Birmingham Mids 7.05% 1 year Bond

Speculator

Good news! Looks like Fixed rate savings rates are on the way up.

WEF: 27/9

ONE YEAR INTERNET FIXED RATE BOND: a one year fixed term internet operated account with a minimum investment of £1 paying 7.05% on maturity (6.83% monthly).

https://www.emoneyfacts.co.uk/news/savings-news.aspx?newsarticleid=175624

stevetodd

Speculator wrote: »

Good news! Looks like Fixed rate savings rates are on the way up.

WEF: 27/9

ONE YEAR INTERNET FIXED RATE BOND: a one year fixed term internet operated account with a minimum investment of £1 paying 7.05% on maturity (6.83% monthly).

https://www.emoneyfacts.co.uk/news/savings-news.aspx?newsarticleid=175624

I'm glad you flagged this up as I as about to transfer 40k into my BM 1 year bond but only 6.7%! I just rang BM and they said I need to apply for the new account tomorrow afternoon (or later). Thanks you earned me extra interest

Speculator

You're welcome.

Also, the AA 1 yr Fixed rate Bond operated by Birmingham Mids will be launched tomorrow as well paying 7.21%.

see https://www.emoneyfacts.co.uk/news/savings-news.aspx?newsarticleid=175621

stevetodd

Speculator wrote: »

You're welcome.

Also, the AA 1 yr Fixed rate Bond operated by Birmingham Mids will be launched tomorrow as well paying 7.21%.

see https://www.emoneyfacts.co.uk/news/savings-news.aspx?newsarticleid=175621

Why are BM offering 7.21% via the AA yet only 7.05% under their own name?

Speculator

No idea but bear in mind that the AA Bond can only be opened by cheque or transfer from an existing AA savings account.

edit. Ignore what I said. it looks like the AA bond is a "ONE YEAR INTERNET FIXED RATE BOND" which means that you may be allowed to transfer money by BACS to open the Bond. No details on the AA site yet.

pem2

The only trouble with this current fad/era of fixed rate deposits is how the bank/bs deal with repayment at maturity, which is not always obvious from reading the T&C's when you apply and not all institutions follow the same procedure.. I have just had a BM 6.7 mature on the 28th August but they didn't post a cheque to me until the 5th Sept. Coming up to maturity they informed me to allow up to 10days to receive the cheque. They do not put it electronically into your nominated bank which I believe they easily could do. This loss of interest equates to the real rate being 6.5. Doing these little tricks they are clawing back the table topping rates. Whereas an online one I had with Nationwide maturing on the 11th Sept at a lower rate of 6.5 but because I could pick it up immediately and the rate was in effect 6.5, unfortunately the downside is as yet Nationwide do not send faster payments outside so couldn't benefit from a bank/bs with superior rates.

Nick_C

Saga (also BM) offer the maturity payment into my current account. My account matures on 4/10, they wrote to me early this week, and only offered 6.4% to reinvest for a year!

Mikeyorks

pem2 wrote: »

I have just had a BM 6.7 mature on the 28th August but they didn't post a cheque to me until the 5th Sept.

It helps (assuming you're not re-investing with BM) to have one of their E-Savers ..... and they will drop the matured funds into there on the day of maturity. Doesn't fully cover interest loss if you have to move it to your linked account to 're-deploy' it - but at least it gives you better control?

Just moved mine (it was 6.91% maturing but they were only offering 6.6% postal / 6.7% internet) to Anglo Irish at 7.05%. Big benefit, in the current climate, is their compensation scheme now covers individuals to circa £80k.

I had wondered why BM pulled all their fixed rate deposits from their website several days ago!

stevetodd

Mikeyorks wrote: »

It helps (assuming you're not re-investing with BM) to have one of their E-Savers ..... and they will drop the matured funds into there on the day of maturity. Doesn't fully cover interest loss if you have to move it to your linked account to 're-deploy' it - but at least it gives you better control?

Just moved mine (it was 6.91% maturing but they were only offering 6.6% postal / 6.7% internet) to Anglo Irish at 7.05%. Big benefit, in the current climate, is their compensation scheme now covers individuals to circa £80k.

I had wondered why BM pulled all their fixed rate deposits from their website several days ago!

Ahh that's ok then as I have an e saver with BM, as well as 4 mortgages so I am well covered on the compensation angle (but hopefully that is less of a factor now)

WaltD

Speculator wrote: »

Good news! Looks like Fixed rate savings rates are on the way up.

WEF: 27/9

ONE YEAR INTERNET FIXED RATE BOND: a one year fixed term internet operated account with a minimum investment of £1 paying 7.05% on maturity (6.83% monthly).

Yes, but if you already have close to £35,000 invested with the HBOS Group, you could consider the Post Office's 1-year People's Growth Bond (Issue 6a). It is operated by the Bank of Ireland and also offers 7.05% APR. The minimum investment is £500, but the good news is that it is protected by the Irish government's scheme which guarantees your savings up to ca. £70,000. A leaflet is available at all UK Post Offices.
:T

johnoz

Certainly agree with Mikeyorks about having a BM E-Saver as well. I've had several BM bonds over the years.

Not only is it a pain waiting for the cheque to arrive, then needing to get to a bank, and waiting for the cheque to clear... I had one occasion where no cheque arrived after a week, so I phoned, only to find they'd forgotten to process it!

I always ask for matured funds to go straight into the E-Saver now, which so far has always worked well. Then it's only a few days to transfer it out via BACS yourself.