London Scottish high interest bond renewal ?

Rhino666

I have a one year high interest bond with the London Scottish bank that matures soon. They have offered me a one year reinvestment at 7.00 % gross which is very good.

This bank seems to be struggling at the moment and the share price is miserable. What do you think I should do ?

LardyCake

They are covered by the FSCS, so as long as you keep below £50,000, your money is safe. Only you can decide, but 7% is a very good rate!

Sillychuckie

My letter arrived today...
and they are STILL offering 7% AER for another 1 year.
Not sure why they are being so generous with interest rates being so much lower, but I'll happily accept the offer thank you very much.
Shame they aren't allowing us to top it up with a bit more. Will just reinvest the lot for another year.
It is below the FSCS protected amount, so no reason why not.

Well done London Scottish Bank, and thank you.

SC.

bristolleedsfan

Sillychuckie wrote: »

Not sure why they are being so generous with interest rates being so much lower,


SC.

http://www.moneymarketing.co.uk/cgi-bin/item.cgi?id=175709&d=340&h=341&f=342

Sillychuckie

Thanks for that.
Oh well - I'm protected under FSCS, so I may as well let it continue for another year. Shame they won't let us put more in. You think they would if they need the money so badly.

bristolleedsfan

SillyChuckie now has all the answers.

http://www.ftadviser.com/FinancialAdviser/Mortgages/Lenders/News/article/20081201/d1d57d36-bf88-11dd-a1ae-00144f2af8e8/FTA-London-180-EAH.jsp

Perhaps all the London Scottish threads can be merged.

earlgrey_3

And importantly, the government is guaranteeing all retail deposits above the £50k FSCS limit.

evenasus

earlgrey wrote: »

And importantly, the government is guaranteeing all retail deposits above the £50k FSCS limit.

What with this and the Icesave compensation payout, why are we bothering to spread money around to keep within the £50K guaranteed amount?

earlgrey_3

evenasus wrote: »

What with this and the Icesave compensation payout, why are we bothering to spread money around to keep within the £50K guaranteed amount?

After having compensated savers in a foreign bank would be politically impossible not to do the same for a British bank. I can't foresee any circumstances where that would happen so do have well above the limit in a couple of accounts. But these are strange times so best for peeps to do what makes them feel comfortable. No point losing sleep over it.