Principality BS 4year bond paying 5.10%

Steve_xx

Principality Building Society will launch a 4year bond paying 5.10% on 8 October:

4 YEAR DIRECT FIXED RATE BOND Issue 154.

A four year fixed term postal or internet operated account with a minimum investment of £1K paying 5.10% yearly (4.98% monthly).

No further additions. Earlier access on closure only subject to 360 day loss of interest.

Link: Click here

theGrinch

I would be cautious here. Its a long time to fixed funds or face 360 days loss of interest especially in an environment where the next movement of rates is up in what experienced commentators deem an inflationary future of an increasing money supply.

Gorgeous_George

I wouldn't tie my money up for two years at 5.1% never mind four.

The 360 days loss of interest is a joke.

This deal is designed for the headline rate and nothing else.

GG

digannio

I would much rather take out a five-year one with Birmingham Mid (5.15%)or Saga (5%) that let you withdraw, subject to the loss of 90 days interest (even though in the case of Birmingham you have to leave it for two years before withdrawals are allowed). The loss of one year's interest in this case is too punitive and restrictive when there are other options around that give you a freer hand in the future.

Ifts

digannio wrote: »

I would much rather take out a five-year one with Birmingham Mid (5.15%)or Saga (5%) that let you withdraw, subject to the loss of 90 days interest (even though in the case of Birmingham you have to leave it for two years before withdrawals are allowed).

Are you sure that is correct? Because after speaking to Birmingham Midshires, I was told you can make withdrawals (subject to 90 days loss of interest on the amount withdrawn) on their 2,3 and 5 year fixed rate bonds at any time within the fixed rate term.

Can I make a withdrawal from this account?
If the Fixed Rate Bond is below 2 years no withdrawals are allowed. For Fixed Rate Bonds that are 2 years and over, you can make withdrawals subject to 90 days loss of interest on the amount withdrawn.

Was told that the above withdrawal restriction only applies to any of their bonds taken out for less than the 2 year term, i.e. a 12 or 18 month bond

kostigovs

Gorgeous_George wrote: »

I wouldn't tie my money up for two years at 5.1% never mind four.

The 360 days loss of interest is a joke.

This deal is designed for the headline rate and nothing else.

GG

If offered I would in a flash

fullstop

kostigovs wrote: »

If offered I would in a flash

Same here, 5.1% for 2 years they would be swamped with punters.

digannio

Ifts, you are right, just a bit of confusion over the wording. And the offer is one of the best around at the moment, given the rate and degree of flexibility it offers.

ykloke

Supposed to have been launched yesterday, but still no sign of it on the Principality BS website.

Tried googling it with the issue number 154, but no joy either.

Baldur

ykloke wrote: »

Supposed to have been launched yesterday, but still no sign of it on the Principality BS website.

Tried googling it with the issue number 154, but no joy either.

The search box on the Principality website brings up http://www.principality.co.uk/default.aspx?page=1654

ykloke

Thanks, that was brilliantly well-hidden by the Principality BS. Perhaps they don't want any casual customer finding the rate!