Ulster Bank Pathway Account (3.6% variable interest rate for 6 months)

Special_Saver2

I am considering opening one of these accounts. It pays 3.6% gross p.a. variable for the first 6 months (including an introductory bonus) and then 2.6% gross p.a. provided you have £10,000 or more. There are no penalties for withdrawals and the account can be operated by telephone or online. There is also an ATM card, which could be quite handy. One downside is that if you do not already have an Ulster Bank account then you have to send them a cheque for at least £10,000 (and earn little or no interest on the money in your current account whilst you are waiting for it to be cashed). Subsequent deposits can be by electronic transfer (but not from Ulster Bank - all subsequent deposits must be "new money" to Ulster Bank).

Here is a link - Ulster Bank Pathway account.

I have three questions for the forum.

Firstly, I know people have had a lot of problems opening up a new Citibank account. For those of you who have opened up Ulster Bank accounts in the past, was it an easy or difficult process?

Secondly, I am thinking of adding this account to the feeder account section of my regular savings thread. Does Ulster Bank online banking allow you to transfer money to any account you want (or only to a single linked account)?

Thirdly, do Ulster Bank savings accounts use Faster Payments?

All the best,
SS2

Edit (01/02/10): This account has been withdrawn today so I have changed the title of this post. I cannot seem to change the title of the thread unfortunately. I have tried editing the first post then clicking "Go Advanced." From the FAQ, it appears that after a period of time, it is no longer possible to edit the thread title or delete posts.

MiserlyMartin

I just tried to open one of these. It seems harder than the citibank one. At the end of the application they say paperwork will arrive in the post. It sounds like the application is finished off by post and that they will want bank statements and ID sent. At least Citibank is done all online and you get it open within 48 hrs. Also in the process it asked which branch you want your account to be based at. I put in my postcode and nothing came up. So in the end I put London. There were only 3 branches. I don't see how having this account which is operated on the net needs to be linked to a branch!?

annedonnelly

I signed up with Ulster Bank a few months ago after Martin flagged it as having a high interest rate. I had problems finalising the online registration because they have two different processes - one for NI accounts and one for those in the Republic. I accidentally chose the wrong one. Apart from that it was fine.

WARNING - it's not so easy to get your cash out. I signed in this morning to transfer some cash out. I'm told that I can't as I don't yet have a card reader. I've ordered the card reader but the message is that it may take 15 days to arrive. So I won't have my cash when I need it!

So, if you sign up, I'd request the card reader straight away so you don't get stuck without access to your cash.

Anne

MiserlyMartin

OK I am confused about this accounts interest rate. Martin MSE says it is 3.6% AER. According to the documents sent with this accounts application form, the rate is 3.1 AER including bonus. (3.6 % Gross)

In this case wouldn't the citibank one be better at 3.30% AER, but this also quotes 3.25% gross p.a. How can we properly compare these accounts? I wish for the old days with no AER rubbish, just gross rates.

moorhen_2

MiserlyMartin wrote: »

So in the end I put London. There were only 3 branches.

I think you'll find all those 3 are in Londonderry! (The postcodes start with "BT".) I hope the choice of branch won't actually matter...

10_66

MiserlyMartin wrote: »

OK I am confused about this accounts interest rate. Martin MSE says it is 3.6% AER. According to the documents sent with this accounts application form, the rate is 3.1 AER including bonus. (3.6 % Gross)

In this case wouldn't the citibank one be better at 3.30% AER, but this also quotes 3.25% gross p.a. How can we properly compare these accounts? I wish for the old days with no AER rubbish, just gross rates.

I find the best way of comparing rates is to look at the AER, as that's what you get if the money is left in for 12 months. So, as you say, if you were to leave your money in Citibank for 12 months, as the AER is 3.30% (monthly rate of 3.25% accruing to 3.30% over 12 months), it beats Ulster, whose AER is 3.10% (due to the bonus only being on the account for 6 months).

anotherginger

MiserlyMartin wrote: »

I put in my postcode and nothing came up. So in the end I put London. There were only 3 branches. I don't see how having this account which is operated on the net needs to be linked to a branch!?

As far as I'm aware there are no Ulster Bank branches outside of Ireland!

It's probably not much use nominating a branch anyway, they aren't the best for customer service.

Reaper

MiserlyMartin wrote: »

Martin MSE says it is 3.6% AER.

I just checked the email he sent out and he does not say AER he says "3.6% variable".

I wish for the old days with no AER rubbish, just gross rates.

As 10_66 said AER is far superior to Gross, with this case being a prime example as it exposes the flaw in a short term bonus in the way a headline Gross rate does not.

apt

AER is only the best guide if you intend to keep your money in the account for a full year. If you intend to withdraw your money in 6 months or less the Ulster pathway account is a better option than the Citibank savings account.

Porcupine

The application process suggested that they'd need to see real ID (passport etc), but the website is a bit vague of exactly what they want for real applications:
http://www.ulsterbank.co.uk/ni/personal/saving/useful-information/proof-identity.ashx

I wonder if RBS/Natwest branches outside NI will be happy to certify said ID?
(I picked 'Anytime Banking Service Centre' (or something like that) as my branch)

chaotic_j

My mother applied for one of these last week, the paperwork arrived very quickly, we had to ring them to clarify a few things and they were very helpful.

If you are a non-taxpayer and request an R85 form leave the account number on it blank as you do not get the account number until you have sent them your initial deposit.

If you're not in NI then the only option of paying in the initial £10,000 deposit is via cheque. Then any additional deposits can be transferred in electronically once you have your account number along with Ulster Bank's sort code.

No proof of ID or address etc was required, apparently they found my mother on the electoral register and that was good enough for them.