My savings in B&B!

julio69

Evening. I have 35,000 GBP in a one yr fixed rate bond account with B&B International. Cos it's in Isle of Man, I'm only covered for 20,000, and that's only 75% of that! Should I pay the 90 days' penalty and get my money out of there? Many thanks in advance -very worried.

poppy10_2

How much will the penalty be?

Reaper

Maybe the bond you have is different terms, but I just looked at their web site and the current 1 year fixed bond offering (issue 45) allows no withdrawals at all during the year.

Are you sure you have the option of withdrawing and paying a penalty?

fatpig_2

julio69 wrote: »

Evening. I have 35,000 GBP in a one yr fixed rate bond account with B&B International. Cos it's in Isle of Man, I'm only covered for 20,000, and that's only 75% of that! Should I pay the 90 days' penalty and get my money out of there? Many thanks in advance -very worried.

No, don't panic, leave it there.

From Financial times:

Alistair Darling, chancellor of the exchequer (finance minister), said last year after the run on Northern Rock that the government would guarantee every penny of savers’ money, not just at the Newcastle lender but at every other bank.

Count_Dante

fatpig wrote: »

No, don't panic, leave it there.

From Financial times:

Alistair Darling, chancellor of the exchequer (finance minister), said last year after the run on Northern Rock that the government would guarantee every penny of savers’ money, not just at the Newcastle lender but at every other bank.

This guarantee exists only in theory only. There is no way the government can possibly pay back every penny of savers money at every bank. That said, the government would not allow any bank to fail right now because of the possibility of a run on all other banks. As far as I'm concerned the OPs money is safe.

sabretoothtigger

Even the worst predictions dont have every bank going bust

fatpig_2

Yes, agreed. There's a bit too much scaremongering at the moment. If the government 'saved' NRock then how could they not save B&B in the worst case scenario?

julio69

Thanks guys to all. Still confused, as mixed bag of replies, I suppose no-one can give a guaranteed answer. In reply to poppy10, I've worked out that the penalty would be about 7,000GBP. In reply to reaper, the bond I have is issue 44, which does give you the option of withdrawing with a penalty. More comments greatly appreciated.

ad44downey

No-one who had savings with Northern Rock lost a penny. Neither will anyone who has savings with Bradford and Bingley

julio69

Didn't know that! Makes me feel so much better. Thanks so much.

freddysmith

WOW you say £7000 thats 20% of your money. Don't fall for the scaremongers its a lot of money to waste. At the end of the term put your money into accounts with better Terms and Conditions and giving yourself more flexability.