Just done my Newcastle bond . Have been sticking with 1 year bonds, but since you can withdraw all or any at 3 months notice, seems a good bet. Sticking below £50K including interest though,

Andystriker

D1zzy,

Just going to apply myself now.

Was it any easy on-line form and how are you giving them your funds, by Bank Tfr or Chq?

Andy

D1zzy

Andystriker wrote: »

D1zzy,

Just going to apply myself now.

Was it any easy on-line form and how are you giving them your funds, by Bank Tfr or Chq?

Andy

Form was Ok - needed yr passport number and expiry date, otherwise usual stuff. You can set-up a linked account (DD) for transferring money in. Having set it up today - they advise the money will be transferred 15/07/09. You can then add to it from the linked account if needed.

Andystriker

Did they give the option of sending them a cheque?

D1zzy

Andystriker wrote: »

Did they give the option of sending them a cheque?

Sorry Yes - you can send a cheque and/or set up a linked account, on-line, as part of the application or later using a postal form.

DiggerUK

Mandyjo,
It does seem that this is a good deal. At these rates 90 days isn't over the top.

Andysrtiker's post of their press release would mean that NBS would be in some serious hole if they are trying a fast one.
We have had A/C's with NBS and never had problems.

You could stick everything in this A/C and withdraw to stay under the 50K max as and when.

On a wider point why is this rate so far ahead of the pack? anybody heard anything we should know about NBS.

Is this the start of a trend in savings rates going up? Needs to be watched.