Ruffler Bank AER 6.14%

Market_Oracle

AER rates as interest is paid quarterly.
1 year 5.8%
2 year 6.07%
3 year 6.12%
4 year 6.14%

The Rufflerbank is a small UK bank that is apparently FSA registered so your money is secure.

http://www.rufflerbank.co.uk/savings/fixed_rate_bonds.php

ReportInvestor

MarketOracle.co.uk wrote:

FSA registered so your money is secure.

That is potentially misleading.

Any bank might collapse, some more than others.

One of the FSA's jobs is to manage financial stability. (You could say that it concentrates more on this than on protecting consumers in advance or financial education - two of its other briefs.) In fact the FSA is grossly overworked and we expect it be a miracle worker when it certainly isn't and probably couldn't be.

FSA registration is a good thing. But the nature of Ruffler Bank's lending (which in turn make those high interests rates possible) is likely to be more risky in the event of a financial / economic / banking crisis.

In that event the FSA registration guarantees you compensation from the Financial Services Compensation Scheme, whose details are well know on these boards.

100% - First £2,000
90% - Next £33,000
0% - Next £million .

So you pays your money, and you takes your choice. But hopefully with eyes open .

nrsql

And those are fixed inrterest rates so you are gambling on the boe rate not going up by that much.

Market_Oracle

ReportInvestor wrote:

So you pays your money, and you takes your choice. But hopefully with eyes open .

Well, Ive put my money where my mouth is, the banks been around for 37 years, makes a profit and thus there is a high probability it will be around for the 2 year term for my investment

Here check out their Annual Report & Accounts to 31st March 06, before passing judgement, I did

http://www.rufflerbank.co.uk/uploaded_files/Ruffler_Report_and_Accounts.pdf#search=%22ruffler%20bank%20annual%20report%22

Market_Oracle

nrsql wrote:

And those are fixed inrterest rates so you are gambling on the boe rate not going up by that much.

Err no, not quite, the BOE base rate is at 4.75%, the fix is at 6%...So the fixed rate is discounting a large movement in the Base rates, especially when you compare against instant accesss accounts in the region 4.8% to 5.25%.

It would need a base rate of about 5.5% to get instant access accounts in the 6% region.

Yes, they might get their in 2 years time .... but thats when the bond matures