EXPIRED - 5 YR FIXED 5.0% (GROSS) AER ISA from NEWCASTLE BUILDING SOCIETY

Not great if inflation rockets in the next 1-2 years. Deals of 4.5% are available over 2 years which might be a better bet in the long run.

No way would I tie my money up for 5 years at a mere 5%.
Sorry but cold.

Not cold at all, its the rate that is fixed not the investment period.

If you read the Ts & Cs you would see that it clearly states "Withdrawals can be made subject to 90 days notice. Withdrawal requests must be made in writing. "

So its a 3 month fix at most.

COLD.. 5 yrs.. No WAY!!

Yawn, read the Ts & Cs.

fyi, 5% compound interest over 5 years equates to 27.63% growth on your original capital.

e.g. If you put in £1000 then it would be worth £1276.28 at the end of 5 years. This seems like quite a good guaranteed rate.

Might be useful to find out when interest payments are made. i.e. is it monthly, twice yearly or annually? My Intelligent Finance ISA is paid every month, which is great. It's rate of return, however, is not!

Yearly on July 31st. I think this is a good deal at the moment, it allows transfers in from other providers, is the highest rate deal and only has a 3 month tie in, but if interest rates don't go up significantly over the next couple of years then you can stay in.

Seems a great deal and the best rate around. The 5 year fix seems a win-win situation - you get this high rate now and for up to 5 years if you want it and the interest rates do not rise. If interest rates rise then you move the funds - with just 90 days notice and no loss of interest. This has a really hot financial deal.

what is meant by Access By Post, following maturity.
does that mean that you can not access funds before maturity.

Yes - very good question. It might be that you can withdraw but are unable to transfer - rate tarts like me would want to do this, of course. I would not want to wait until maturity if a significantly better rate comes along.

EDIT: I think CentaurAndrew is mistaken. Just checked the terms and conditions, and it seems that you are expected to keep the account for the full 5 years. You can withdraw funds, but there is no mention of transferring to another ISA provider (as I would do if the rates elsewhere are better) - withdrawing funds means you cannot reinvest as a tax free ISA. So if you invest funds that you want to keep for a long term investment with a good rate, I would suggest this is not the best account as interest rates are expected to rise in line with an expected rise in inflation. The rate is excellent right now - but look back just one year to see how the rates have changed dramatically. I would guess similar dramatic increases in rates are on the cards within 2 years - a 5 year lock in is no good to me. So, although I voted hot - I believe it should have been cold for me.

Can anybody tell me (in VERY simple English) what or where the best investment of £1000 plus £50 per month would be?

In my opinion it's worth a punt if you are only tying up some of your savings.
For someone with say 30k to invest could do worse than putting their full allowance in this (£3800 I think)
Don't forget it's tax free too, equating to over 9% for higher rate tax payers and about 6.5% for everyone else

inflation will go up in 18 months, not worth it. 3 years would be acceptable.

Allowance this year for cash ISA is £3600, not £3800

Mr Calculator will confirm that it actually equates to a taxed interest rate of 8.33% for a higher rate tax payer and 6.25% for a basic rate tax payer.

5% for 5 years is good for somebody who doesn't believe those who forecast a significant increase in inflation a couple of years down the road. I do believe them.