AA fixed 5 year 5.15%

ivavoucher

With my AA 12 months fixed (7.21%) saver account about to mature the AA have written to me and included the rate for 5 year fixed at 5.15% APR.

90 days loss of intrest on withrawals.

Sceptic001

Did they offer you any shorter terms?

Given that you can withdraw (subject to 90 days loss of interest), 5.15% is not bad if you expect not to need the money in that time. It is the same rate offered by Birmingham Midshires (also part of the Bank of Scotland Group) http://www.askbm.co.uk/savings/p/fixed/product.asp?id=302

noh

I got the same letter.
They were offering the 5year @ 5.15% and a 2year @ 4.35%

The odd thing is that the 5 year fix doesn't show on their website only the 2 year.

http://www.theaa.com/savings/fixed-rate-savings-accounts-products.html

Stompa

noh wrote: »

The odd thing is that the 5 year fix doesn't show on their website only the 2 year.

I noticed that too. I'm pretty sure it was there a few days ago.

I think the AA accounts are handled by Birmingham Midshires, and their 5 year FTD seems to have just disappeared too.

noh

Yes they are run by BM.
The BM website has a 5 year fixed but it is postal access only not internet.

Stompa

noh wrote: »

Yes they are run by BM.
The BM website has a 5 year fixed but it is postal access only not internet.

Perhaps I'm wrong, but I thought they had a 5 year internet FTD too.

opinions4u

BM 5 year fixed term postal account at 5.15% linky.

TCA

I see the BM 5 year fixed postal (5.15%) has disappeared from the Moneyfacts Long Term Bonds comparison page. Is this significant or does it just mean that BM aren't paying to be included any more? The account still looks open for new business via their website.

Edited to say that their 3 year bond fixed at 4.55% still appears on Moneyfacts. Strange one?

slinga

Combining two threads I suppose but I'm considering putting another £20k into an AA account bringing my total in the AA to about £70k, well over the Gov failsafe limit, which may or may not be increased.
If there is a 5%+ interest rate I'd be very tempted to go for that with or without the Gov failsafe.

Is that stupid or not?

Sceptic001

slinga wrote: »

Combining two threads I suppose but I'm considering putting another £20k into an AA account bringing my total in the AA to about £70k, well over the Gov failsafe limit, which may or may not be increased.
If there is a 5%+ interest rate I'd be very tempted to go for that with or without the Gov failsafe.

Is that stupid or not?

Why take the risk unless you have already deposited £50k in each of the several other 5%+ 5 year fixed term accounts currently available?

soulsaver

slinga wrote: »

Combining two threads I suppose but I'm considering putting another £20k into an AA account bringing my total in the AA to about £70k, well over the Gov failsafe limit, which may or may not be increased.
If there is a 5%+ interest rate I'd be very tempted to go for that with or without the Gov failsafe.
Is that stupid or not?

I feel pretty safe in it short term (I have exceded the limit by along way with the Halifax (same group, AA is Birm Mids)) until November when my 6% reward saver matures.
However Sceptic's advice is sound: Avoid the risk first & fill up to the FSCS limits on other fivers, where the notice/penalty suits your needs.