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Newcastle Building Society

Type: Fixed rate postal bond

Description: Newcastle has announced the launch of its new postal bond, with a fixed rate of 6.8 per cent gross/ annual equivalent rate.

Conditions: The bond is available on a minimum investment of £5000 and maximum of £500,000. The bond is operated by post and is available with a maturity date of August 28, 2009.

The Society is allowing customers access to up to 25 per cent of the invested amount at any time, without notice or loss of interest. Minimum age is 18 years old.

Contact: www.newcastle.co.uk

Verdict: This is an attractive product and would encourage investors to hold cash that is not required straight away. It is important to try to find best rates for clients and this product certainly fits into this category. However there is a worry over smaller building societies such as the Newcastle, especially if a client is holding more than £35,000.

Rating: 3/5