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NOW CLOSED - Newcastle Premier Bond - 4.2% AER for 6 months term
Comments
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You can give notice to transfer the money out online the earliest date being 6 months from today. Presumably, they will closer to the time, ask you to confirm the transaction, as previously mentioned. Therefore why wouldnt everyone give their notice now are there any pitfalls to this?
No one knows what will be in the market in 6 months time. You couldn't put the money back after you took it out.0 -
johnmoney05 wrote: »No one knows what will be in the market in 6 months time. You couldn't put the money back after you took it out.
Whilst I know what you are saying the fact that you later have to confirm the withdrawal to me suggests you can not go ahead with it. That is the point I was making0 -
I chose monthly interest when applying and having just checked my account it says my interest rate is 3.95% (gross pa). I just rang them to ask about it and the lady said that if the interest is paid back into the same account then it equates to the same amount (4.2%). I am a bit suspicious as 4.02% is mentioned above. However she says you can change from monthly to annual interest (an presumably back) at any time online.
Could somebody who has applied for yearly interest confirm that online it says the interest rate is 4.2% please (by pressing the magnifying glass under Account Details in the Account Summary).
3.95% gross paid monthly and 4.02% AER equate to the same thing. This is because each monthly interest payment itself earns interest (say to the end of the year). Mathematically (1+0.0395/12)^12-1 = 4.02%. I think that is what the Newcastle person was probably trying to say to you.
So except in extreme circumstances almost certainly a good idea to switch to annually which is 4.2% AER (Ifts has pretty much confirmed you are getting 4.02% AER currently and not 4.2% AER).
On another version of this Newcastle account that I have, when you click the magnifying glass it then it brings up details including your interest frequency which you can change. If that is the case here that is your easy way to change it.I came, I saw, I melted0 -
Quote from plodder73: Whilst I know what you are saying the fact that you later have to confirm the withdrawal to me suggests you can not go ahead with it. That is the point I was making
That is my reading too - but if you do not go ahead with the withdrawal, you are back to square 1 fairly enough and have to give another 180 days notice to access the funds.
PS how do you quote earlier posts properly?Martin0 -
Quote from plodder73: Whilst I know what you are saying the fact that you later have to confirm the withdrawal to me suggests you can not go ahead with it. That is the point I was making
That is my reading too - but if you do not go ahead with the withdrawal, you are back to square 1 fairly enough and have to give another 180 days notice to access the funds.
PS how do you quote earlier posts properly?
Like this! There should be a quote box in the post you want to quote.0 -
PS how do you quote earlier posts properly?
Just press the
button (next to the Thanks button once signed in) at the bottom of the post you want to quote.
Also if you want to answer more than one person in one message, click the
(multi quote button) on each post you want to reply to and then when you've got all the ones you want to reply to, click post reply and they should all magically appear!
Hope that makes sense!
Never let the perfume of the premium overpower the odour of the risk0 -
Not sure thy anyone would choose monthly income and have it paid back into the savings account what would be the point of that, can only see monthly interest being of benefit if you have it paid to a bank account.
Well at the time I thought there was no difference in interest rate whether choosing monthly or annual interest.... so I chose one of them as I was applying in my lunchtime and didn't have time to investgate. I chose monthly as I like to see the interest coming in more than once a year. It could make a difference to tax returns as to which tax year your interest needs to be declared.
Anyway - I've applied to change the interest to yearly and will be CHAPSing in a significant amount tomorrow morning realising I am taking a gamble on Newcastle BS staying solvent. Thanks all.0 -
> realising I am taking a gamble on Newcastle BS staying solvent
Why are you saying that, have you put more than 85K in?0 -
> realising I am taking a gamble on Newcastle BS staying solvent
Why are you saying that, have you put more than 85K in?
I am planning on doing so. I am not confident enough in the stock markets at the moment though I realise this is probably a better way to invest. Why? Do you think Newcastle are a building society under threat?
[I can't see the UK government letting a North East building society go under having had another one supported by the then government]0 -
> Do you think Newcastle are a building society under threat?
No, I have no way to know if that is the case or not, I have placed a large amount with them, but not over 85K0
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