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

D1zzy

TCA wrote: »

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?

Fill in an R85 if you are a non tax payer and its a done deal

Stompa

A great shame that it's Branch or Post only.

bryanb

bryanb wrote: »

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.

Checked in co op branch. Monthly interest not possible.
No mention of joining the co op. As has been said gross is no problem.
Manager does not expect it to be available for long, but they would say that.
Will other banks match this I wonder? (Or even beat it)

musehead

It is not possible to make partial withdrawals from the Account once opened, before the end of the
term. The account can be closed during a Closure Period. If the account is closed then a charge will
be made for this by reducing the gross* rate at which interest is paid for that Account Year by 2%.

**An Account Year is 12 months from and including the day you open the Account and each subsequent 12 month period thereafter.

Does this mean you can close your account after 12 months and receive 5% on 1 year, and 3% for just the few days between the anniversary date and account closure?

musehead

Answer to my own question: No.

9. A Closure Period starts 30 days prior to the end of each Account Year and finishes at the end of that Account Year.

So if you hold for 1 year you'll receive 3% pa, 2 years 4% pa and 3 years 5% pa.

bryanb

Nope, the closure window is the 30 days before each 12 month anniversary.

Edit-snap!

bryanb

Birmingham Midshires now offering 5% bond fixed 4 yrs, With monthly interest or annual

juicyjude

I think 4 years is quite a long time to fix, I managed to get 5% in the summer for 3 years with Yorkshire B S but who knows. 4 years at 5% may end up to be a good deal if interest rates stay like this for a long time! Oh to be psychic!

musehead

juicyjude wrote: »

I think 4 years is quite a long time to fix, I managed to get 5% in the summer for 3 years with Yorkshire B S but who knows. 4 years at 5% may end up to be a good deal if interest rates stay like this for a long time! Oh to be psychic!

You can also withdraw from the BM bond for 90 days loss of interest. Good deal.

moneylover

So possibly if you might want to withdraw the BM would work out just as good or even better as you are not restricted as to when you can take money out ?