Premier Guarantee Issue 2 Manchester BS 5.26% Variable

bristolleedsfan

See Post No 14

Link below kept for Issue 1 applicants

http://www.themanchester.co.uk/mbsnew/savings/content/premier_guarantee.asp

Saver-Rob

After a post from 'flyer' I was made aware of the Manchester Building Society Premier Guarante account.

http://www.themanchester.co.uk/mbsnew/savings/content/premier_guarantee.asp

Paying 5.51%

The interest rate is variable and will be altered at the Society's discretion.
The interest rate is guaranteed to be no less that 5.00% Gross / AER until 30th June 2009. In addition, the interest rate is guaranteed to be no less than 1.50% above Bank Base Rate until 30th June 2010.
Interest is calculated daily and paid annually on 31st December.

So, as per a post in the main Top Instant Access Savings Discussion Area thread, my plan was to...

(1) Deposit an amount (say £10,000).
(2) Sit it out until 30/6/09 when the guarantee expires (and will probably drop to a couple of %)
(3) Withdraw all but £1 (so in my case £9,999) on 1/7/09
(4) Along comes 31/12/09 when the interest is payable - sit back and enjoy 6 months of good interest rate.

I have applied. Anybody else out there who might be interested or who has any comments positive or negative about my plan or the account in general?

Once again thanks to 'flyer' for making me aware of this.

All posts appreciated.

gunnaknow

Yes, I had the same plan. I printed the form from the site but haven't sent it off yet.

Saver-Rob

I completed the online application. I am expecting some forms to arrive in the post for signing too, apparently.

10_66

Saver-Rob wrote: »

(3) Withdraw all but £1 (so in my case £9,999) on 1/7/09

I think you may have to leave £1,000 in as the opening minimum is £1,000. Have sent off an application form and opening cheque to tfr B&B funds, after bristolleedsfan posted about it last week.

Saver-Rob

Ah right yes. I have looked in the T&C and found no mention of a minimum, but I would have more than £1000 in there anyway. I was looking at more like £20,000+.

I will await to hear from them before I move my funds out of my current savings account.

KenC_3

Am I missing something here? Why can you not just close the account on 1/7/09?

Saver-Rob

The interest is payable on 31st December. I dont know about getting the interest early if you close the account.

10_66

KenC wrote: »

Am I missing something here? Why can you not just close the account on 1/7/09?

Yes, there's no reason why you need to keep the account open, as you would receive the interest on closing the account.

Saver-Rob

Well if that is the case (well spotted btw) then thats even better...

KenC_3

10_66 wrote: »

Yes, there's no reason why you need to keep the account open, as you would receive the interest on closing the account.

That was my understanding as well and I have an application form to send off tomorrow so thanks for the confirmation.