Bank of Baroda - fixed deposit T&C

hungry_jenny

Hi

I've been reading around about the 1 yr fixed rate bond offering 3.15% in the forums etc and googling to see latest news about the bank - I'm sure I'm not alone in being a little hesistant about putting a lump sum with an overseas bank.

I'm becoming more convinced though and it does seem to be covered by the FSCS etc but there's just one thing I can't seem to find (their website is confusing!) - what their terms and conditions are on maturity - I just want to know if I'm freely able to move it once the year is up (should I wish to), or if there are any sort of penalties or hidden fees for doing this. I'm not planning to touch the money within the year, this is purely just asking about what happens on maturity.

Any insights?

Cheers

Hungry Jenny x

gt94sss2

hungry_jenny wrote: »

I've been reading around about the 1 yr fixed rate bond offering 3.15% in the forums etc and googling to see latest news about the bank - I'm sure I'm not alone in being a little hesistant about putting a lump sum with an overseas bank.

I'm becoming more convinced though and it does seem to be covered by the FSCS etc but there's just one thing I can't seem to find (their website is confusing!) - what their terms and conditions are on maturity

See Page 3 of their T&C - unless you instruct them otherwise when opening the account, it appears they will automatically electronically transfer the money to your external linked/nominated account - i.e. where the deposit cheque/original electronic transfer originally came from.

or as a different part of their site says:

On maturity your funds would be transferred to the same nominated account from where they were originally received.

Regards
Sunil

hungry_jenny

Thanks Sunil, that's exactly what I was looking for. I had a quick scan and it looks ok but going to look at in detail before applying. I'm pretty sure I will go for this though.

Thanks again for your help

Hungry Jenny x

garj

Hi, I'm thinking of going for the two year bond but am slightly apprehensive because everything is just done online. I'm thinking of putting about 11k into this bond and just feel a bit uneasy when everything is just done via email. The 3.8% rate is really attractive though compared to others I've seen. Just wondering what other peoples thoughts are on this?

alanq

You can get 3.7% fixed for 2 years with a Coventry BS account that can be managed by phone.

http://www.coventrybuildingsociety.co.uk/savings/productfeatures.aspx?ProdCode=C2Y34

AshleyBones

I had a basic understanding APR but do not understand AER. I have heard that many bank staff and even banks do not understand what AER is or at least cannot explain it to savers.

I have just phoned Bank of Baroda and asked them what their gross interest rate is on their 1 Year Fixed account and the man stated that it was - as shown on the website - 3.15% AER. I explained that I wanted to know the gross % and that another bank (Co-oP) was quoting 2.81% AER but 2.78% gross (and 2.22% net) but the Baroda man then said that their net rate was 2.52% AER and repeated that their gross rate was 3.15% AER.

Is this a demonstration of the bank staff being confused and thus confusing me? Or am I just not understanding?

Surely there is a gross rate, a net rate and the AER is an equivalence or comparison rate for guidance?

Help! Please!

Can I trust (would you trust) a bank who are unclear what their rates are or mean?

alanq

If an account is for exactly one year with interest paid only at the end of that year (and with no short-term bonuses) then the Gross % and AER % will be the same.

If interest is paid monthly the Gross Rate will be lower than the AER. Usually (but not always) this produces the same annual return as if the interest credited monthly was left in an account to compound the interest. This is the case with the Co-op.
See http://www.co-operativebank.co.uk/servlet/Satellite/1193206370514,CFSweb/Page/Bank-Savings#FixedTermDeposit

AshleyBones

As a PS to the above, I am looking for a 1 year, fixed rate interest, to invest £15,000. No withdrawal or additional deposits required.

AshleyBones

alanq wrote: »

If an account is for exactly one year with interest paid only at the end of that year (and with no short-term bonuses) then the Gross % and AER % will be the same.

If interest is paid monthly the Gross Rate will be lower than the AER. Usually (but not always) this produces the same annual return as if the interest credited monthly was left in an account to compound the interest. This is the case with the Co-op.
See http://www.co-operativebank.co.uk/servlet/Satellite/1193206370514,CFSweb/Page/Bank-Savings#FixedTermDeposit

Understood - thanks.

But surely the gross annual rate, is the gross annual rate?

If interest is paid monthly then that would give you another rate - and that rate would have an AER rate, which could be compared to the gross rate?

tiaoru

I recently applied for an online fixed Bond account of Bank of Baroda through MoneysavingExpert.com. I transferred the fund by BACS one week ago and have not received their confirmation yet. I tried E mail and telephone and got no reply or answer. Has any one know how to contact this Bank customer sevice?

life_nit

Bank of barada have the ULTIMATE worst customer service...wait for it...in THE WORLD.

If you don't mind calling 20 times, before being put through to some idiot, and this does not make you angry, then it's fine.

I too am awaiting my details being sent to me, then im not speaking to them for a year.

Here is how you get through to Baroda. >>> call this number (Mr. Z H Kazi, Senior Manager)
(Cards & Money Laundering Reporting Officer) 020 7457 1514

They picked up straight away LOOL. and transferred me much more efficiently.

then ask them or the manager to put you through.

I spoke to one of their employees, and they said the have had email problems. he said i will get it monday.

I honestly dont think they should even have a customer service phone line, and should only deal through email it's that horrible. They dont even say 'welcome to bank of baroda ............. speaking' it's out of this world for me to see that for a bank of all places, its worse than calling a chip shop. RANT OVER.