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

Stompa

TCA wrote: »

Eh? The discussion was about the 4 year bond at 5%.

Not all of it, some of the earlier posts were clearly referring to the 2 year one.

twokcc

Anyone know if you can open more than one account say 10k,15K and 25k the if you needed to close would only loose interest on closed account and others would earn full 5% rather than investing full £50k in one account which you would have to close in full if you wanted partial acess to funds

apt

Yes. Nothing to stop you opening more than one account as long as you meet the £5,000 minimum per account.

olem2

Here's a question... why is everyone talking about the 5% being reduced to 3%?

From the Britannia 3yr 5% bond terms and conditions:

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%

I know the obvious answer is 3%, but I think given the terms and conditions, there's a very strong case for arguing that a 2% reduction to 5% is 4.9%, not 3%!!

Thoughts?

D1zzy

olem2 wrote: »

Here's a question... why is everyone talking about the 5% being reduced to 3%?

From the Britannia 3yr 5% bond terms and conditions:
I know the obvious answer is 3%, but I think given the terms and conditions, there's a very strong case for arguing that a 2% reduction to 5% is 4.9%, not 3%!!

Thoughts?

go on then argue :rolleyes:

olem2

lol... when I said argument, I really meant that it's fairly self evident, no?

The language is confusing, because they're taking percent away from percent. To me that still means it's a percentage reduction in the interest rate, not an absolute reduction in percentage points.

D1zzy

olem2 wrote: »

lol... when I said argument, I really meant that it's fairly self evident, no?

The language is confusing, because they're taking percent away from percent. To me that still means it's a percentage reduction in the interest rate, not an absolute reduction in percentage points.

So reduction is 2% of 5% mmmmmmmmmm -I didn't read it that way &I know they don't; so go on argue the case for us (could be fun) and let us know when they cave in

olem2

olem2 wrote: »

The language is confusing, because they're taking percent away from percent. To me that still means it's a percentage reduction in the interest rate, not an absolute reduction in percentage points.

If you're selling something that costs £5, and you start offering a 2% reduction on the price, it should be selling for £4.90. If you're offering me 5 something in order to keep my money for 3 years, a 2% reduction in that is that you're only now offering me 4.9 somethings.

It just so happens that these somethings are a percentage of my original investment.

hebron

I opened this account yesterday and it's the first branch based account I've had for years,(all mine are internet based), and a delight it was to open. No messing around on the internet, no sending identification off, no closing before you have had a chance to open it. I just popped in the branch and it was all over in 5 minutes. It's nice to have a passbook again!
Alas, not all the banks are where I live so I can't see I will be openning many accounts this way.

lolly5648

I agree Britannia was a delight to deal with. I opened mine in 5 minutes yesterday afternoon and received the passbook in the post today. No hard sell and no id required.

I also went into Northern Rock to try to transfer my Natwest ISAs but they said I would have to make a 25min appointment even though I have no spare money and just wanted to do a transfer. The guy said it was FSA rules that I had to make an appt with an advisor - I said bull.... and posted it to head office instead.