1 year or 2 year fixed bond?

D1zzy

DiggerUK wrote: »

Mandyjo,
On a wider point why is this rate so far ahead of the pack? anybody heard anything we should know about NBS.

Is this the start of a trend in savings rates going up? Needs to be watched.

There was comment in the FT today pointing out that that the greatest number of 6/7% deals was on offer in July last year - so they are now maturing. Maybe this is the start of deals to attract in maturing funds

DiggerUK

Mandyjo,

Been BBQing down the allotment and thinking over this NBS A/C.
There is also some chatter on here about Skipton Building Society and NBS, needs to be read.

The only problem I can see with the NBS A/C is the 90 day notice.
If you wanted to take advantage of good rates on any new bonds coming up, I don't think there would be a cat in hells chance of the new bond still being available by the time you got your money out of NBS.

Maybe you should consider putting 80% in NBS and 20% in a holding A/C.

Then, as you moved from the holding A/C to a good bond, simply give NBS 90 days notice so you had funds in 90 days time to invest as and when good bonds came up.
You may decide to hold less than 20% in the holding A/C and rely on a bond like the NBS which allows further deposits after opening.
You would also lose a small ammount in interest. But I would urge you to get yourself about a bit.

The problem people have faced is when institutions merge and you find yourself over 50K deposited in the new institution..

One of my arguments for spreading bonds around is so you don't end up with a long wait for compensation payments if you're all in one place. (think Iceland)

This is an exercise you would only have to do once, even though it is a hassle I would urge you to do it.

musehead

DiggerUK wrote: »

The only problem I can see with the NBS A/C is the 90 day notice.
If you wanted to take advantage of good rates on any new bonds coming up, I don't think there would be a cat in hells chance of the new bond still being available by the time you got your money out of NBS.

You almost certainly won't be able to invest in any one particular bond that comes up because as you say it will no longer be avaliable after 90 days. However if there is a general uptrend in account rates in the next year (or whatever) going beyond 5% then you can submit your notice and grab what is avaliable 3 months later.

D1zzy

musehead wrote: »

You almost certainly won't be able to invest in any one particular bond that comes up because as you say it will no longer be avaliable after 90 days. However if there is a general uptrend in account rates in the next year (or whatever) going beyond 5% then you can submit your notice and grab what is avaliable 3 months later.

My vague plan...
Maintain money in LLoyds vantage accs @ 4% -
If good rates start to appear - use this to pick up a better rate.
Give 90 days notice & transfer from NBS (5%) to LLoyds (4%) - ready for the next better rate.
Al depends on nett rate differentials of course.-;)

DiggerUK

D1zzy wrote: »

My vague plan...
Maintain money in LLoyds vantage accs @ 4% -
If good rates start to appear - use this to pick up a better rate.
Give 90 days notice & transfer from NBS (5%) to LLoyds (4%) - ready for the next better rate.
Al depends on nett rate differentials of course.-;)

"Vague plan" ....my @rse.
Good plan methinks.
4% in holding A/C, 5% in feeder A/C, ?% in new A/C.

Not so D1zzy.

Noble_Savage

DiggerUK wrote: »

Mandyjo,

Been BBQing down the allotment and thinking over this NBS A/C.
There is also some chatter on here about Skipton Building Society and NBS, needs to be read.

Been denied by both NBS and SBS now.