Saga fixed rate withdraw

home_alone

I see saga are withdrawing most of their current fixed rate savings accounts
5 YEAR FIXED RATE SAVINGS ACCOUNT withdrawn w.e.f. 19.10.09, 1 YEAR INTERNET FIXED RATE SAVINGS ACCOUNT withdrawn w.e.f. 26.10.09 and 1 YEAR POST/TELEPHONE FIXED RATE SAVINGS ACCOUNT launched w.e.f. 27.10.09, 3 YEAR FIXED RATE SAVINGS ACCOUNT will be withdrawn w.e.f. 30.10.09 and 2 YEAR FIXED RATE SAVINGS ACCOUNT will be withdrawn and replaced w.e.f. 30.10.09.
Just as my 1 year fixed comes to an end.

gary

D1zzy

Try NS&I @3.95% if you want another 1 year fix - 100% guarantee

savetilibleed

home_alone wrote: »

I see saga are withdrawing most of their current fixed rate savings accounts
5 YEAR FIXED RATE SAVINGS ACCOUNT withdrawn w.e.f. 19.10.09, 1 YEAR INTERNET FIXED RATE SAVINGS ACCOUNT withdrawn w.e.f. 26.10.09 and 1 YEAR POST/TELEPHONE FIXED RATE SAVINGS ACCOUNT launched w.e.f. 27.10.09, 3 YEAR FIXED RATE SAVINGS ACCOUNT will be withdrawn w.e.f. 30.10.09 and 2 YEAR FIXED RATE SAVINGS ACCOUNT will be withdrawn and replaced w.e.f. 30.10.09.
Just as my 1 year fixed comes to an end.

gary

As we both have bonds with Saga soon to mature, we have been offered three reinvestment offers.
14 months at 3.25% AER
2 Years at 4.35% AER
5 years at 5.10% AER
All with monthly interest options
Additionally all but the 14 month account can be accessed if required on loss of 90 days interest on the amount withdrawn.

So we have decided after much comparison that, although 5 years is an awful long time, to go for that, and even top one up a bit. We know we can get to it if we need, albeit with a loss. But I think interest will stay low for a good time yet.

D1zzy

savetilibleed wrote: »

As we both have bonds with Saga soon to mature, we have been offered three reinvestment offers.
14 months at 3.25% AER
2 Years at 4.35% AER
5 years at 5.10% AER
All with monthly interest options
Additionally all but the 14 month account can be accessed if required on loss of 90 days interest on the amount withdrawn.

So we have decided after much comparison that, although 5 years is an awful long time, to go for that, and even top one up a bit. We know we can get to it if we need, albeit with a loss. But I think interest will stay low for a good time yet.

If you go for 5 Years and withdraw after 2: after the penalty and tax your net return will be virtually the same as if had gone for the 2 year fix. I had a similar offer last month and although wouldn't normally fix for > than 2 years opted for the 5 year.

home_alone

I am looking at the Yorkshire 4.65% 3years, I have 2 weeks to make up my mind, its the 3 years that might win it as it falls into my perception of when things might improve 5 years is too long. http://www.ybs.co.uk/

gary

apt

Surely the Birmingham Midshires 3 year bond is better than the YBS. The same rate, but the possibility to withdraw with 90 days loss of interest.

sindersoot

I had been looking at the Birmingham Midshires too as I thought it was good with a loss of 90 days interest should you want to withdraw money if the rates increase. I'm searching for a higher rate over longer period with a withdrawal penalty but do not think there is one at the moment.

savetilibleed

D1zzy wrote: »

If you go for 5 Years and withdraw after 2: after the penalty and tax your net return will be virtually the same as if had gone for the 2 year fix. I had a similar offer last month and although wouldn't normally fix for > than 2 years opted for the 5 year.

Yeh I'd calculated somewhere near that too. I have quite a lot in two one year fixed ISAs making less than this Saga 5.10% (4.98% monthly gross/3.98% net) at present. One (now with Halifax at 3%) can be drawn upon even though it is fixed. I've not made any contributions this year to my ISA's. And I'm glad.

home_alone

apt wrote: »

Surely the Birmingham Midshires 3 year bond is better than the YBS. The same rate, but the possibility to withdraw with 90 days loss of interest.

The reason why the Yorkshire appeals to me is that there is a local branch in Cardiff so opening an account quickly with all the ID palaver should be OK, I did try to open an account with Birm/midshire some years back and they wanted 4 different forms of ID for myself and wife and they had to be different, not easy finding 8 bits of ID as most of our paperwork is in joint names, I am sure that things have changed now but my memory has not.

gary