kaupthing terms

mrbrown

Hi,
I have some savings in a kaupthing account. I want to fix most of my savings (or all). I want to know what will happen to the interest if I did need to (I really dont foresee me doing this) take money out of the fixed term account. Ive just read the terms, and I think that if i did withdraw funds from a fixed account, then that account would close and the interest rate up to that point would drop by 1%. If this is so, then thats almost as good as their non-fixed account interest rate. So it would be worth me taking the chance of fixing all my savings for 1 year. Does that make sense? I just wandered if someone on this forum has done this or have knowledge of it.
thanks.

Stompa

As far as I know it does work in the way you've suggested.

These threads may be of interest:

http://forums.moneysavingexpert.com/showthread.html?t=1072599

http://forums.moneysavingexpert.com/...html?t=1070479

http://forums.moneysavingexpert.com/showthread.html?t=1056391

ian-d

Sorry to continue this thread which has been discussed before, but I'm not as knowledgeable on the subject to understand fully the in's and out's.

I have (or soon will have) a non-fixed savings account with Kaupthing. The gross interest rate is 6.36%. The money is likely to remain untouched, but if say I put it into the 3 year fixed term savings account, at a rate of gross 7.67%, then needed to withdraw the money within that period, is it as simple as just getting 1% less for every day in the account, so 6.67%?

If so, why would anyone just use the non-fixed saver when a better rate can be had, just as long as your not dipping in and out all the time, as I suspect they will not like that!

Steve_xx

ian-d wrote: »

I have (or soon will have) a non-fixed savings account with Kaupthing. The gross interest rate is 6.36%. The money is likely to remain untouched, but if say I put it into the 3 year fixed term savings account, at a rate of gross 7.67%, then needed to withdraw the money within that period, is it as simple as just getting 1% less for every day in the account, so 6.67%?

If so, why would anyone just use the non-fixed saver when a better rate can be had, just as long as your not dipping in and out all the time, as I suspect they will not like that!

Yes you're right it seems. Although if you did need to break the term of the account you would have to close it and all of the monies would immediately be forwarded to their savings account. You cannot dip in and out at will. But as you say, at todays rates you would obtain 6.67% if you broke the bond.

mrbrown

yes ian, youve mirrored my thoughts. I will probably fix all my savings (bar a few hundred pounds for emergencies). im going read the links that stompa has posted.
thanks guys.

mrbrown

just read the other posts. i think ill put a 3rd of my savings fixed for 2 years, a 3rd fixed for 1 year and another 3rd fixed for 1 year.
thanks

Essenchill

Steve_xx wrote: »

You cannot dip in and out at will.

Does that basically mean you can't take money out? Can you keep adding to it? or does that also count as breaking the bond?

Steve_xx

Essenchill wrote: »

Does that basically mean you can't take money out? Can you keep adding to it? or does that also count as breaking the bond?

You cannot add to the bond once it's set up. If you decide to withdraw, then you must withdraw the lot. You could set up several bonds, each with small amounts in, and then if you needed to withdraw monies you wouldn't have to disturb all of it.

ed123_2

...are there limits to the number of bonds you can set up?..ie if you wanted to keep within the £35k compensation limit, could you set up 35 £1k accounts?

Steve_xx

ed123 wrote: »

...are there limits to the number of bonds you can set up?..ie if you wanted to keep within the £35k compensation limit, could you set up 35 £1k accounts?

Yes.........

TehJumpingJawa

That seems absolutely ludicrous from an account management perspective :eek: