The Newcastle Big Home Saver ISA

10_66

amiehall wrote: »

I opened this account with an initial £1 investment, but I've just received my paperwork and it's all noting two £1 payments made into the account on the same day.

While I'm not complaining about some free money, it just seems very odd. I only have 1 payment removed from my bank account. Has this happened to anyone else?

Nope. Have made two payments into it for different amounts, and the statement only shows those that I have made.

jen_79

I have two questions if anyone can help:

1) Why would anyone choose any of their standard Cash ISA products over this one? You aren't obligated to take out a mortgage with them, so I don't understand, especially as there is no penalty for a withdrawal (except for loss of bonus interest).

2) I understand you can't transfer to this but can I close my old ISA with NS&I tomorrow and then apply for this one the day after?

Thanks :money:

Herbalus

jen_79 wrote: »

1) Why would anyone choose any of their standard Cash ISA products over this one? You aren't obligated to take out a mortgage with them, so I don't understand, especially as there is no penalty for a withdrawal (except for loss of bonus interest).

Some people are crazy.
Others have larger sums to invest and think it's better to put it all in at a lower rate than feed it in slowly.
Other people don't like the idea of having to pay in every month, even just £1.

jen_79 wrote: »

2) I understand you can't transfer to this but can I close my old ISA with NS&I tomorrow and then apply for this one the day after?

If you haven't paid into this NS&I ISA since 5 April (and haven't paid into/opened any other other ISA since that time), you can open one today.

innovate

1 - no transfers in, and you cannot pay in more than £1,250 a month. So no use to anyone who wants to make full use of their 2014-15 allowance whilst retaining ISA balances from previous years, and certainly no use to anyone who wants to deposit more than £1,250 a month.
It might be better to save up in current accounts, but you'd then need to find a different ISA next March if you wanted to use your ISA allowance for this year, as you couldn't use your Entire ISA allowance in one month in the BHS one.

2 - if you have made any deposit into an ISA this financial year, you cannot close it and start depositing a new one. You can do what you describe if you haven't made any deposits this FY.

Herbalus

innovate wrote: »

1 - no transfers in, and you cannot pay in more than £1,250 a month. So no use to anyone who wants to make full use of their 2014-15 allowance whilst retaining ISA balances from previous years, and certainly no use to anyone who wants to deposit more than £1,250 a month.

Just to clarify a little, nobody can pay more than £1250 every month because they'd reach the £15,000 ceiling.

And people who retain ISA balances from previous years can just leave them be and use a BHS this year, correct? Unless you mean they want to deposit the full allowance at the start of the year in these previous ISAs, but in that case they can't have any more ISAs anyway, so aren't eligible to choose between the BHS and the EasyAccess ISA.

innovate

Herbalus wrote: »

Just to clarify a little, nobody can pay more than £1250 every month because they'd reach the £15,000 ceiling.

And people who retain ISA balances from previous years can just leave them be and use a BHS this year, correct? Unless you mean they want to deposit the full allowance at the start of the year in these previous ISAs, but in that case they can't have any more ISAs anyway, so aren't eligible to choose between the BHS and the EasyAccess ISA.

Everybody can deposit £1,250 a month, and it's ok to reach the £15,000 ceiling. Why do you think this would not be possible?

Regarding the rest of your comments.I was just answering jen_79's question, not give a general rundown on ISA rules.

Herbalus

innovate wrote: »

Everybody can deposit £1,250 a month, and it's ok to reach the £15,000 ceiling. Why do you think this would not be possible?

A misunderstanding there. It's fine to reach the £15k ceiling, but I was noting that for those people who want to deposit more than £1250 per month (that you referred to in your previous post), they can't do that for the whole year because they'd reach the £15k ceiling and can't exceed it.

innovate

Ah right, I see where the misunderstanding started. You are correct, I did not mean to suggest that you could deposit more than £1,250 every month. Bad wording on my part:o

Milarky

Has anyone else spotted that by having this account you may hit a snag in the following tax year?

To get the bonus (1%) - for the month you must continue to fund the account indefinitely. This means that in the following tax year (2015/16) if you haven't transferred away and like the look of another provider's ISA you'd 'forfeit' the bonus by going for that and ceasing funding the Newcastle BH ISA in the process?

innovate

They'll 'get you' at least once with no bonus payment, as there won't be any bonus payment in any month you make a withdrawal, too. So if you are after maximum bonus, transfers out/withdrawals should be attempted immediately after a "monthly anniversary" as they call it.