Close Brothers 7% 1 year Bond ends 10 Nov

Blackdog

The cheque has to arrive by Monday so therefore the account you are drawing the money from has to have cleared funds by Weds. They are easy to find near Liverpool Street Station if you are hand delivering your application on Monday.

cepheus

Are you saying the cheque is likely to be processed within 2 days? doesn't it normally take much longer?

Doc_N

cepheus wrote: »

Are you saying the cheque is likely to be processed within 2 days? doesn't it normally take much longer?

No - it would normally hit your account two days after being presented. If they use a quicker method (unusual but possible) it could be sooner.

oshoshitzu

HankMcSpank wrote: »

No I don't...but that's not the point. Do you really want all the hassle of having to submit an FSA compensation claim....the anxious wait blah, blah.

They're operating in a sector that's in absolute tatters right now...it doesn't surprise me they need to firm up their finances *quick*.

There seems something magical to savers about firms offering 7% return (even more so after today's rate cut), but they're offering that type of rate because they're desperate.

Who do you think is a safer alternative?

Doc_N

oshoshitzu wrote: »

Who do you think is a safer alternative?

As of now there is no safer alternative offering anywhere near 7%. If this bank fails, there is the FSCS, and although there may be a slight delay in getting paid, the claim procedure is likely to be pretty straightforward (as it is for Icesave) and the risk is removed completely. Whether it's right to remove all the risk is another matter entirely.

Redknapp

In my rush to send everything off on Friday I sent a cheque for 50k forgetting the interest after a year if things go tits up. Doubt there is any way to change that now.

Doc_N

Redknapp wrote: »

In my rush to send everything off on Friday I sent a cheque for 50k forgetting the interest after a year if things go tits up. Doubt there is any way to change that now.

I think you'll find that the interest is also covered by the FSCS.

Redknapp

You sure mate? I looked on the icesave thread above and it sounds like it is but could not find anything on the FSCS website. I am thinking on driving down and giving them another cheque if its not the case.

Doc_N

Redknapp wrote: »

You sure mate? I looked on the icesave thread above and it sounds like it is but could not find anything on the FSCS website. I am thinking on driving down and giving them another cheque if its not the case.

Here's an extract from the Icesave email from the FSCS, which I hope will help:

For fixed rate savings account holders, Icesave offered a range of accounts which are not repayable in full before their maturity (in some cases for up to three years). If you wish, you will be able to use the same electronic payment process to be paid the principal sum plus interest on that sum up to and including 7 October 2008. In other words, you do not have to wait until the end of the fixed term to have your money back. As above, payment will be made to your selected nominated account. On the other hand, if you prefer to wait until the end of the fixed term, and receive interest which would have been due at maturity, the electronic process option is not available to you. However, you should still log on to the website and tick the appropriate box to confirm that this is your wish. At that time, we will be notified that you wish to wait until the end of the fixed term and we will then send you an application form to complete and return to the FSCS. As described above, this process will be slower, although we aim to complete this process so far as possible within 6 weeks of receipt of a completed application form, with payment following the maturity date of the account. You should also be aware that if you hold a fixed rate savings account that pays interest on a monthly, quarterly, or annual basis, and you decide to hold that account until maturity, you will not be paid any interest prior to maturity.

geosaver

Doc_N wrote: »

Here's an extract from the Icesave email from the FSCS, which I hope will help:

For fixed rate savings account holders, Icesave offered a range of accounts which are not repayable in full before their maturity (in some cases for up to three years). If you wish, you will be able to use the same electronic payment process to be paid the principal sum plus interest on that sum up to and including 7 October 2008. In other words, you do not have to wait until the end of the fixed term to have your money back. As above, payment will be made to your selected nominated account. On the other hand, if you prefer to wait until the end of the fixed term, and receive interest which would have been due at maturity, the electronic process option is not available to you. However, you should still log on to the website and tick the appropriate box to confirm that this is your wish. At that time, we will be notified that you wish to wait until the end of the fixed term and we will then send you an application form to complete and return to the FSCS. As described above, this process will be slower, although we aim to complete this process so far as possible within 6 weeks of receipt of a completed application form, with payment following the maturity date of the account. You should also be aware that if you hold a fixed rate savings account that pays interest on a monthly, quarterly, or annual basis, and you decide to hold that account until maturity, you will not be paid any interest prior to maturity.

But isn't Icesave a special case? The FSCS is compensating for the whole amount in the case of Icesave, not just the first 50K. In a 'normal' compensation case, the situation might be different.