£50k with Northern Rock 6.9% - ends Jan, move now?

BigJonnyB

I have £50,000 saved in a Northern Rock account. It is the 6.9% fixed rate access bond (issue 1) which permits withdrawls (or account closure) without any penalty.

The rate ends on January 19th, and I am starting to wonder whether there will be any decent rates around then. I am considering withdrawing the lot, and moving it to a new 1 yr fixed rate account - hopefully there will still be something paying around 6.5% ish. Obviously I'll get less in the next couple of months, but it might work out better over the year as come January, I could be looking at 5% or so.

Any thoughts on this? My only other thought would be to put some of the 50k into an accessable account, and 'drip feed' some regular savings. Is this worth the hassle?

Thanks for any help,

JB

opinions4u

Birmingham Midshires might be the place to go with 6.6% fixed for a year (no access) or 6.4% fixed for a year (4 withdrawals allowed).

http://www.askbm.co.uk/savings/t/easy/intro.asp

Your thinking makes sense to me and I'd jump ship quickly if I were you.

But we don't know exactly how far fixed rates are going to fall - so it is possible that following this advice won't work. I think it will though.

apt

I've found BM/AA rather slow at opening accounts and struggling to meet current demand. You could have £50,000 in limbo for a few weeks. There's also a risk the 6.6%/6.4% is withdrawn before you can open an account. Another alternative is to open a Halifax Guaranteed Saver Reward with £2500 (Halifax current account also needed). That would allow you to keep the bulk of your money in the excellent NR 6.9% account for the full term, because at worst you'll have a guaranteed 6.0% from the Halifax to fall back on. And as the account will be up and running there will be no delay in transferring your funds. That also gives you the option to go elsewhere if, contrary to expectations, a good alternative turns up in January.

moneylover

BigJonnyB wrote: »

I have £50,000 saved in a Northern Rock account. It is the 6.9% fixed rate access bond (issue 1) which permits withdrawls (or account closure) without any penalty.

The rate ends on January 19th, and I am starting to wonder whether there will be any decent rates around then. I am considering withdrawing the lot, and moving it to a new 1 yr fixed rate account - hopefully there will still be something paying around 6.5% ish. Obviously I'll get less in the next couple of months, but it might work out better over the year as come January, I could be looking at 5% or so.

Any thoughts on this? My only other thought would be to put some of the 50k into an accessable account, and 'drip feed' some regular savings. Is this worth the hassle?

Thanks for any help,

JB

I think its an excellent idea to move the money, I hadnt realised you could and I also have a large sum maturing on19 Jan
All I have is a yellow bit of paper that is the bond, annoyingly I dont seem to have kept terms and conditons and presume they wont be on the website now. Can someone tell me how to take money out and you do get the full rate of interest up to date of taking money? I wonder how long it takes?

Many thanks

knights

moneylover wrote: »

Can someone tell me how to take money out and you do get the full rate of interest up to date of taking money? I wonder how long it takes?

Many thanks

I posted a letter to them on a Sunday and I received the cheque on the following Wednesday morning.

mary

I've withdrawn mine over the weekend and gone with SAGA, so it will give it a new lease of life at 6.85%, which is now closed. If you wait until Jan 20th, the rates will probably be even more dismal. so better to move now.

ATF101

I’m in a similar position, got a NR Jan ’09 bond.

A couple of weeks back I applied on line for a ’SAGA 50 plus’ 6.85% A/C, then gave up waiting and put some money into the Coventry Poppy Bond. Then today, guess what, my application from SAGA turns up in the post. Contacted them and they will hold the original rate if I return my application by the 30th November.
So my challenge is to get my NR cash shifted by the end of November. From other user experiences do you think this is feasible.

BigJonnyB

I sent a letter off yesterday, had a phonecall today to say that my withdrawal will be processed and sent out by end of business today. Thanks for the advice - just decided to get it fixed in now, even if the rate is lower, as come January it'll probably be lower still.

moneylover - it is a postal only account, so if you write to them they'll send you your balance (or whatever amount of it you specify). There is no penalty for doing this - no loss of interest etc.

JB

ATF101

BigJonnyB wrote: »

I sent a letter off yesterday, had a phonecall today to say that my withdrawal will be processed and sent out by end of business today. Thanks for the advice - just decided to get it fixed in now, even if the rate is lower, as come January it'll probably be lower still.
JB

Thank you JB. I am now on the case.

buildrum

claered mine out too.went into BM,Coventry and BB.All these bonds now closed though i'm afraid!

mary

ATF101 wrote: »

I’m in a similar position, got a NR Jan ’09 bond.

A couple of weeks back I applied on line for a ’SAGA 50 plus’ 6.85% A/C, then gave up waiting and put some money into the Coventry Poppy Bond. Then today, guess what, my application from SAGA turns up in the post. Contacted them and they will hold the original rate if I return my application by the 30th November.
So my challenge is to get my NR cash shifted by the end of November. From other user experiences do you think this is feasible.

Sent my withdrawal notice off at the weekend, would have arrived Monday, today got my cheque for £8K. I did ring them before hand to see what the turn around was, more or less, they said. Previous occasion when I drew some more, it was the same next day turnaround.