Why is Newcastle BS not listed on most Comparison Sites for ISA?

sharpharp

I'm looking for the best ISA which allows transfers, from checking Newcastle BS seems to be the best (3.00 AER, although you only get 2.00% and then a 1.00% Bonus after a year), but they don't appear on many of the comparison websites, why is that?

The other top ones are either santander or alliance and leicester at 2.75 AER all the way through the year.

Which is the best? Would i lose about interest wise if going for the Newcastle one at 2% with the 1% bonus after 12 months?

Thanks

steveksullivan

I think you will find that this is a two year fixed rate - not a 1 year.......

digivate

steveksullivan wrote: »

I think you will find that this is a two year fixed rate - not a 1 year.......

Wrong! It's a 1 year account. Not 2 years.

sharpharp wrote: »

I'm looking for the best ISA which allows transfers, from checking Newcastle BS seems to be the best (3.00 AER, although you only get 2.00% and then a 1.00% Bonus after a year), but they don't appear on many of the comparison websites, why is that?

The other top ones are either santander or alliance and leicester at 2.75 AER all the way through the year.

Which is the best? Would i lose about interest wise if going for the Newcastle one at 2% with the 1% bonus after 12 months?

Thanks

It's a tough one to work out, especially without knowing what rate you'll be able to transfer into next year.

I've just done some quick working out using these 2 options:

1) £1000 into Newcastle Building Society for 12 months at 3%, then 4 months at 2% (notice period) and then transferred to a new account at 3% for the remaining 8 months of the year.

Approx = £1057.60

2) £1000 into A&L for 12 months at 2.75%, then transferred to a new a account at 3% for the next 12 months.

Approx = £1058.36

I've had plucked 3% out of the air as a possible figure for next year's top rate that allows transfers. Not a great deal of difference between the two options really though I guess the more you're transferring the greater the difference.

That said, I'd never let Santander (or their sister company A&L) anywhere near my money ever again. They never seem to be able to cope with demand, and last year I found their staff rude and unhelpful ... so I've decided to go with Newcastle Building Society.

sharpharp

The Newcastle BS one is 12 months, so whats this "4 months at 2% (notice period)" about?

You don't have to give any notice to transfer out after 12 months with Newcastle BS do you?

digivate

sharpharp wrote: »

The Newcastle BS one is 12 months, so whats this "4 months at 2% (notice period)" about?

You don't have to give any notice to transfer out after 12 months with Newcastle BS do you?

Yes, I think you do. A bonus is paid after 12 months, but there's nothing that says that the 120 days transfer notice period ceases after the first 12 months.

If you go to transfer it to a better ISA rate in a years time you'll either have to wait 120 days for it to transfer so it sits in the Newcastle BS ISA for another 120 days, or 4 months, making 2% or you forfeit 120 days of interest. I'd rather it made interest for 120 days at 2% rather than lose 120 days days worth of interest at 3%.

sharpharp

I see what you mean about the 120 days notice now, I will check that out with the branch. If thats the case, i'll go with one of the Satander ones, as i'd rather shift to a better account after 12 months.

Thanks for your prompt advice, much appreciated.

digivate

No worries. I coud be wrong about the 120 days notice period lasting more than 12 months. To be honest though, it doesn't bother me as the extra interest made in the first 12 months balances out the slight loss of interest for the first 4 months of next year.

I've vowed to never bank with Santander ever again. They made a complete mess of setting up my ISA last year and their customer service was really awful (and pretty rude with it).

I've already applied for the Newcastle Reward ISA myself and I received confirmation that the ISA was opened within a few days. I'm just waiting for my old NatWest ISA to transfer into it and, as long as that goes smoothly, I'd say Newcastle Building Society was far easier to deal with.

scottishblondie

Maybe check out Clydesdale/Yorkshire BS - they have a 1year fix at 3%. The conditions do include a penalty for early withdrawl or transfer but the notice period is 5 days until maturity, 0 days after (as far as I can make out).

triplea35

If you have a money to transfer and are still saving, even a £100 a month will do, then consider the Balance Builder ISA with Newcastle which is currently paying 3.4%. It is a variable rate account with instant access so I think it is seriously overlooked.

frivolous_fay

triplea35 wrote: »

If you have a money to transfer and are still saving, even a £100 a month will do, then consider the Balance Builder ISA with Newcastle which is currently paying 3.4%. It is a variable rate account with instant access so I think it is seriously overlooked.

I agree - and you can also transfer in.

NorwichMan

Am I the only one confused by the description of the Balance Builder ISA on Newcastle BS's website? The headline rate is "up to 3.4% gross / 2.00% AER". OK, so I think that means it pays less interest than, say, the 1st Direct ISA at 2.75% AER.

But in the table further down the page, it states the rate without bonus is 2% AER and with bonus is 3.4% gross, and interest is paid gross. Bonus is only paid if you make nine further regular monthly payments between 100 and 500 pounds. And interest is paid annually on the anniversary of account opening....

So what is the AER with bonus? Is it 3.4%?? Is this in fact a better deal than 1st Direct (assuming the same frequency and value of contributions to get the NBS bonus)?