Newcastle BS have issued a Premier Bond (Issue 2) paying 4.40% AER which allows penalty free withdrawals after 180 days notice. Therefore this can effectively be used as a 6 month - 1 year 4.40% fixed rate bond (provided you give appropriate notice).
Product Special Conditions
The Newcastle's Savings General Terms & Conditions will apply unless they are inconsistent with these Special Conditions, effective from the date of the account opening.
1. The account is a fixed rate account.
2. The account can be operated in branch, by telephone, post or online.
3. The minimum investment in the account is £500 the maximum is £1,000,000.
4. The account can be held in single or joint names.
5. After placing your Investment in the account you may make further deposits while the account is a current issue. The account is a limited issue and may be withdrawn at any time.
6. Withdrawals are permitted subject to 180 days notice.
7. On maturity the account will automatically transfer to the Newcastle's maturity account. We will write to you prior to maturity to advise you of any amendments to the terms and conditions of your account. Following the day of maturity you have 28 days in which to withdraw funds penalty free, thereafter the Maturity Account Terms & Conditions will apply.
8. Interest is calculated daily and is paid annually or monthly.
9. Should the final day of a calendar month be a business day then any monthly interest paid to a third party will be paid on that day. Otherwise it will be paid on the following business day. Any final monthly interest due on maturity will be credited to the account.
10. Interest can be paid to your account, to another account with the Newcastle or to a third party bank or building society account.
11. Should the balance held in the account fall below the Minimum Balance stated above, interest will be paid at a rate of 0.10% Gross*/AER**
12. You will access your account in the same manner as you opened the account. For example if your Account is a passbook Account your Account will be operated by passbook.
13. Details are correct as at 31/03/2011.
Thanks to MSE Martin.