NOW CLOSED Newcastle 3 year bond, 4% with 90 days notice to withdraw

avalanche_3

BOND NOW CLOSED

This seems a good product missed by most.

4% fixed interest for 3 years, one of the best rates but you aren't locked in for 3 years!

If rates rise which is very likely in the 3 year period you can give 90 days notice with no penalty and move your money to a better rate.:T

opinions4u

While I like the 90 day get out option, there are still numerous other accounts paying 4%+ for 2 years and 4.5%+ for 3 years.

avalanche_3

If interest rates rise sharply in 6 to 12 months time you could be stuck with a poor rate for the 2 years.

With this account you may be getting slightly less interest than a few 2 year bonds but you can exit within 90 days and lose no interest!

D1zzy

.....and in 90 days whatever good rate you were chasing will be long gone anyway!

avalanche_3

Not if the rates are on a general rise and that is the only way their going to go from 0.5% base rate!

avalanche_3

If you may need the money at 90 days notice this must be the best account around!

Plus it gives you more options than putting money in a 2 or 3 year bond with no exit allowed.

luvpump

Well spotted avalanche, this is v similar to the 5yr bond in got most of my savings in from last year, in effect its a 90 day bond paying a top rate, mind you i have just over 50k in that, so further investment with them would take me well over the FSCS limit , but the chance of a U.K based building Society going bust is pretty much Zero ..

avalanche_3

Thanks Luvpump

I have the 5% bond from last July and my wife has the 5% Isa from last year and from both accounts you can withdraw with 90 days notice.

These two accounts at 5% now look even better than when we took them out last year.

You never know when you might want the money at 90 days notice.

opinions4u

luvpump wrote: »

but the chance of a U.K based building Society going bust is pretty much Zero ..

There's only so much !!!! the Nationwide can take on its balance sheet in a short period of time!

Gordon_the_Moron

I would tend to agree with avalanche, the best you can get on a 2 year fixed rate is 4.25%

This is ICICI which does not allow early closures or withdrawals, the next best at 4.2% has the same terms attached to it. Is the extra 0.25% on your money worth having your money locked away so as you can't get your hands on it?

gozomark

avalanche wrote: »

Not if the rates are on a general rise and that is the only way their going to go from 0.5% base rate!

Base rate rising to 2% could well mean no change in fixed rates