West Bromwich new fixed rate

baby_boomer

Steve_xx wrote: »

This is the sort of talk that causes runs on institutions and it really is not helpful

These are hard facts available to anyone who reads the FT. Would you rather that MSE readers, as opposed to the financial elite, didn't know about them?

As I reiterate more than once above - Martin & the government have guaranteed that your money up to 50K with the West Brom is safe. Whether or not you agree that this is the best policy, this is how it is.

I think most MSErs would rather be in possession of more information, rather than less. Why else do we visit?

hotkee

baby_boomer wrote: »

As I reiterate more than once above - Martin & the government have guaranteed that your money up to 50K with the West Brom is safe. Whether or not you agree that this is the best policy, this is how it is.

Are you saying you disagree then?

Seems to me that you do - I didnt even know about PIBs till now - how does one decide at what point something is a bigger risk based upon the interest it pays on the yield from shares.

Looking at this list http://www.thisismoney.co.uk/pibs, are we to conclude that the Kent Reliance is also on the brink?

Steve_xx

baby_boomer wrote: »

These are hard facts available to anyone who reads the FT. Would you rather that MSE readers, as opposed to the financial elite, didn't know about them?

As I reiterate more than once above - Martin & the government have guaranteed that your money up to 50K with the West Brom is safe. Whether or not you agree that this is the best policy, this is how it is.

I think most MSErs would rather be in possession of more information, rather than less. Why else do we visit?

I think that you are right to point out what you have. I think that you are scaremongering when you say "The higher the yield the greater the perceived risk of losing all your dosh". If you keep withing the sole 50k, joint 100k limits then it is not possible for you to lose your money.

theGrinch

Steve_xx wrote: »

No, you've noticed that they have withdrawn Bond 21 and replaced it with Bond 22 on similar terms.

whats the main differences between the two out of interest? I assume the ROI was the same.

baby_boomer

Steve_xx wrote: »

I think that you are scaremongering when you say "The higher the yield the greater the perceived risk of losing all your dosh". If you keep withing the sole 50k, joint 100k limits then it is not possible for you to lose your money.

I was explaining how PIBS work. The whole post was about PIBS as a reflection of how the market views West Brom as an ongoing concern down the line. The higher PIBS yield reflects perceived higher risk for PIBS investors. You could lose all your money in PIBS and./ or they could stop your income tomorrow.

I even finished

baby_boomer wrote: »

our government's guarantee overrides all of the above if you are just putting money in a savings account up to the £50K limit.

Therefore it makes perfect MSE sense to grab the best [fixed] rates at any institution covered by the FSCS, however dire, because we all know it will be rescued by the taxpayer & other savers (on lower rates) if the worst comes to the worst.

Everyone who has read anything on MSE knows about the £50K government protection for savers in most institutions and all building societies.

hotkee wrote: »

Looking at this list http://www.thisismoney.co.uk/pibs, are we to conclude that the Kent Reliance is also on the brink?

Don't confuse the second yield in the right hand column - to call / redemption - with the other yields (the 9% one I chose is a better reflection of how KRBS is perceived). The theoretical 12%/14% is if KRBS opts to buy back its PIBS in 2014/2016 at par - ie 100p - which it presumably won't do since it would make a huge loss on the transaction and it has the option not to.

RayWolfe

baby_boomer wrote: »

Sorry to continue my party pooper role .

........... but you do it so well!

cyclonebri1

Ok unbiased post, have Just short of £40k coming back from Brum Mid !!!!!! very shortly. Needs to move.

Would the WB 1 Year jobby be any less secure????;)

baby_boomer

Guaranteed by HMG. Go for it.

azureblue_2

I need monthly interest to live on so would have to put £50,001.00 in. Aaaagh!! Would I get that £50k back and lose the £1 if all went horribly wrong?

soba

azureblue wrote: »

I need monthly interest to live on so would have to put £50,001.00 in. Aaaagh!! Would I get that £50k back and lose the £1 if all went horribly wrong?

£50,001 not needed for monthly interest. Just pay in £50,000!!

From website

A monthly income option (4.22% gross monthly - 4.30% AER) is also available for balances of £50,000 or over.