West Bromwich E Bond 21 extension offer

D1zzy

Ooer -seem to have accidentally reported this is spam - not sure how to "unspam" -so aplogies

D1zzy

Just got my letter with an option to extend from May 2010 to May 2011 @ 4.31%.
Since I am currently looking at NSI 2year @ 4.25% or AA 2yr @4.35% - this seems an OK offer whatever their reasons.
......or am I missing something - wouldn't be the first time :rolleyes:

Don't think there is a get out option, but I'm OK with that upto 2 years.

emily2ton

Thanks for all your views. I am tempted - there doesn't seem to be a lot better on offer at the moment.

D1zzy

In the end I decided not to go for this on the basis that the money is
1) already earning 4.25% until next May when there may be better offers around.
2) 4.25% is about the prevailing rate for 2 year accounts and I think that sort of rate or better, is still likely to be be around in 6 months

I would however probably do a new 2 year bond (say NSI @ 4.25%) starting now using money currently earning say 3%ish in an instant access account. not sure if that makes sense but it seemed logical at the time

twokcc

Dads got this letter also, doesn't look a bad deal but his only income apart from state pension is from interest. Planned his investments so that he earns up to the max pension allowance(just under £10K) in each year so that he can get his interest paid tax free and doesn't have to reclaim tax at year end. His bond was due to mature in May 2010 i.e next tax year so wouldn't want an extension to mean that he gets paid the interest on the existing bond this tax year as he will then have to pay 20% tax on it. Couldn't see anything in letter to indicate when interest would be paid will reread tomorrow and check with WB if its not clear.

AlexInExile

the 18mth advance-maturity bond will be mature on 31 May 2011. Given the existing bond you are holding will only be free by may 2010. In reality, the 10mth bond is only 12mth from the date that the existing bond is maturated.
May be a good rate in that sense?!