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New Nationwide Ebond Rates Out


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Got a nice surprise when trying to buy an eBond for the missus today - the rates have gone up. And not by a little. I plumped for the 3.5% 1 year eBond in the end, but I remember that a previous rate was 3.1% for 18 months.

Perhaps there is an expectation that QE ending will increase the price of money? Either way it's great news for me.

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Got a nice surprise when trying to buy an eBond for the missus today - the rates have gone up. And not by a little. I plumped for the 3.5% 1 year eBond in the end, but I remember that a previous rate was 3.1% for 18 months.

Perhaps there is an expectation that QE ending will increase the price of money? Either way it's great news for me.

Abbey currently doing an 18 month branch based bond at 4%?

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Got a nice surprise when trying to buy an eBond for the missus today - the rates have gone up. And not by a little. I plumped for the 3.5% 1 year eBond in the end, but I remember that a previous rate was 3.1% for 18 months.

Perhaps there is an expectation that QE ending will increase the price of money? Either way it's great news for me.

QE won't end anytime soon - they will announce some sort of extension beyond the original one hundred and fifty billion quid of funny money.

It's practically the only thing that's maintaining the image of UK solvency by preventing failed gilt sales.

100% guaranteed.

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Abbey currently doing an 18 month branch based bond at 4%?

I tried sorting out the Rothschildreserve 4.35 over 2 years thing a couple of weeks ago, but moving 50K in one chunk is a pita. With NW I can do it all online in smaller chunks.

Also, the tax-free status process with NW is simple to do.

That's where most of these things lose out, the setup and maintenance process can be tiresome, especially if you don't have time and are doing it on behalf of someone else.

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Thoughts people?

http://www.newcastle.co.uk/savings/5yearfixedrateisa

Its too long isnt it? I may use this as i dont intend touching my ISA even for a house.

But it tells you all you need to know re long term trends.

Hi

It is a long period but withdrawals ( Transfers to another ISA ) are available at 90 days notice.

Also with the Newcastle 5 year 5% Fixed Rate Bond - Withdrawals are at 90 days notice. This seems to be the best of both worlds. My wife and I have both opened one and are in the process of transferring the maximum ( FSCS ) into the accounts.

Newcastle BS 5 Year 5% Bond ( With 90 Day Access )

Regards

M21er

Edited by M21er
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Rates are definitely on the increase - Just noticed that MoneyFacts shows a 5 Year Bond with Ruffler bank ( No - I've never heard of them either! ) at 5.21% aer which gazumps the Newcastle headline rate.

MoneyFacts - Long Term Fixed rate Bonds - Ruffler 5.21% aer 5 Year

BUT: No early access allowed so personally the Newcastle 5 year bond is better. You're giving up 0.21% pa to have the option of higher rates in a couple of years time

M21er

Edited by M21er
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Rates are definitely on the increase - Just noticed that MoneyFacts shows a 5 Year Bond with Ruffler bank ( No - I've never heard of them either! ) at 5.21% aer which gazumps the Newcastle headline rate.

MoneyFacts - Long Term Fixed rate Bonds - Ruffler 5.21% aer 5 Year

BUT: No early access allowed so personally the Newcastle 5 year bond is better. You're giving up 0.21% pa to have the option of higher rates in a couple of years time

M21er

Good work.

I'm shovelling £42k their way soon.

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Thoughts people?

http://www.newcastle.co.uk/savings/5yearfixedrateisa

Its too long isnt it? I may use this as i dont intend touching my ISA even for a house.

But it tells you all you need to know re long term trends.

Seeing as though the interest is paid annually (rather than at the end of the 5 years) I guess you could look at it as a one year tie in rather than a five year one.

Have I read that right?

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Seeing as though the interest is paid annually (rather than at the end of the 5 years) I guess you could look at it as a one year tie in rather than a five year one.

Have I read that right?

Hi BB

It's just 90 days notice required to move to another provider if they are paying a higher rate than the 5% from Newcastle BS.

As with their 5 Year Bond ( See earlier posts ) this seems to be the best of both worlds. A higher rate assocated with locking up your money for longer periods but with the benefit of reasonably short notice to transfer to another ISA.

Disclaimer: As ever, DYOR and no more than the £50k FSCS limit

M21er

Product Terms and Conditions

The Newcastle's General Investment Terms & Conditions will apply unless they are inconsistent with these Special Conditions, effective from the date of the account opening.

The account is a fixed rate account.

The account can be applied for online and operated by post.

The minimum investment in the account is £1. The maximum is your allowance for 2009/2010 tax year of £3,600 plus transfers from other ISA providers are also permitted.

The account can be held in a single name only.

After placing your Investment in the account you may make further deposits while the account is a current issue and subject to ISA limits. The account is limited issue and may be withdrawn at any time.

Withdrawals or transfers out can be made subject to 90 days notice. Withdrawal requests must be made in writing.

On maturity the account will automatically transfer to the Newcastle's designated maturity account. We will write to you prior to maturity to advise you of any amendments to the Terms & 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.

Interest is calculated daily and is credited to the account annually.

Details are correct as at 23/06/2009.

Edited by M21er
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So if you were to start looking for a house in March 2011 and needed to take out the money, you'd have to notify the building society in December 2010 so you'd be illiquid for 3 months?

Also their T&Cs state:

3.The minimum investment in the account is £1. The maximum is your allowance for 2009/2010 tax year of £3,600 plus transfers from other ISA providers are also permitted.

Does that mean you can only pay in £3,600 to your account for the 2009/2010 tax year?

Edited by Kazuya
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