4.2% 1yr saving Newcastle BS Bond - HotUKDeals
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4.2% 1yr saving Newcastle BS Bond

£0.00 @ Testing
Hope this is in the right place - if not please move mods. From MoneySaving Expert "Urgent! 4.2% 1-yr fixed savings loophole Ready, set, GO! Last one like this disappeared in 24 hours. Beats top… Read More
theclaretvillain Avatar
6y, 2w agoFound 6 years, 2 weeks ago
Hope this is in the right place - if not please move mods.
From MoneySaving Expert
"Urgent! 4.2% 1-yr fixed savings loophole
Ready, set, GO! Last one like this disappeared in 24 hours. Beats top 2-year fix.
Fixed rate savings give high guaranteed rates, but you normally need to lock cash away. Occasionally we spot those allowing free withdrawals, so you get the high rate & access. All below have full £85,000 UK Savings Protection.
• Earn 4.2% AER for a year. The online Newcastle BS 5-Year Premier Bond pays 4.2% AER; not a high rate over five years, but unusually it allows penalty-free withdrawals with 180 days' notice. So you can apply, diarise to give notice in 6 mths, and it effectively becomes a 1-year bond at 4.2% interest, far higher than the top standard 1-year deal (3.55%) or even 2-year (4.01%), so you could keep it longer. "
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theclaretvillain Avatar
6y, 2w agoFound 6 years, 2 weeks ago
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#1
Good rate for now - by 2016 rates will be higher but you can withdraw with 180 days notice.
#2
JR Hartley
Good rate for now - by 2016 rates will be higher but you can withdraw with 180 days notice.

Its the ability to withdraw after 180 days that makes it good. If interest rates go up you are not tied in.

Edited By: theclaretvillain on Jun 15, 2011 10:42
#3
say this on my money saving experts email this morning, never been to sure about going for these as I keep thinking i'll miss the relevant day!
#4
good rate, doubt there is better actually.
#5
The minimum investment in the account is £500
#6
So with 180 days notice this is actually a 6 month account @4.2% (gross). Hot!
#7
Hot. Got two 5 year fixes with these.One is an isa lump sum and the other a ordinary sum.Both are 5% fix at ninety days notice.Took out on line but can't view on line,have to phone for balance but might have changed now.
#8
The Newcastle Building Society has done something similar before. I suspect they’ve learnt that they can attract more interest by offering the early withdrawal option even though many depositors won’t use it.

A savvy depositor might be prepared to sacrifice 0.55% in order to have the early withdrawal option especially if they think rates might be around 7% in eighteen months time.
#9
good rate but ns&i index linked looks good to at 5yr inflation linked + 0.5%.. tax free.. less risky than building society..

currently around 6% gross yield.. withdrawals allowed after 1 yr with penalty

Edited By: anh_duong on Jun 15, 2011 11:26
1 Like #10
xigent
A savvy depositor might be prepared to sacrifice 0.55% in order to have the early withdrawal option especially if they think rates might be around 7% in eighteen months time.

I'd be willing to bet my house that they won't be though.
#11
"the maximum [investment] is £1,000,000"

No good for me then.
#12
can you only make one deposit?
#13
You can make deposits up to 20 days after opening the account. I phoned up to check.
#14
hedgehog87
You can make deposits up to 20 days after opening the account. I phoned up to check.


ah thanks for the info, couldnt find it anywhere on description.
#15
anh_duong
good rate but ns&i index linked looks good to at 5yr inflation linked + 0.5%.. tax free.. less risky than building society..

currently around 6% gross yield.. withdrawals allowed after 1 yr with penalty


1) the .5% is compounded over 5 years.
2) current gross yield is meaningless - its all about what inflation would be one year on from now
3) still a good offer - but remember you're essentially betting against the guys at the bank of england.

this is nice offer, rate won't rise this year
#16
Effectively it's 4.2% account with 6 months notice. Opened 2 accounts for me and the missus last night as I missed the last one. Martins email came through late and the offer was oversubscribed and closed by lunchtime.

This will be gone by tonight as 6.1m people have or will be receiving Matins weekly email today.
#17
hedgehog87
You can make deposits up to 20 days after opening the account. I phoned up to check.

So no deposits whatsoever are allowed after this time?
#18
Is the money "locked" in for 6 months or can you withdraw anytime with a penalty of no interest i.e a get out clause?

I know it says 180 days notice is required for withdrawl so I guess putting in money that may be required at short notice is not so wise?

Edited By: Vegeta on Jun 15, 2011 12:41
#19
deviouspaul
The minimum investment in the account is £500

Barely worth investing as little as that though! You'd make ~£20 !
#20
Vegeta
Is the money "locked" in for 6 months or can you withdraw anytime with a penalty of no interest i.e a get out clause?

I know it says 180 days notice is required for withdrawl so I guess putting in money that may be required at short notice is not so wise?


Correct, best to put money in here you wont need anytime soon.

I've also applied for this although probably will give my notice in about a year or so, depending on what the rates are doing then.
#21
le_jaeger
deviouspaul
The minimum investment in the account is £500

Barely worth investing as little as that though! You'd make ~£20 !


Better than nothing though... especially if you dont need that money anytime soon
#22
never really understood things like this, for example if I put in £1000 now how much will there in one year, could someone a little brighter explain please :)

Edited By: WORTHLESSACORN on Jun 15, 2011 12:51
#23
WORTHLESSACORN
never really understood things like this, for example if I put in £500 now how much will there in one year, could someone a little brighter explain please :)

If it gives you 4.2% annual interest, you will have your original investment + 4.2% of that initial investment on top. As 4.2% of £500 is £21, you will have £500 + £21 = £521.
#24
le_jaeger
deviouspaul
The minimum investment in the account is £500
Barely worth investing as little as that though! You'd make ~£20 !

A lot less than £20 when you take TAX into account.
1 Like #25
WORTHLESSACORN
never really understood things like this, for example if I put in £500 now how much will there in one year, could someone a little brighter explain please :)


4.2% AER (Annual Effective Rate; e.g. your money will grow as if if the interest was compounded once a year)
So,
After year 1 your balance will be: £500 x 1.042 = £521
After year 2 your balance will be: £521 x 1.042 = £542.88
After year 3 your balance will be: £542.88 x 1.042 = £565.68

After n years your balance will be: £500 x (1.042^n)


Edited By: TehJumpingJawa on Jun 15, 2011 12:59
1 Like #26
With the way savings rates are at the moment it makes better sense to start kitting out your house with energy efficent items, cavity wall, fuel efficent car etc and in the long term reap the savings of reduced utilities, than to invest £1000 and have an extra £40-50!

The bonus is that trade are desperate for work in some areas so give better rates just to have work so you get more for your money.
#27
hedgehog87
You can make deposits up to 20 days after opening the account. I phoned up to check.

Your initial deposit must be made within 20 days of opening the account. Is this not what you mean?

If this is the case, then it looks like deposits are allowed across the lifetime of the account, not just the initial 20 day period you stated.
#28
super_leeds_86
With the way savings rates are at the moment it makes better sense to start kitting out your house with energy efficent items, cavity wall, fuel efficent car etc and in the long term reap the savings of reduced utilities, than to invest £1000 and have an extra £40-50!

The bonus is that trade are desperate for work in some areas so give better rates just to have work so you get more for your money.


But if you had (for example) £200,000 that's a heck of a lot of insulation and energy efficient items!! Agreed for £1000 savings it isn't really worth the bother though.


Edited By: Searcher2 on Jun 15, 2011 13:03
#29
hot for me, have too much money to fit in my cash ISA!
#30
How good is this compare to the NS&I Index-linked Saving Certificates?
#31
Searcher2
super_leeds_86
With the way savings rates are at the moment it makes better sense to start kitting out your house with energy efficent items, cavity wall, fuel efficent car etc and in the long term reap the savings of reduced utilities, than to invest £1000 and have an extra £40-50!

The bonus is that trade are desperate for work in some areas so give better rates just to have work so you get more for your money.


But if you had (for example) £200,000 that's a heck of a lot of insulation and energy efficient items!! Agreed for £1000 savings it isn't really worth the bother though.



Yeah for a figure that size it's good.

or you could invest £50k and setup a business fitting insulation, PIR sensors and other kits to people's houses and make more than the 4% back.
#32
I thought savings account were for pensioners.
1 Like #33
Is this 1080P?
3 Likes #34
aston_martin_own
I thought savings account were for pensioners.

And debt is for young'uns?

It's that way of thinking that has brought this country to it's knees and now the savers are being sacrificed via low BoE base rates to save the indebted...
#35
HankMcSpank
Is this 1080P?


depends how much you invest...
#36
Vegeta
aston_martin_own
I thought savings account were for pensioners.

And debt is for young'uns?

It's that way of thinking that has brought this country to it's knees and now the savers are being sacrificed via low BoE base rates to save the indebted...

WELL SAID vegeta !
#37
does it mean 3.2% after tax than?

if yes than i think i should transfer my whole ISA money for a year or two.

somebody plz clarify!

Edited By: rsbutt on Jun 15, 2011 15:06
#38
centaurandrew
xigent
A savvy depositor might be prepared to sacrifice 0.55% in order to have the early withdrawal option especially if they think rates might be around 7% in eighteen months time.


I'd be willing to bet my house that they won't be though.


In which case you might do better to take the extra 0.55% unless you anticipate a need for the money in the next five years.

Edited By: xigent on Jun 15, 2011 15:06
#39
Sweetchuck
hedgehog87
You can make deposits up to 20 days after opening the account. I phoned up to check.

Your initial deposit must be made within 20 days of opening the account. Is this not what you mean?

If this is the case, then it looks like deposits are allowed across the lifetime of the account, not just the initial 20 day period you stated.


i may ring them to find out. if you can make deposits throughout the life of the account then its a winner for at least a year for me
#40
just read the T's&C's and looks like deposits throughout the lifetime of the account can be made.

Term
8.1 After placing your initial Investment in the
Account you may make further deposits while the
Account is a current issue, subject to the product
Special Conditions.

Looking at the Special Conditions there is no mention of sinlge or limited deposits etc.

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