Am I missing something or is the Northern Rock 5 year stepped ISA a good deal or what

gazgeezer

Just looked around for an ISA & seen that the Northern rock 5 year stepped fixed rate ISA issue 11 is one of the best out there & allows transfer in's
Interest starts @ 3.5% & then steps up 0.5% every year for the next 5 years ending on 5.5%

opinions4u

gazgeezer wrote: »

Just looked around for an ISA & seen that the Northern rock 5 year stepped fixed rate ISA issue 11 is one of the best out there & allows transfer in's
Interest starts @ 3.5% & then steps up 0.5% every year for the next 5 years ending on 5.5%

I would suggest the following 5 year deals are better:

AA 4.55%
Saga 4.50%
Aldermore 4.70%
ICICI 5.00%

Halifax Stepped Income Reserve also matches the Northern Rock deal.

EDIT: But as I seem to have missed the word "ISA" which is mentioned several times by the OP, perhaps what I've posted above isn't as helpful as I though .

sabretoothtigger

I dont think 5.5% will be a good rate in May 2015 but it depends for how longer its much then you could get now

gazgeezer

Options4u, thanks for the advice but are these actually ISA's or have a tax free option or are these bonds etc that I would have to pay tax on @ the end of the term ??

gazgeezer

Sabretoothtigger, I wish I had crystal ball that allowed me to see when rates would be good again, but if I remember ISA's rates never really rewarded more than 6.5% anyway & the banks will be lazy to pass on the great interest rates to savers when the rates do start to climb

alanq

The NR 5-Year Stepped ISA Bond seems like a good deal to me. If held for the full term - as far as I can see - it will return more than any of the 5-year fixed rate bonds now available. Also funds are available to withdraw with just 180 days loss of interest. Some of the fixed rate ISA bonds have 360 days loss of interest if they permit access at all.

Note that the comparable NR Stepped Bond (which pays the same rates but is not an ISA) does not allow any access before maturity.

gazgeezer

Bottomline is I invested the 5.1k today+transfer from other isa today & was looking if i could gleen a bit more info if it was the right thing (14 day cool off offered)...most websites state the A&L as being the best & it ain't also this is not the most publicised product/rate when searching via MSE, google, etc.. it just goes to show not all comparison websites tell you the true facts !!
Martin (MSE) could you include this one on your best picklist as people could be missing this !!

del1001

Seems a fair risk-free tax-free investment to me.

It gives an average 4.5% over the five years, on an £5100 investment with income reinvested it works out at a total return of £6354.80

May well go for this, it's the best I've seen in recent times