Icesave 6 Month Bond matures in January

luvpump

Hi
There seems to be conflicting advise on this, should i leave it in until it matures ?? or activate the claime which came through today ??

isofa

What rate is the "bond"?

luvpump

Hi, It was the 7% rate set up in late august ..

rosebud666

Remember you lose all the interest from the 7th October if you take it out now. I could have got 7% elsewhere but decided it was not worth losing £380 approx.

luvpump

well i have 9k in there, so does that mean its best to wait till it matures in january

KingL

It's borderline for you, depending on how quickly FSCS send out and process the paper claims and whether your term expires at the beginning or end of Jan

case 1) you choose the electronic option now: you will lose about 7 weeks interest

case 2) you choose the manual option, FSCS send out the paperwork on Dec 5th then take their (max predicted) 6 weeks to process the returned paperwork and your bond matures at the beginning of Jan: you will lose about 4 weeks interest

case 3) Same scenario as 2, but your bond matures at the end of Jan: You will lose no interest.

Case 2/3 are probably the most likely scenarios timing-wise. If the FSCS are faster at sending out /processing the paperwork the better it looks for you stay on and use the paper method.

Obviously, you will need to find somewhere else with that has a decent rate to resave the capital in. This is not factored into the above. Obviously you will have to offset the 'weeks lost interest' above against the lower interest rates you may find in Jan vs Dec.



Bottom line. For your circumstances, it's too close to call with any certainty due to the unknowns about how quickly the FSCS will process the paperwork.


p.s. Of course, you realise that nobody gives 'advice' on this forum, just opinions.

luvpump

Thanks that opinion .. I will have to weigh my options up carefully, but I am thinking saving rates will tank in the next couple of months, so may want to fix them for a longer term if i can...