MSE News. Save at 5% with access to your cash (Newcastle BS 5% Bond) NOW CLOSED

D1zzy

spal123 wrote: »

A quick "Thank-you" to MSE staff for featuring this offer.
I personally would have missed it if it wasn't in the email and the details that were initially wrong were really just that - details.
I got in for 5% and am very grateful.

Well just a bit slow to "feature" :rolleyes: with 1 day to go - when there have been postings on here for at least 2 weeks

Still they did tell us when it would be pulled so brownie points for that

db7

I opened the account about 10 days ago and chose to open it with £100 by direct debit. When I heard it was close to closing to new money I borrowed back £3500 from my mortgage and paid by BACS today. I then got an email from Newcastle to say it was closed to new money and that I was too late. I knew it was too good to be true. Now I've got £3500 in my account - I suppose I'll have to wait for the next good fixed rate account to come along and then jump in straight away.

db

KingL

Since this product is no longer available, is it appropriate to still have it up on the news site as a news story? Could somebody at least change the tense and certain sections that might cause the casual reader to conclude that it was still available ? e.g.

But those who are keen must hurry as the account in question, the Newcastle Building Society five-year bond, will be pulled on Wednesday

zzzLazyDaisy

db7 wrote: »

I opened the account about 10 days ago and chose to open it with £100 by direct debit. When I heard it was close to closing to new money I borrowed back £3500 from my mortgage and paid by BACS today. I then got an email from Newcastle to say it was closed to new money and that I was too late. I knew it was too good to be true. Now I've got £3500 in my account - I suppose I'll have to wait for the next good fixed rate account to come along and then jump in straight away.
db

The minimum deposit on this bond is £5000. So you have not yet made your initial funding payment. You still have time to get a cheque to them provided it arrives by friday - but you are going to need to find some more money to meet the minimum balance for the bond.

(unless I have misunderstood you, in which case I apologise... I have a flu-ey brain today)

twopenny

Can anyone tell me why the 5% ISA from Newcastle disappeared so quickly - I had only just read about it and now it's gone!
Seemed a perfect soloution - disappointing and the Bond seems to have come and gone like greased lightening. Doesn't make the banks seem any more stable as NatWest was bringing in deals and finishing them in a couple of weeks last year.

Speculator

twopenny wrote: »

Can anyone tell me why the 5% ISA from Newcastle disappeared so quickly - I had only just read about it and now it's gone!
Seemed a perfect soloution - disappointing and the Bond seems to have come and gone like greased lightening. Doesn't make the banks seem any more stable as NatWest was bringing in deals and finishing them in a couple of weeks last year.

The Five Year 5% Bond was launched on the 1st of July and withdrawn on the 15th of July.
The 5% Five Year ISA Bond version was launched on the 24th of June and withdrawn on the 15th of July.

So you had two weeks to apply for the Fixed rate Bond and three weeks to apply for the Fixed rate ISA.

db7

zzzLazyDaisy wrote: »

The minimum deposit on this bond is £5000. So you have not yet made your initial funding payment. You still have time to get a cheque to them provided it arrives by friday - but you are going to need to find some more money to meet the minimum balance for the bond.

(unless I have misunderstood you, in which case I apologise... I have a flu-ey brain today)

It was the ISA I opened (min £1), rather than the bond.

MarkyMarkD

twopenny wrote: »

Can anyone tell me why the 5% ISA from Newcastle disappeared so quickly - I had only just read about it and now it's gone!
Seemed a perfect soloution - disappointing and the Bond seems to have come and gone like greased lightening. Doesn't make the banks seem any more stable as NatWest was bringing in deals and finishing them in a couple of weeks last year.

Hi twopenny and welcome to MSE.

Introducing, and then withdrawing, fixed rate products is not a sign of instability. Most banks and building societies will set a target for the amount of money they want to raise at fixed rates, and once they've achieved the target they will withdraw the product.

In Newcastle's case, they are having problems getting wholesale funding because they have recently been downgraded twice. So they have to obtain retail funding to replace wholesale funding when it expires.

The same explains why West Bromwich has kept issuing high rate products with strange fixed rate terms. They are covering particular funding needs.

twopenny

Thank you for replying.
I did realise when I had calmed down! Just the frustration as I depend on interest from a lifetime savings and seeing the bankers doing so well while everything I have worked so hard for leaving me struggling still....I'll keep working on it with the help of MoneySaving Expert - fingers crossed.