MSE News: New 'Big Bucks Bond' pays market-leading 3.75% 15 January 2010 at 1:26PM in Savings & investments 9 replies 4K views

Former_MSE_Dan

This is the discussion thread for the following MSE News Story:

"Buckinghamshire Building Society has launched a new fixed-term savings account, which pays the top rate available over a year, and unusually could rise further during the lock-in period..."

Read the full story:
New 'Big Bucks Bond' pays market-leading 3.75%

Milarky

Really should have stressed the following from the product page:

Please be aware this is a limited edition account and may be withdrawn at any time. Sending us your application does not guarantee that we will be able to open an account for you.
AND
Only one Big Bucks account (any issue) per customer is permitted.

It will probably be available for a few days only (say, till Tuesday) with walk-in customers able to get it whilst postal applications should be sent no later than tomorrow I would guess.

As to that 'Issue' reference - it gives them the option to offer longer periods of tracking the SVR (such as two or three years) so if people do miss out on this one they could possibly end up applying for these...

Current rates (all issues):

baby_boomer

Agree with Milarky. Going on MSE guarantees that this tiny one branch society will be swamped and have to return applications .

Let's see how it pans out, but MSE bigwigs should flag up if a society is a one branch outfit - and supply an appropriate "wealth warning" when they do these "ads".

I hope the local postie in Chalfont St Giles gets paid overtime for his services . If not, then he should get a tip from the MSE office charity bowl.

ANGLICANPAT

Theyve already got a second wave lined up at a lower rate. Cant quite remember what they said it was, but registered it was still reasonable. As all the applications will be with cheques which they know are losing you interest since you drew them out of your bank and will continue to do so until they get paid in somewhere, I think they could get away with just accepting a handful(who would know?) at the high rate, and then just ring everyone else and say sorry weve closed the 3.75% , do you want to go with our new bond at the lower rate, or shall we post your cheque back. (amd youre thinking oh God what if it takes 3 days or more to get back to me - Id best cut my losses and say yes please)

anamenottaken

ANGLICANPAT wrote: »

. . . I think they could get away with just accepting a handful(who would know?) at the high rate, and then just ring everyone else and say sorry weve closed the 3.75% , do you want to go with our new bond at the lower rate, or shall we post your cheque back. (amd youre thinking oh God what if it takes 3 days or more to get back to me - Id best cut my losses and say yes please)

Assuming it was a cheque you personally drew on your current account (and it probably does have to be one drawn on an account in your name) then it doesn't matter if it were going to take 3 months to get back to you. If it's being returned you can immediately use the balance which it represents - the cheque isn't real money, it's only a piece of paper with your offer to deposit that amount.

ManAtHome

Not likely to be raising a massive amount anyway - they're in the bottom 10 Building Societies by size with total mortgage book less than £200 million (Nationwide book is over £200,000 million).

Nothing to stop you moving the cash as soon as they phone as the cheque won't be cashed...

ANGLICANPAT

[QUOTE=anamenottaken;then it doesn't matter if it were going to take 3 months to get back to you. If it's being returned you can immediately use the balance which it represents

Yes I was thinking more about the possibility of them sitting on the cheque for several days if theyre deluged, before you know if theyre going to refuse you the higher rate. Many like me will have transferred the capital into their cheque account from somewhere like EGG . It cant be spent or redirected elsewhere till you hear from Buck so its sat there with no interest. Youre right about using the value of the cheque up if you choose ,once you know Bucks decision , I had overlooked that.
Thats the trouble with EGG , no cheques or fast payments

dov

Issue 1 and 2 seem to be closed and they are up to Issue 3 paying 3.55% with the same conditions as before. They seem to be dropping the rate at 0.1% intervals.

http://www.bucksbuildingsociety.co.uk/investments/big_bucks_bond_issue3.asp

robbogee

I have just phoned them to see if the application for Issue 1 which I sent on17th Jan had been received, and it has been opened as an Issue 4 @ 3.5%, not the 3.75% offered in issue 1. When I pointed out that it was not stated that lower interest rates would be offered I was told I could cancel it when the paperwork arrives. Not very satisfactory and it doesn't bode well for a long-term relationship with the Society. Also, the relevant page on their website can not be accessed at the moment.

Milarky

It looks as though Bucks Building Society has had to raise mortgage rates - and one beneficiary will be holders of the 'Big Bucks Bond' series as the rate on these was linked to it

From 1 June 2010, BBB Iss 1 will go up from 3.75% to 4.24% (and others by a like amount)

Current rates (all issues):