Bank of Baroda offering Bonds up to 4.9%

cepheus

This may be of some interest (pun intended). 4.9% seems like good value unless interest rates rise. At least it might drive some competition into the market.

What is Bank of Baroda offering?

Let's get down to key business straight away. You only need two words to sum up their products: best buys. Just take a look...

- One year bonds: Baroda is offering 3.15% fixed. Top of our best buy tables used to be fellow Indian bank ICICI on 3.1%.
- Two year bonds: Baroda is offering 3.8%. The next best offer again comes from ICICI at 3.7%. Coventry Building Society and the Post Office both offer exactly the same, albeit on different terms.
- Three year bonds: Bank of Baroda is the market leader again on 4.3%. Yet again it beats competition from ICICI, which languishes by comparison on 4.15%
- Four year bonds: No Baroda offer.

- Five year bonds: Top again with a 4.9% offering.

Baroda is fully signed up to the the UK Financial Services Compensation Scheme (FSCS), which entitles savers to claim up to £50,000 for single named account or £100,000 for joint accounts. And it's registered and regulated by the Financial Service Authority.

Where can I get the bonds?

Here's the thing: you have to purchase the bonds through moneysupermarket.com. This is Money has a partnership with Moneysupermarket, which powers our savings finder where you can compare and apply for the bonds.

Alternatively, if you have decided to simply apply, you can take out a Bank of Baroda bond here.*

Read more: http://www.thisismoney.co.uk/savings-and-banking/article.html?in_article_id=511185&in_page_id=7#ixzz0vqTbsVog

life_nit

Hi, thanks for posting this, i just joined and found the 1yr fixed rate bond to appeal to me, im currently undecided about whether or not to just invest one big chunk in baroda or to split it into other accounts.

With FSCS in order to be covered up to £50k do i have to do anything in particular beforehand in case the worst happens, e.g. fill out a form?

Lokolo_2

life_nit wrote: »

Hi, thanks for posting this, i just joined and found the 1yr fixed rate bond to appeal to me, im currently undecided about whether or not to just invest one big chunk in baroda or to split it into other accounts.

With FSCS in order to be covered up to £50k do i have to do anything in particular beforehand in case the worst happens, e.g. fill out a form?

No, the protection is automatically in force as long as the bank is licensed with the FSCS, which it is, so you don't need to do anything! :j

2020hindsight

One warning about Baroda.

I've opened an account with them and once the money was deposited they sent me an email with both the user id AND the password in plain text which is worrying as it displays a slightly cavalier attitude to security. Most institutions would at the very least send the password by post.

Not only that, the password they allocated was guessable made up of various obvious components of my personal information.

OK, so I've quickly gone in and changed it, but this was not an impressive start.

life_nit

2020hindsight wrote: »

One warning about Baroda.

I've opened an account with them and once the money was deposited they sent me an email with both the user id AND the password in plain text which is worrying as it displays a slightly cavalier attitude to security. Most institutions would at the very least send the password by post.

Not only that, the password they allocated was guessable made up of various obvious components of my personal information.

OK, so I've quickly gone in and changed it, but this was not an impressive start.

Crikey, that sounds scary :eek:. but if its covered then i guess im not too fussed.

By the way what account was that? thanks

Mikeyorks

One aspect to watch on their multi-year deposits - is that the interest is paid on maturity. It's more usual with such offerings that the interest is added annually.

Which means, in these cases, that tax is all due in the same year. An aspect to consider if you're close to a tax threshold and this consolidation will push you over?

DaveG247

Also some info here https://forums.moneysavingexpert.com/discussion/2588787

Lokolo_2

Does anyone know if this product has been withdrawn? As I can't see it on Money Supermarket anymore and the website won't load, comes up with a technical error! :eek:

atypical

You can still get to the site here:
https://www.bankofbarodauk.com/bmxacopn/acopn/bobmaxcmpn.aspx

But if you click apply it gives the message that "Baroda MAX site is currently under essential maintenace. The site will be shortly operational."

Lokolo_2

atypical wrote: »

You can still get to the site here:
https://www.bankofbarodauk.com/bmxacopn/acopn/bobmaxcmpn.aspx

But if you click apply it gives the message that "Baroda MAX site is currently under essential maintenace. The site will be shortly operational."

Yeah that's what I saw too, was worried that it could be that it's being withdrawn! As I was just about to apply for one, it seems to be the best 5 year fixed bond around! (correct me if I'm wrong!)

info_addict

The application process is up and working again today. Just completed my application, and have received my account details, by email.

The direct link is
Bank Of Baroda
or
Main Page

Moneysupermarket.com doesn't seem to have their link up and working yet