New 5-yr ISA beats rivals into the top 10 | Product News - Moneyfacts

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New 5-yr ISA beats rivals into the top 10

New 5-yr ISA beats rivals into the top 10

Category: Savings
Date: 27/10/2014

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Newcastle Building Society has unleashed three new fixed rate ISAs into the market, with the five-year version pushing straight into the top 10 of the Moneyfacts charts.

The basics…

Five Year Fixed Rate ISA (Issue 1) has a rival-beating rate of 2.40% per annum (2.37% monthly) until 25.11.19.

Meanwhile, the one-year version has a rate of 1.40% yearly (1.39% monthly) until 25.11.15 and the two-year variant has a rate of 1.70% per annum (1.69% per month) until 25.11.16.

The finer details…

These ISAs can be opened by phone, online, in branch and by post with a minimum initial investment of £500, and can then be managed by all methods except by phone.

Further additions are welcome while the issues remain open, and transfers in of cash and stocks & shares ISAs are also permitted.

Early access and transfers out of the accounts are possible, although this will incur a penalty of 90 days' loss of interest for the one-year ISA, while the two-year version will incur a 120-day loss of interest penalty and early withdrawal from the five-year account will result in a 180-day interest loss.

Why we like them…

The five-year ISA offers a very attractive rate, which is sure to pique the interest of savers. This account also offers investors a lot of flexibility, with the option to choose a monthly interest account and make further additions. The ability to access funds early is also quite unusual for a fixed rate account, and although this will incur a penalty, its flexibility is likely to prove to be a bonus for savers.

Four Moneyfacts Stars have been awarded.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

 

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

 
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