Yorkshire Bank

lectureral

I received this email - the longer term rates seem quite good - anyone any advice on this offer?

Martin Pallett, Managing Partner of Yorkshire Bank, Newcastle FSC has asked me to contact you with a fantastic 4 day window of opportunity from Yorkshire Bank.

Following on from the Bank of England Base Rate cut to 3% on Thursday we are guaranteeing our personal term deposit rates until 17:00pm on Friday 14th November 2008.

Our guaranteed fixed rates are as follows:-

18 months 6.14% gross
2 years 6.23% gross
3 years 6.48% gross

The minimum deposit to take advantage of the offer is £2k. Our account opening procedures are simple and straightforward and there is no need to transfer your full Banking.

Our Group's credit rating with Standard and Poors is AA and our credit outlook has today been upgraded to stable.

If you or any of your colleagues or clients would like to take advantage of the fantastic offer or would like any further information then please contact Chris Middleton or any other member of our team on 0191 211 2820 or 0191 211 2800

blackswan2

applied by phone on Saturday for 1yr fixed at 6%, all seemed good.
Yorkshire Bank is a brand name of Clydesdale Bank which is owned by Bank of Australia ( I think).

Rhymsta

My wife and I have both had fixed rate bonds with Yorkshire Bank and have never had any problems. I've had some great rates which seemed only to be advertised discretely in the branch ie: not in best buy tables.

Note: Yorkshire Bank (along with the Clydesdale) is part of the National Bank of Australia. Sounds safer than Nigeria etc LOL.

gunnaknow

lectureral wrote: »

Our guaranteed fixed rates are as follows:-

18 months 6.14% gross
2 years 6.23% gross
3 years 6.48% gross

Don't forget that that is the gross, not the AER. When the term is longer than a year, the gross becomes larger than the AER. Their AER is closer to 6.05%. This is a good deal. Just remember to compare each bonds AER, not some AER and some gross.

http://www.ybonline.co.uk/personal/savings/term-deposit/

gunnaknow

lectureral wrote: »

Following on from the Bank of England Base Rate cut to 3% on Thursday we are guaranteeing our personal term deposit rates until 17:00pm on Friday 14th November 2008.

Does anyone know if that's also the deadline for which they have to have your form and cheque by?

gunnaknow

gunnaknow wrote: »

Don't forget that that is the gross, not the AER. When the term is longer than a year, the gross becomes larger than the AER. Their AER is closer to 6.05%. This is a good deal. Just remember to compare each bonds AER, not some AER and some gross.

http://www.ybonline.co.uk/personal/savings/term-deposit/

Don't listen to me though, I don't really know that much. What's confusing is that Clydesdale, part of the same banking group, offers the same deals as Yorkshire but their stated gross figures are the same as the AER. Compare the two below. I think Yorkshire might be playing with the figures to make them look even more appealing. That doesn't change the fact that the lower 6.05% is still an excellent deal.

http://www.cbonline.co.uk/personal/savings/term-deposit/
http://www.ybonline.co.uk/personal/savings/term-deposit/

gunnaknow

Ok guys, I called Clydesdale, which uses the same numner as Yorkshire and uses the same offices. I asked about the discrepancy between the two different gross rates and he told me that it was because Yorkshire's gross figure is worked over the full term and Clydesdale's is worked out per annum. He said that the end result is a difference of about £1 per £20,000 over 2 years. There's no difference then, the 6.05% AER is the true figure.

You'll be interested to hear that he told me that so long as you apply by telephone by friday, they'll send you the form and you are given until Nov 25th to get the form and cheque to them. I asked whether I should print the form and send it instead but he said that you only have 5 days (working days?) after the friday deadline in which to get the form in via this method. So you have until the 19th or 21st to get printed forms and cheques into them, depending on whether they meant 5 days, or 5 working days. You have until the 25th to get forms in if you apply for a form by phone.

I went ahead and applied by phone and he said that the form should be with me within two days. He did ask me for the ammount that I wished to invest, so I asked him whether I could change the ammount when I received the forms. He said that it's not a problem and that you have to draw a line through the printed figure on the form and write the new ammount beside it, along with you initials. I presume that everything that he told me applied to the yorkshire bank aswel, although you might want to call and check on that.

alanq

2.8 If we do not receive your instructions at least 3 Business Days before the Maturity Date, the Maturity Amount will be paid into another Term Deposit account in your name for a term equal in length to the Fixed Term (or a one year term, if that is less than the Fixed Term) at the interest rate applicable to such term deposit at the Maturity Date. (Note: the terms and conditions which may apply to that term deposit
will be advised to you when any certificate for that term deposit is issued).

I much prefer it if money is transferred to an instant access account on maturity or at least one is given a few weeks of penalty free access after maturity before any automatic reinvestment takes place. With YB bond one has to decide and submit instructions well in advance of maturity without knowing what rates will be available elsewhere at the time of maturity. There seems to be a risk if one forgets or the instructions get lost.