Principality Building Society - 2 Year bond @ 4 Percent, What do you think?

welshmoneylover

I live in south wales and yes there are a lot of NEETs. However, there are an awful lot of people who work and taking into account our lower costs of living down here, there is an awful lot of people with pots of money swishing about savings accounts.

I've been with the principality for years and they are regarded as sound as a pound!

socrates

Interesting thread - one person quoting facts the others sentiment and hearsay.

I really do not know who is right.

I look forward to more posts on this

asbokid

More fears in today's press that the Principality Building Society is doomed..

To abuse the famous Welsh joke: "And there it was - gone!"

From the Sunday Times, April 5:

"Building societies risk losing their reputation as safe havens following the collapse of Dunfermline, Scotland’s biggest society, last week.

"Analysts said the sector remained robust, though there could be more mergers. Principality and West Bromwich are the most vulnerable to being swallowed up by larger rivals, said rating agency Fitch.

"Matthew Taylor, building society analyst at Fitch, said these societies tended to have a higher level of “specialist lending”, such as investments in commercial, buy-to-let and sub-prime mortgages combined with “weak capital reserves”.

"One of the biggest concerns when building societies merge is that savers who have accounts with both could lose their protection under the Financial Services Compensation Scheme (FSCS).

"However, the Financial Services Authority (FSA) allowed Nationwide and Dunfermline to retain separate limits — meaning members continue to be protected up to £50,000 with each society — and it is likely to do the same for other mergers.

"The uncertainty has nevertheless led to a search for other options

asbokid

From today's Sunday Times.....

"Analysts said the sector remained robust, though there could be more mergers. Principality and West Bromwich are the most vulnerable to being swallowed up by larger rivals, said rating agency Fitch.

"Matthew Taylor, building society analyst at Fitch, said these societies tended to have a higher level of “specialist lending”, such as investments in commercial, buy-to-let and sub-prime mortgages combined with “weak capital reserves”

Jeff Prestridge from the Mail on Sunday fuels fears for the Principality....

Lenders in fear of new credit ratings as mutuals revealed to be 'more vulnerable' than big banks

Top credit rating agency Moody's is poised to re-rate the UK's biggest banks and building societies. Downgrades are likely, curbing their options for borrowing to fund growth.

After the dramatic collapse of Dunfermline Building Society, some of the top ten mutuals could suffer the harshest re-ratings, threatening their survival as independent businesses.

The analysis could be published as early as this week. Societies with serious exposure to commercial property or toxic mortgage assets - sub-prime lending - are the most vulnerable.

oldfella

I wouldnt put any money into a fixed term bond at the moment. Firstly rates are too low to make it worth it. Who knows what rates will be in a year or so. Marginal short term benefits are too small.

Secondly concern about inability to withdraw considering current difficult conditions that might affect me, or the bank/building society.

The fact that the pages of the money papers are full of fixed bond offers just confirms my feeling that they are wholly in their benefit.