stroud & swindon BS escalator bond - looks good!

soulsaver

http://www.stroudandswindon.co.uk/escalator_bond_8.aspx

4.25% year1
4.50% year2
4.75% year3
5.00% year4
5.25% year5
Rates are fixed & guaranteed
Instant access at 180 day equiv loss of interest
£1 - £250000
No linked investment required as far as I can see....
It's operated by branch & agency, or telephone & post

I reckon you may need to be quick as first 3 years look very competitive.

xrjtg

Assuming that the interest lost is the previous 180 days interest, here are the AERs if you withdraw at the following points:

6 months: 0%
12 months: 2.10%
18 months: 2.81%
24 months: 3.23%
30 months: 3.48%
36 months: 3.69%
42 months: 3.84%
48 months: 3.99%
54 months: 4.10%

4.75% over the whole term, unsurprisingly.

ManAtHome

Coventry have a 5 year (and a bit...) fix at 4.75% with 180 day penalty http://www.coventrybuildingsociety.co.uk/savings-and-investments/bonds-and-notice-accounts/Fixed-Bond-To-300416/Fixed-Bond-To-300416.aspx

soulsaver

ManAtHome wrote: »

Coventry have a 5 year (and a bit...) fix at 4.75% with 180 day penalty http://www.coventrybuildingsociety.co.uk/savings-and-investments/bonds-and-notice-accounts/Fixed-Bond-To-300416/Fixed-Bond-To-300416.aspx

S&S is part of the Cov... and I think actually this is in effect the same deal..
Are they separately FSCS protected?

atypical

soulsaver wrote: »

S&S is part of the Cov... and I think actually this is in effect the same deal..
Are they separately FSCS protected?

It's not the same, it's worse if you have to withdraw early due to the way they are increasing the interest rate. Coventry is 4.75% for all the 5 years with the same penalty.

There's more info' on the thread here.

SallySunshine

And more info here

https://forums.moneysavingexpert.com/discussion/2955192

As I've got a bond maturing with the S&S I'm going invest in the Escalator bond.

Just waiting to hear back from the Kent about opening their new 3.7% 2 yr fixed bond

KenC_3

soulsaver wrote: »

Are they separately FSCS protected?

No, they were until the end of 2010.

soulsaver

atypical wrote: »

It's not the same, it's worse if you have to withdraw early due to the way they are increasing the interest rate. Coventry is 4.75% for all the 5 years with the same penalty.

There's more info' on the thread here.

But better if you have to withdraw early in the early years due to the lower interest rates?

atypical

soulsaver wrote: »

But better if you have to withdraw early in the early years due to the lower interest rates?

Not according to what I calculated on that thread I linked to above (the penalty is lower but you earn less). Though I wouldn't trust my maths too much! Perhaps xrjtg or someone else could confirm:

1 year - 2.408%
2 years - 3.626%
3 years - 4.033%
4 years - 4.237%
5 years - 4.358%

KenC_3

soulsaver wrote: »

But better if you have to withdraw early in the early years due to the lower interest rates?

It is true that your penalty will be less but that is only because you will be earning less in the first place. What interest you are left with after paying the higher penalty will still be greater with Coventry.

soulsaver

You have to leave your deposit in slightly longer with the Cov, but overall a better version of 4.75% aggregate I have to agree.
So it was decided on penalties... Cov BS coming out ahead.