Northern Rock Fixed Rate Bond

Old_Slaphead

Around 4pm on Monday I was told by Customer Servs that the issue was being pulled and that no further deposits would be allowed after close of business.
I decided anyway to send a BACS - it's cleared into account today (even though NRCS told me that payt's rec'd after Tuesday would be returned).
Moral of the story - think they're using common sense and allowing Monday's transactions-in-progress, ie BACS & cheques, through but putting out the message that no further transactions are being accepted to stop people making late, late deposits.

SnowMan

Old_Slaphead wrote: »

Around 4pm on Monday I was told by Customer Servs that the issue was being pulled and that no further deposits would be allowed after close of business.
I decided anyway to send a BACS - it's cleared into account today (even though NRCS told me that payt's rec'd after Tuesday would be returned).
Moral of the story - think they're using common sense and allowing Monday's transactions-in-progress, ie BACS & cheques, through but putting out the message that no further transactions are being accepted to stop people making late, late deposits.

From what they told me it seems that they have subsequently made a decision to go a lot further than that.

For example if I go along to my branch to pay in a cheque tomorrow (say) into the 5 year bond (a deposit that I would have given no previous indication whatsoever I would pay in) they will accept it.

I'm sure we will hear shortly if practical experiences backs this up.

meunier

I'm wondering .... how can the directors of a bank CLOSE a fixed bond one day ... (I, myself, had taken their own advice and, on the strength of trust in such, then sadly resorted to transferring money elsewhere) ... and then re-open it the next .... without changing the actual offering ...

How?

Does Northern Rock have unique regulatory powers .... or do such things simply no longer matter in the free-for-all of UK 2011 ...

Grateful if others know of similar precedents. Much thanks in advance for your kind consideration.

SnowMan

meunier wrote: »

I'm wondering .... how can the directors of a bank CLOSE a fixed bond one day ... (I, myself, had taken their own advice and, on the strength of trust in such, then sadly resorted to transferring money elsewhere) ... and then re-open it the next .... without changing the actual offering ...

How?

Does Northern Rock have unique regulatory powers .... or do such things simply no longer matter in the free-for-all of UK 2011 ...

Grateful if others know of similar precedents. Much thanks in advance for your kind consideration.

To claify it is still closed and hasn't been re-opened, that is you can't apply for a new 5 year bond now.

The concession (over the strict terms and conditions) that they seem to be making is to allow savers who have already opened the 5 year bond to pay in further amounts for a short period. That seems to me to be good customer service to allow that given the short time the bond was available.

Have seen many bonds where after the issue has closed, there has then been announced a short window to pay in funds, Birmingham Midshires were always very good at this.

Have to say I have been very impressed with NR customer service and internal communications. Looking back at the thread people were given accurate information about when the bond would close.

By the nature of concessions until they are made you can't tell people about them, and I sympathise that you may have missed out, but can't see how you can really blame Northern Rock.

It seems to me great customer service to proactively ring me and tell me that I could pay some more in for a short period :T

nilrem_2

SnowMan wrote: »

Just received an interesting call from my local branch.

They have received notification from head office that money can for a short period still be deposited into the 5 year account if you opened an account in time. Couldn't tell me how long that period is likely to be but it is seems likely to be more than a few days.

Oh Damn! I sent my application to invest in my maturing bond in this one and would have liked to add to the account, however on the form it said that although they would honour invested bonds into the new account until 31st Jan, no further funds could be added after the issue closed so I didn't send any additional amounts!

talexuser

I think it's right to say that in my phone conversations NR have also been very helpful and professional about this bond. We come to forums when things go wrong and need advice so they reflect a lot of problems, when things go smoothly and you get a good deal maybe it's a good idea to say that too.;)

SnowMan

Only just noticed that the confirmation that the 180 days notice withdrawals are penalty free is explicitly given in the newsroom page of the Northern Rock website at

http://companyinfo.northernrock.co.uk/corporateCommunications/news/article.asp?newsID=370

The new five year fixed rate notice bond (FRNB) pays a competitive interest rate of 4.30% gross*/AER** pa providing customers with a guaranteed return over the five years. Should customers require access to their savings during the fixed rate period, the FRNB allows charge-free access when notice of 180 days is given. Funds cannot be withdrawn outside of the notice period

bandana999

I don't know whether anyone actually read my post #47, but I went to the branch today with 2 cheques to put in the account which I opened by phone last Friday, and. (as they had told me they would), they accepted them.
I have to say the opening and funding of this account has been one of the easiest, quickest , and most efficient I have ever experienced - all the NR staff I spoke to and dealt with seemed to know what they were doing, and they were all very courteous, helpful, and efficient.

FYI - I asked about the conditions of the notice - there are none.
You give 180 days notice, then you have 14 days in which you can withdraw part or all of your balance. You do not have to withdraw anything, and after the 14 days you can give notice again.

nilrem_2

Pity we don't get offered a few more accounts like this one, it's pretty damn perfect really, fairly decent rate guaranteed for 5yrs but if it becomes uncompetitive one can get the cash back after about 6 months! It's a wonder they didn't offer us a hundred quid to open the account as well! Lol

soulsaver

nilrem wrote: »

Pity we don't get offered a few more accounts like this one, it's pretty damn perfect really, fairly decent rate guaranteed for 5yrs but if it becomes uncompetitive one can get the cash back after about 6 months! It's a wonder they didn't offer us a hundred quid to open the account as well! Lol

And Gov backed... :sigh:
5% would have been nice...