Newcastle Building Society ISA, IS IT 3% MONTHLY bonus?!?!?

vpdanas

Hi folks,

Can somebody that may have investigated clarify...is the Newcastle Building Society big home saver ISA 3% MONTHLY bonus or not.

It clearly says on their website under 'interest rates' that Interest =
Monthly (Variable, Including Bonus) 2.98% Gross/3.00% AER* Monthly (Variable, Excluding Bonus) 1.98% Gross/2.00% AER* the 2.98% qualifying if you keep in line with the bonus conditions which includes 'The bonus on your Account will be paid as long as you make at least one Deposit and make no withdrawals in each Bonus Qualifying Period' ... Which I have. Yet today after my first qualifying period I have been paid at 1.98% and she has explained that its only 1.98% with a 1% bonus at the end of the year, I presume on the total I save throughout the year? So is this correct, have I imagined that what I have highlighted above says 'monthly bonus including bonus 2.98%?!

Has anyone else come across, challenged, etc etc this situation?! If so any advice on whether I can approach them and challenge?

She said to me that 'I, like so many, have clearly misinterpreted the ISA and the bonus'?!?! Am I wrong in interpreting that so long as I keep the conditions I should be getting 2.98% per month?

Thanks so much for any advice or feedback on others' personal experience with this issue.

geoffken

Do you REALLY think you would get 36% per year or even more when compounded !!!!

planteria

3% Annual Rate paid Monthly:question:

geoffken

just worked it out.
On compounding you would get £142 for £100 invested in a year.

DREAM ON !!!!

vpdanas

No that's not what I'm asking... I know that and it's not about compound interest....it's about qualifying for the bonus and not having the bonus. It clearly states MONTHLY interest 2.98% if you qualify for the bonus. I have, yet have only received 1.98%. They are justifying this by saying I will get 1.98% and a 1% bonus at the end of the year. But they clearly state the 1% and qualifying bonus makes the MONTHLY bonus 2.98% if you qualify and 1.98% if you don't. So my query is why am I not getting 2.98% on my savings PER MONTH! That clearer?

vpdanas

http://www.newcastle.co.uk/savings/cash-isa.aspx

It states 17. On special terms If you do not make an investment or make a withdrawal during a Bonus Qualifying Period, your account will be credited with the non-bonus interest rate, currently 1.98% Gross* / 2.00% AER** (variable), in that month.

So surely the word 'if' demonstrates that if you do, you get the bonus rate per month?!

vpdanas

geoffken wrote: »

just worked it out.
On compounding you would get £142 for £100 invested in a year.

DREAM ON !!!!

No that's not what I'm asking... I know that and it's not about compound interest....it's about qualifying for the bonus and not having the bonus. It clearly states MONTHLY interest 2.98% if you qualify for the bonus. I have, yet have only received 1.98%. They are justifying this by saying I will get 1.98% and a 1% bonus at the end of the year. But they clearly state the 1% and qualifying bonus makes the MONTHLY bonus 2.98% if you qualify and 1.98% if you don't. So my query is why am I not getting 2.98% on my savings PER MONTH! That clearer?

vpdanas

planteria wrote: »

3% Annual Rate paid Monthly:question:

No that's not what I'm asking... I know that and it's not about compound interest....it's about qualifying for the bonus and not having the bonus. It clearly states MONTHLY interest 2.98% if you qualify for the bonus. I have, yet have only received 1.98%. They are justifying this by saying I will get 1.98% and a 1% bonus at the end of the year. But they clearly state the 1% and qualifying bonus makes the MONTHLY bonus 2.98% if you qualify and 1.98% if you don't. So my query is why am I not getting 2.98% on my savings PER MONTH! That clearer?

vpdanas

geoffken wrote: »

Do you REALLY think you would get 36% per year or even more when compounded !!!!

No that's not what I'm asking... I know that and it's not about compound interest....it's about qualifying for the bonus and not having the bonus. It clearly states MONTHLY interest 2.98% if you qualify for the bonus. I have, yet have only received 1.98%. They are justifying this by saying I will get 1.98% and a 1% bonus at the end of the year. But they clearly state the 1% and qualifying bonus makes the MONTHLY bonus 2.98% if you qualify and 1.98% if you don't. So my query is why am I not getting 2.98% on my savings PER MONTH! That clearer?

le_loup

What do you think AER stands for?

le_loup

What do you think AER stands for?
........................