Co-op (Britannia) Bond 3yr @ 5%

D1zzy

Can't see this on their Website but Moneyfacts gives it as available from today
The Co-operative Bank -With Effect From:25/11/2009
3 Year Fixed Rate Bond gross 5.00%
Aer 5.00% 3 deposit £5,000

Earlier access on closure only during closure period subject to penalty. Closure period is for 30 days before ann'sry date each year with a 2% penalty on rate for that year.
Update
Britannia -Thanks Tracy
http://www.britannia.co.uk/home/_site/channels/savings/savings-bonds/3yr-fixed-bond/index.html

tracyk

It's with Britannia....have a look on their website

Milarky

There's also the 'Co-op divi' to consider here. I wonder if this account is excluded perchance?

Ah, 'false dawn' see here

9.2 APPENDIX 2 – The Co-operative Financial Services
Points are not awarded on:
The Co-operative Life and Health Insurance Savings policies (Pensions, Savings and Life & Health Insurance) as profits from these policies are already distributed through the product structure.
Banking accounts which are in arrears at the closing date for the relevant trading period.
Accounts where the customer is deceased at the closing date for the relevant period.
Offshore Savings products, as there are tax benefits attached to these products and the payment of share of profits would have tax implications.
Products for under 16s will not earn membership points. Members are required to be over 16.
Affinity products for both savings and Visa will not earn membership points.
Fixed term deposits.

D1zzy

Milarky wrote: »

There's also the 'Co-op divi' to consider here. I wonder if this account is excluded perchance?

Showing yr age there Milarky & maybe yr Northern Heritage

ManAtHome

They sent me a 'divi' card when they merged with Brittania (never got one with Co-op savings though).

D1zzy

ManAtHome wrote: »

They sent me a 'divi' card when they merged with Brittania (never got one with Co-op savings though).

Me too -"membership card"
Not quite the same as sticking the chitties on mi mum's "divi" sheet and dashing down to the co-op on Divi Day to collect the proceeds

realaledrinker

You can also open these accounts in Co-op branches (not call centre or Internet - all the paperwork is sent to Leek for processing on Britanna systems). It's the first product to be offered across all of the new group. Co-op bank accounts will be offered in Britannia branches in the new year

ManAtHome wrote: »

They sent me a 'divi' card when they merged with Brittania (never got one with Co-op savings though).

That's because you have to join the Co-operative to become a member. All Britannia members automatically became Co-op members at the merger date. Just opening a Co-op account does not make you a member - you have to join.

dougz_2

If the account is closed, a charge will be made by reducing the gross* rate at which interest is paid for that Account Year by 2%

This sounds like they will be debiting the penalty from interest before tax, unlike similar accounts from BirmMidshires etc, that deduct it from your balance after tax. This would mean they have effectively made the penalty tax deductable, which could be particularly favourable to higher rate tax payers who will only lose 1.2% by using the facility, in contrast to the standard taxpayers 1.6%, and non-taxpayers who lose the whole 2% from their funds.

Jonbvn

Good find - seems like an excellent account. Hopefully similar ISA products will be available come the New Year.

TCA

Good rate. Not bad at all. It states that interest will be paid net of tax. I had a look at the T&Cs to see if they could pay gross interest and found that:

"Unless the Specific Terms and Conditions of your Account specify otherwise, we will pay you interest after deducting income tax at the prescribed rate. If you are a non-taxpayer, you can apply to receive your interest without tax deducted using HM Revenue & Customs form R85."

The key product info does specify otherwise, so does the word "apply" then mean that you might not get paid gross interest? Or if you send the form is it a done deal?

bryanb

Going to call in at a co op branch today. If they can answer the gross int question I'll report back. Another Q is monthly interest, would be nice but it's not mentioned.