Advice Required

Trollop

Trollop wrote: »

That's exactly what happened, I rang them up today, and they couldn't find my application, so manually sent out another one, which should get to me within 5 working days.. its gonna be tight to get the application form/cheque back by the 30th... but oh well..

Anyone else want to comment? My only worry is what the interest rates will be in 6 months time and whether there will be any good fixed rate bonds going, when my 6 month fixed rate bond with Birmingham Midshires (if i choose them) matures.

So 6 months for 6.97% or 1 year for 6.6%?

KingL

what's the gross interest rate on the 6 month BM ? Do you pay tax, at what rate?



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Trollop

KingL wrote: »

what's the gross interest rate on the 6 month BM ? Do you pay tax, at what rate?



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The AER for the 6 month BM account is 6.97 or 6.87 gross. I pay tax at 20%.

soulsaver

You are aware that BM are Halifax, BoScotland, SAGA, AA, IF and covered £50k (100kjt) in TOTAL? JIC it helps with your decision?
BTW if you want ICICI by 24th and you're not as easy access a/c holder I don't hold out that much hope yoo'll get through their hoops in a week...
On Custome Focus - in my experience once you're 'in' & can contend with the music, and the accent, the service has improved over early experience - in deed good! :Thumb:
PS You have to put up with a Brummai (well Wolvrampton, actullai) accent with BM, too....:rotfl:

KingL

Then if you go for the 6 month option, you'll need to find somewhere doing 5.2% (gross) for the second 6 month period to make up the same interest as if you had gone with ICICI.

Personally I think that person you spoke to at ICICI has got it wrong and that one way or the other you will end up with their currently advertised 5.75%. To match that, you'd need to get 3.8% for the second 6 months.

FWIW, the last one I bought was ICICI's 3 years (with early access option) just before the last big drop. Can't interest rates rising anytime soon.

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Trollop

KingL wrote: »

Then if you go for the 6 month option, you'll need to find somewhere doing 5.2% (gross) for the second 6 month period to make up the same interest as if you had gone with ICICI.

Personally I think that person you spoke to at ICICI has got it wrong and that one way or the other you will end up with their currently advertised 5.75%. To match that, you'd need to get 3.8% for the second 6 months.

FWIW, the last one I bought was ICICI's 3 years (with early access option) just before the last big drop. Can't interest rates rising anytime soon.

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Thanks for the response, this is probably gonna be a dumb question, but how did you work out the following?:

you'll need to find somewhere doing 5.2% (gross) for the second 6 month period to make up the same interest as if you had gone with ICICI.

In your opinion, do you think it would be reasonable to find this rate 6 months from now? I know its impossible to tell, but I'm just asking for ur take on things as you clearly know alot more than me about these things...

Thanks

KingL

do you think it would be reasonable to find this rate I]5.2% (gross)[/I 6 months from now

I can't see it, no.

but how did you work out ....

With the formula for interest per day, ((1+i)^(1/365.25))-1.
(e.g. from http://forums.moneysavingexpert.com/showpost.html?p=14506183&postcount=15) plus some fannying about in excel. There are probably easier methods.

Trollop

KingL wrote: »

I can't see it, no.

Hrmm, maybe i should have invested in the 6.6% 1 year fixed rate bond with BM then! Oh well, lets see what happens.