Fixed rate bond

mike22

Why do building societies always pay higher interests than banks?

What are the disadvantages of fixed bond apart from not being able to make a withdrawals?

gozomark

1. they don't

2. interest rates may go up

mike22

gozomark wrote: »

1. they don't

2. interest rates may go up

Coventry Building Society has a 1 year fixed bond of 3.75% and NET of 3%. ( also other building societies such as Derbyshire)

Which bank is giving higher then this rate?

withnell

ICICI is giving higher

gozomark

Anglo Irish is higher

juicyjude

Yes but at what cost?

Stavros_3

For the sake of 0.15% with ICICI, I wouldn't be chasing rates outside the UK in this global recession. Look at the palava tens of thousands of UK investors have had in getting their money back from the Icesave bank and are still waiting in some cases

withnell

Icesave savers were covered by the icelandic government - ICICI are covered by FSCS 100% up to 50k.

The indian economy is pretty strong at the moment.

Stavros_3

Still couldn't be arsed for the sake of 0.15%

sh856531

When you buy a bond from the likes of Coventry Building Society, do you get the same protection as depositors in a bank? Does the FSCS cover it or is there perhaps some other type of protection? When people talk about those sorts of bonds is it government bonds or corporate bonds?

Thanks all

S

Stavros_3

Its not a bond. Its a fixed rate savings deposit account, for some reason they tend to call them 'Bonds'. Yes they have the full FSCS cover