Principality BS 6 Month FIX 6.49% ( 6.60 AER)

bristolleedsfan · 7 April 2008 at 10:46AM

http://www.principality.co.uk/default.aspx?page=815

Milarky · 7 April 2008 at 12:52PM

The 6.60% AER equates to 3.245% after 6 months. Thereafter it transfers to their variable rate cash ISA paying just 5.10% AER. It would be nice if Principality allowed a transfer from there to their e ISa paying 6.00% AER - to make life easier (but somehow I doubt they would) Interestingly, the terms of both the FR ISA and the e ISA stipulate a transfer 'on default' to the bog standard ISA, so they couldn't argue that they weren't able to do a reverse transfer really could they?

If you could get the 6% in six months (interest is paid 6th April) straight after the 6.6% one the rate would actually be (1.03234)*(1.03) -1 /100 or 6.34%

skyepark · 7 April 2008 at 3:48PM

so is it worth it to transfer out to abbey who pay interest on transfer?

bristolleedsfan · 7 April 2008 at 3:57PM

Milarky wrote: »

TThereafter it transfers to their variable rate cash ISA paying just 5.10% AER. It would be nice if Principality allowed a transfer from there to their e ISa paying 6.00% AER - to make life easier (but somehow I doubt they would)

To be fair it does say :

Transfers to our Variable Cash ISA or any other Cash ISA to which you wish to transfer at the time of maturity.

Which means it can be moved to Principality E-ISA, reason they dont default it automatically to an E-ISA is that not everybody wants and or has the ability to operate accounts online.

Its an option for those who dont want to fix for a year, personally ive just fixed my 2008/09 ISA allowance for 12 Months @6.25% and I believe that by October Base Rates will be at least 0.50% lower than they are today. ( possibly 0.75% lower )

Someone will say that not all savings rates are following Base Rates, true thats not to say they will still be at current rates in 6 Months time.

skyepark · 7 April 2008 at 5:14PM

i guess i cant transfer out before 6months

bristolleedsfan · 7 April 2008 at 5:31PM

skyepark wrote: »

i guess i cant transfer out before 6months

U could apply to a new provider say a month or so before the 6 Month fixed rate is due to end and give instructions to Principality BS that they transfer out immediately on maturity.

Principality BS 6 Month FIX 6.49% ( 6.60 AER)

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