West Bromwich new fixed rate

cepheus

It was difficult to miss this, but I have now sent off for the 2 year bond in the interim period! However, after noting the forecast in inflation during the budget (was it -3% for RPI?) perhaps the 2 year bond is a better deal after all?

I wonder if this is why they reintroduced the 1 year bond, because their answerphone before the budget was very clear, it had been withdrawn.

SnowMan

I've posted off my application and cheque for the 31/5/10 maturing 4.3% bond today so likely to reach them tomorrow.

Can any of the early applicants give me any idea when I can expect the cheque to be cashed?

Thanks in advance.

hotkee

Snowman, I applied on 17th, had a letter back from them on 22nd with confirmation of investment certiifcate.

My cheque was dated 22nd deliberately as I needed to move money from other accounts into a halifax account in order to write out cheque.

But I think they will take the money within 2-3 working days of the date of the cheque which in my case probably means its going through the clearing process.

ScottySmog

Hope I'm correct in this but the 1 year bond currently available is the E-Bond 22 - still paying 4.3% gross. The previous 1 year bond (E-Bond 21) was the one that was withdrawn. The 2 year bond (E-Bond 20) is still available as far as I can tell from their website.

Posted my application a few minutes ago so hope it's successful!

baby_boomer

How perverse and bizarre that we could all be putting our money the way of the next Dunfermline BS.

It's hardly good practice - funding the institutions that face annihilation even if we are encouraged to do so by HM government and Martin.

It will probably delay the recovery until 2030 .

RayWolfe

BB I know your following of the Scottish BS (like the Scottish play don't mention the name) has been immaculate and I know that WB is not the healthiest plant in the desert, but what makes you give such a bold claim?

baby_boomer

I did say "could be".

It we were only prepared to put money in secure institutions, none of us would have invested a penny in West Brom. It's the government that encourages us to invest in crap.

My earlier post was based on the fact that West Brom was expected to post a loss in 2009 as a result of its commercial loans quite some time ago - and the commercial loans haven't got any better in the meantime.

BTW the real Scottish BS - not the other one - has had a solid 2008 .

RayWolfe wrote: »

WB is not the healthiest plant in the desert,

What a well chosen phrase.

neilsedaka

SnowMan wrote: »

I've posted off my application and cheque for the 31/5/10 maturing 4.3% bond today so likely to reach them tomorrow.

Can any of the early applicants give me any idea when I can expect the cheque to be cashed?

I received this email from West Bromwich today.

This email provides confirmation that we have received your application documents.

Our aim is to deposit funds within 2 working days of receiving your application. Interest is earned from the 2nd working day following the deposit of your funds.

Due to a high level of interest in our current account range, it may take us up to 7 working days to process your application, so please allow 10 working days to hear from us.

Please note that we will backdate interest in accordance with the above if a delay occurs, with the exception of applications where we require additional identification from you. In these circumstances, we will aim to deposit funds within 2 working days of receiving satisfactory identification and not the date of the original receipt of your funds.

p.drewello

From thisismoney.com:


West Bromwich - the background
West Bromwich, the UK's ninth largest building society, vastly extended its buy-to-let and commercial lending in the boom years and this eventually affected analysts' views of its stability.



West Brom's results for the first half of 2008 were only a third of the corresponding period in 2007 and it is believed these will fall to a full-year loss when the results are published in Spring 2009. These will be published on this part of the West Brom website.



However, even though risks to the society have increased as house prices have fallen, it continues to have a strong funding base from members' deposits.
Following the worst phase of society said: 'The safety and security of our members' money has, and always will be, our No.1 priority. The West Brom is funded predominantly by retail savings and attracted record levels of inflow retail savings of more than £1bn in the past year. We are committed to remaining as a strong, confident and independent mutual.'




Important events

• West Brom was one of seven building societies to be downgraded by credit rating agency Moody's in April 2009.

• News emerged in December 2008 that it is to axe more than 150 jobs, signalling it may not emerge from the credit crunch unscathed.


• Ratings agency Fitch changed the outlook of the society from 'stable' to 'negative' in November due to falling house prices and rising unemployment, which is expected to weaken its asset quality. West Bromwich's high exposure to buy-to-let mortgages is a particular concern to analysts.




Tier one capital ratio for West Bromwich: 9.8% (June 2008, latest available)
- How tier one ratios signify bank strength
- Jargon buster: Tier one capital ratios



Fitch rating West Bromwich: A- (Nov 24: outlook - negative)
- Read our explanation and disclaimer for these ratings

• This guide was created on 2 October 2008 and is updated as events dictate.

Steve_xx

So long as you maintain a sole balance of less than 50k, or in the case of a joint account 100k, then if it all goes wrong then the FSCS will compensate you.