Great new Newcastle Bond

ashteadgirl

Newcastle have launched a great new bond for larger deposits called

Five year Fixed Rate Issue 2

Rates upto £24999 3.5%AER
£25000-£49999 4% AER
£50000-£99999 4.25%AER
Over £100000 4.5%
The beauty of this bond is that although the rates are fixed for 5 years you can access your money with only 120 Days Notice and NO PENALTY. So in other words for larger ammounts it is a good rate for what in esscence is a 120 days notice account.

Here is the link

http://www.newcastle.co.uk/savings/Five-Year-Bond-2

alanq

Although there are administrative savings to be made by having fewer but larger deposits I think is sad when a mutual building society weights the interest rates so much in favour of the larger depositor. (I remember a time when the Skipton offered slightly lower rates for larger deposits in limited issue fixed rate bonds.)

I am not tempted by the rates for the sort of amounts I would be depositing.

Beware if you are taking monthly interest. The AER for monthly is significantly less than for annual interest shown above. One expects the gross figure to be lower but not the AER by any significant amount.

Reaper

Newcastle have done a few of these deals in the past offering fixed interest plus an escape route that makes them very apealing in case interest rates rise sharply. While the interest rate is not quite as good as in the past and the notice period has gone up from their more normal 90 days it remains a very good offer.

Those interested should not hang around as these deals don't usually stay open long and close without warning. Usually just after Martin puts it in his weekly email!

evenasus

I've already received the annual interest (5%:D) on the 5 year bond I took out with them last year.
Newcastle BS were one of the most efficient & helpful institutions I've come across.

Now if only the guaranteed limit would double.

C_Mababejive

Do we think this is the current best deal around..? Would the cumulative effect of compound interest make the monthly interest option effectively the same as the annual option?

Reaper

C_Mababejive wrote: »

Would the cumulative effect of compound interest make the monthly interest option effectively the same as the annual option?

No, you are worse off with monthly in this case. See the AER figures.

C_Mababejive

Do readers think this is anything to worry about...?

http://www.newcastle.co.uk/content/docs/HalfYear2010.pdf

Half year results...NBS reports a £900,000 loss before one off repositioning costs.

EDIT

has anyone signed up for this yet..?

jacegirl

This looks like a good deal to me and by restricting the max deposit to £50k it should be safe just in case there is any serious financial problems with N B.S.

Loco

should you need to withdraw, can you do so in partial amounts? or does it have to be the full amount? thanks

Old_Slaphead

Loco wrote: »

should you need to withdraw, can you do so in partial amounts? or does it have to be the full amount? thanks

Partial amounts

alanq

The wording in the Ts&Cs is that "withdrawals" can be made by giving 120 days notice. I would expect it to say "closure" if partial withdrawals were not allowed. If in doubt give NBS a call.