Great new Newcastle Bond

luvpump

I am thinking about this, but as ime up to the 50k maximum , i cant imagine a building society folding now ? I have heard the fsc scheme is going up ??

Sceptic001

luvpump wrote: »

I am thinking about this, but as ime up to the 50k maximum , i cant imagine a building society folding now ? I have heard the fsc scheme is going up ??

Unlikely, but why take unnecessary risks? There is a similar product (albeit not quite so flexible on early withdrawal) from State Bank of India - see https://forums.moneysavingexpert.com/discussion/2676937

juicyjude

Going up to 100.000 euros from (if I am correct) 31st December. Think the UK still have to rubber stamp it, but it is an EU directive. Hope this helps, must admit I have gone over on the Nationwide/Cheshire Building Soc as the rates on the bond I have taken out are better. Bit of a risk but hey, you have to do these things sometimes in order to get the best deals.(Keeping fingers and toes crossed)

GlasWolf

Looks like this has been withdrawn as of Friday and replaced by issue 3, which loses about 0.5% from each tier.

alanq

The annual interest rates for each tier for Issue 3 with Issue 2 rates in ()
-£25000 3.00% (3.50%)
£25000-£49999 3.35% (4.00%)
£50000-£99999 3.70% (4.25%)
£100000- 4.00% (4.50%)

AER for monthly interest is still lower.

http://www.newcastle.co.uk/savings/Five-Year-Bond-3

I wasn't very impressed before. Even less so now.

malc1603

Just read about the FSCS proposed protection increase to around £85000 and thought this bond looks more attractive again. ie you could get 3.7% interest on £80000 (covered by the FSCS after December 31) with 120 days notice (so long as Newcastle don't go bust before the FSCS bring in the change!).