Prinipality BS to launch 5 year bond paying 5.30%

Arthurian

Slightly scary part of BM terms and conditions:-
"We may limit the amount which may be withdrawn from or paid into your account if we think that it is necessary in order to protect our business interests as a whole".

Baldur

Arthurian wrote: »

Slightly scary part of BM terms and conditions:-
"We may limit the amount which may be withdrawn from or paid into your account if we think that it is necessary in order to protect our business interests as a whole".

You will probably find a similar clause in most, if not all, banks' and building societies' Ts & Cs - try Googling "We may limit the amount which may be withdrawn from or paid into your account", which brings up about 234,000 hits.

Arthurian

Thanks, Baldur.

Edit: A quick stroll through some T&Cs later, here's a few selections of small print:-

YBS: "We can restrict at any time the amount which can be withdrawn from an account if:.........Circumstances exist which lead us reasonably to believe our financial stability may be at risk"

Egg: "We can restrict at any time the amount which can be withdrawn from your account. We will only do this if:"...............(amongst other things)..........."circumstances beyond our reasonable control prevent us from offering a normal service (such as in the event of terrorist threat, computer systems failure or strikes)."

Barclays: I couldn't find any such restrictive clauses, but I could be wrong. DYOR.

Tesco: Again, I couldn't spot anything other than they reserve the right to change the T&Cs,

Investec: "The Bank will not be liable for any loss due to:"............(amongst other things)........."failure to carry out instructions at the right time or at all;" and "for any other valid reason."

I suppose nothing is ever totally guaranteed, but maybe it's a case of choosing the least worst option for your own choice of risk. BM's clause seems a particularly cheeky way of saying "We might not give you your money back if we decide WE need it instead."

TCA

premierfella wrote: »

TCA

I think you may have misread those terms. Withdrawals on BM fixed rate bonds with a term of less than 2 years do not permit withdrawals.

However, as the bond being discussed is a five year term bond, withdrawals are permitted at any time during the 5 years, but are subject to 90 days loss of interest on the withdrawn amount.

FWIW, I agree that this bond looks attractive given withdrawals at only 90 days interest cost (unless the interest rate is very close to similar no-withdrawal fixed rate bonds I usually find that any greater interest cost on withdrawals is, for me, balanced out by the higher fixed interest rate on no-withdrawal bonds.)

Thanks pf. I have indeed misread the terms re withdrawal. Cheers for pointing out my misunderstanding.

TCA

I posted on another thread re the disappearance of the BM 5 Year Fixed Bond (5.15%) from Moneyfacts long term fixed rate bond comparison page. Does anyone read anything into this when the bond is still available through the BM website and their 3 year fixed offering does appear on Moneyfacts?