NOW CLOSED - Newcastle Premier Bond - 4.2% AER for 6 months term

afmfifgh

uk1 wrote: »

My reading of the T's&C's is that as this is a fixed 5 year bond with the 180 day notice that this implies that only one deposit will be allowed. In other words it might be risky for someone who has asked to desposit by DD on the fixed dates and then send say £500 in advance. Isn't there a danger that the bond would start from the deposit of the £500 and reject any further deposits on the prearranged DD date? I can't see how you can have two maturity dates in one fixed period bond.

Like with most Bonds you can continue to fund them after you have opened, usually it is whilst they are still available. In this case you have 20 days from the date of opening, today for me.

The maturity date is normally on Bonds from the date of opening or the date of first funding even if you add more funds at a later date, or a set date in the future so I see no issues. I won't be having it for 5 years anyway so I am not fussed about that tbh.

luvpump

I actually applied for this today !!! But stopped when they wanted my savings account number,(i already have a substatial amount with them) so i logged on to it this evening to get my account number & tried to apply.. !! Im'e pixxed off :mad:

vigman

No-one seems to be taking account of the 'fun' that Newcastle put me through when they accepted a deposit for an ISA, then closed the ISA telling me I could then fund it. Then I had the funding rejected and the deposit stuck in an ISA I didn't want with them requesting a penalty for withdrawing it! It ended up with this deposit being added towards my year's allowance.

They say one thing and do another....wait for the mail that says, 'our employee was incorrect when they advised you....etc etc..'

Vigman

uk1

afmfifgh wrote: »

Like with most Bonds you can continue to fund them after you have opened, usually it is whilst they are still available. In this case you have 20 days from the date of opening, today for me.

The maturity date is normally on Bonds from the date of opening or the date of first funding even if you add more funds at a later date, or a set date in the future so I see no issues. I won't be having it for 5 years anyway so I am not fussed about that tbh.

To be frank I'm puzzled by your post because it isn't my experience that " most bonds" can be multi-funded. A bond in my experience normally requires a single deposit. I have a few long-term savings bank bonds and all are single deposits.

I hope you are right for the sake of anyone who has attempted to double deposit and subsequently finds the second is rejected.

SuzieSue

uk1 wrote: »

To be frank I'm puzzled by your post because it isn't my experience that " most bonds" can be multi-funded. A bond in my experience normally requires a single deposit. I have a few long-term savings bank bonds and all are single deposits.

I hope you are right for the sake of anyone who has attempted to double deposit and subsequently finds the second is rejected.

I rang them yesterday to confirm as I will be sending 3 different transfers and they confirmed that it was fine as long as they received them within 20 days. Of course, the person could have been wrong, but I'm hoping he gave me the correct information.

afmfifgh

uk1 wrote: »

To be frank I'm puzzled by your post because it isn't my experience that " most bonds" can be multi-funded. A bond in my experience normally requires a single deposit. I have a few long-term savings bank bonds and all are single deposits.

I hope you are right for the sake of anyone who has attempted to double deposit and subsequently finds the second is rejected.

Perhaps I shouldn't have said most, but rather a lot.

I have had numerous bonds that allow me to continue to fund the account as long as the issue is still available. The logic being that they hold the issue until they raise the funds they had planned and then close the issue. So they are not bothered if that additional funding comes from me adding to me deposit or new people opening them.

No one will be attempting to double deposit off the back of my advice as the issue was closed by the time I posted my advice but I was only passing on what I was told by NBS.

As always anyone looking for exact advice should contact the provider themselves so as to hear it from the horses mouth so to speak. But I feel confident I will be able to add to my initial deposit given the information I was given and have recorded.

If I can't double deposit there isn't much I could have done differently as I didn't have the funds in place to pay it in yesterday.

Hope that clears it up.

Smurf2011

Hello,

I applied for this account yesterday but have not yet sent the deposit and am hoping that they will be accepted within the 20 days.

I dont have much savings so I wanted to make sure this will be worth it.

At the moment I have a Cash ISA that pays 1.90 % interest tax free.

If I put £1,000 or £3,000 in to the Newcastle Bond how much will I lose in tax? I am a young professional earning between less than £30k a year. Is the 4.2% with tax going to be better in the long run?

Many thanks!

slickric1234

1.9% is miserable for a cash isa are u sure thats right
u should be able to swap it to something between 3 and 3.4%

£1000@1.9% tax free £19 in interest after tax
say you had 1k@3% in cash isa tax free £30 interest after tax for year

£1000@4.2% is £42 IN INTEREST BEFORE TAX

looking at http://www.tax-calculators.co.uk/incometaxbands.html
your on 20% tax

so 42*.8 = £33.6 after tax

which is higher

whether its worth shifting depends how much in savings you have
and if you are in a job that is likely to start earning a lot more and hit the higher tax rate in the near future

definitely worth shifting to a 3% isa if your on 1.9%

and possibly to a high interest account paying 20% tax on it if your not goingto be on 40% tax anytime soon

if on 40% tax a 3% isa is better than a 4.2% savings account
and with 6k or so a year isa saving limit taking a marginally worse rate in the short term may be worth it to build up the cash in your isa for when you hit the higher tax rate

uk1

afmfifgh wrote: »

Hope that clears it up.

It's what you should have said originally!

afmfifgh wrote: »

Perhaps I shouldn't have said most, but rather a lot.

I have had numerous bonds that allow me to continue to fund the account as long as the issue is still available. The logic being that they hold the issue until they raise the funds they had planned and then close the issue. So they are not bothered if that additional funding comes from me adding to me deposit or new people opening them.

If I can't double deposit there isn't much I could have done differently as I didn't have the funds in place to pay it in yesterday.

Hope that clears it up.

I'm afraid again you are potentially wrong. What you said before was in essence "theres nothing to worry about" - and now you are agreeing that people should be cautious. Exactly my point. I have £300k+ in cash bonds and all of them only allow a single deposit.

afmfifgh wrote: »

No one will be attempting to double deposit off the back of my advice as the issue was closed by the time I posted my advice but I was only passing on what I was told by NBS.

Not true. We're talking here about some people who have opened an account but have yet to charge it because they completed DD's and are concerned that Newcastle may bump them out because they are "sold out" and who may therefore choose to charge it as though they hadn't completed DDs. It's obvious that the debate is irrelelvant to people who don't have accounts. And I'm personally not concerned about your financial position in charging your account - I'm concerned about your rash advice to others that multi-charging wasn't an issue.

afmfifgh wrote: »

As always anyone looking for exact advice should contact the provider themselves so as to hear it from the horses mouth so to speak.

Stating that they can call Newcastle is obvious but doesn't negate the rather comparatively careless advice you gave in the post and which as I'm sure you know others may follow to their potential regret. My point is that neither of us yet know - but caution is better than careless presumption.

Smurf2011

slickric1234 wrote: »

1.9% is miserable for a cash isa are u sure thats right
u should be able to swap it to something between 3 and 3.4%

£1000@1.9% tax free £19 in interest after tax
say you had 1k@3% in cash isa tax free £30 interest after tax for year

£1000@4.2% is £42 IN INTEREST BEFORE TAX

looking at http://www.tax-calculators.co.uk/incometaxbands.html
your on 20% tax

so 42*.8 = £33.6 after tax

which is higher

whether its worth shifting depends how much in savings you have
and if you are in a job that is likely to start earning a lot more and hit the higher tax rate in the near future

definitely worth shifting to a 3% isa if your on 1.9%

and possibly to a high interest account paying 20% tax on it if your not goingto be on 40% tax anytime soon

if on 40% tax a 3% isa is better than a 4.2% savings account
and with 6k or so a year isa saving limit taking a marginally worse rate in the short term may be worth it to build up the cash in your isa for when you hit the higher tax rate

Thank you so much for your detailed response :j.
I didnt actually realise until recently how low the interest had gone on my ISA it is a local Building Society and yes i have had an account with them since birth so yes I am loyal - but learning!!! Thats why I quickly signed up yesterday after reading Martin's message! The problem is I am in the middle of trying to purchase a flat so there will not be much left of my current savings, I am looking at stoozing - to buy all needed purchases on a 0% card and hang on to as much (or rather little) savings I have left for as long as possible to see if I can make any interest on them, that is why I am nervous about moving it out of the ISA even if its only 1,000 but I am not likley to move up to the next tax bracket anytime soon, so the 4.2% interest does seem to be the best soloution - so long as they accept my deposit!