west bromwich

phoebe03cat · 11 January 2009 at 11:00PM

Thinking of investing 70k with wb as its 1 year fixed seems to be top of the list. Any comments much appreciated.

fullstop · 11 January 2009 at 11:06PM

Stick to £50.000 just to be on the safe side.

10_66 · 12 January 2009 at 8:18AM

I had some issues with WB a month or so ago. I had a regular saver account with them which had matured and should have received a bonus. On closure of the account the bonus had not been added, and despite it being obvious that only the interest had been added, but no bonus, they refused to accept that there was a problem. This resulted in a lot of frustrating phone calls to them, wasting time and finally, having to make a complaint. They eventually admitted that there had been a problem with their computers on a "small number" of these regular saving accounts that had matured on a particular day. Personally, I wouldn't be too happy saving with them again, but as they said this only happened to a small number of savers, I'm sure other people will have uncomplicated experiences of them.

bristolleedsfan · 12 January 2009 at 12:44PM

http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=453098&in_page_id=7

Worst that will happen is that Nationwide BS will add Westbromwich BS to its portfolio during 2009, all depends on whether Westbromwich BS will be possibly allowed to announce a loss in Spring 2009 :rolleyes:

soulsaver · 12 January 2009 at 1:30PM

fullstop wrote: »

Stick to £50.000 just to be on the safe side.

If you go down this route, I'd recommend c £47k, leaving a bit of headroom for interest to accrue without going over 50k. In the (possibly unlikely) event that the FSCS rules were strictly applied you only get compensation for interest paid and applied to the account, so if possible opt for monthly interest added to the account.

cvd · 12 January 2009 at 1:39PM

Worst that will happen is that Nationwide BS will add Westbromwich BS to its portfolio during 2009,

No that is not the worst that can happen. I think the Nationwide is now fully stetched with absorbing the problems of the Derbyshire and Cheshire.

So the question is: what other building societies are large enough to absorb the WB if it got into difficulties? The Yorkshire and Skipton are already involved in bail-outs. There are very few other large societies left and they may say no becasue it might tip them over the edge.

So it might be up to the government to step in - I am quite confident they would but there would be a period of uncertainty.

I used to have over £50,000 in the WB - but not any more! The risk is too great for me.

bristolleedsfan · 12 January 2009 at 7:18PM

cvd wrote: »

So the question is:

IMO, Whats in the best interest of both Mr Beale and Mr Sharpe. :think:

http://www.nationwide.co.uk/mediacentre/merger.asp

http://www.telegraph.co.uk/finance/2947215/Portman-windfall-excludes-wives.html

Mr Sharpe is famous for doing Merger

which of course have been financially rewarding for himself.

http://www.cashquestions.com/forum/showthread.php?t=8819

http://www.birminghampost.net/birmingham-business/birmingham-business-news/other-uk-business/2008/10/13/new-chief-silent-over-west-bromwich-building-society-plans-65233-22026579/

Would Nationwide ever turn down a BS freebie where its assets exceed its liabilities. :think:

baby_boomer · 12 January 2009 at 7:24PM

I see that Moody's is now warning of building society losses in 2009. Nationwide is moaning about having to pay for Northern Rock savers. What better way to put pressure on the government than to refuse to save West Brom, Newcastle or whichever BS next gets into trouble.

Imagine the savings inflows to Nationwide in those circumstances from the medium sized BSs who have lost their members' money in Iceland / commercial property / buy-to-let / estate agencies / directors' bonuses etc. etc.

When planning your savings in these times, it's best to fear the worst, then you can only be surprised on the upside

.

Having said that, a deal between Beale and Sharpe in 2009 is not something I'd bet against. But it's more likely to result in a windfall for Sharpe than for West Brom members. And Beale's long term windfall as the Nationwide hoovers up other societies is ripening nicely.

bristolleedsfan · 12 January 2009 at 7:48PM

baby_boomer wrote: »

And Beale's long term windfall as the Nationwide hoovers up other societies is ripening nicely.

:T Thats correct, the bigger the organisation and the higher the assets it holds the higher the salary and bonus the C.O.E will be able to demand. _pale_

Building Societies that have historically profited from its low paying savings accounts will see those profits wiped out at a stroke the lower the base rate goes. :j

mike_the_bike_2 · 12 January 2009 at 11:27PM

Quick question...The west brom is offering a one year bond with a pretty good interest rate 4.65 I think compared to others...I'd invest less than 50k

If they go belly up will I get back just my capital invested or the capital including the interest due on the maturity date?

Any knowledgeable ones out there that know the answer?

pollypenny · 13 January 2009 at 4:17PM

Mike, we had a two year bond with London Scottish.
We were very quickly contacted by the FSA, who say that we can access money, plus interest on maturity.

west bromwich

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