Ipswich BS Target Saver

KisstheSon

Hi there,

This saving account offers 8.25% (AER), does anyone know anything about it. Is it worth it?

Also what does AER mean?

Thanks

Milarky

Yes - it must be the highest regular saver account not requiring a linked current account. It's an easy account to open by post (you can print the application form yourself) and they issue a passbook promptly. Some things to watch however:

Subsequent payments must be equal to first (cheque)
Only a single payment per calendar month (by Standing Order) allowed - you set this up yourself once they issue you with a nine digit account number

Payments between £90 (quite a high minimium) and £250 per month.

If you apply this weekend, you should be able to make a second payment in December - almost straight away in other words

Give notice to withdraw the final amount as it doesn't go into a particularly good rate at the end of 12 months.

oscarhugo

'Sfunny -- I always thought The Ipswich required you to live in the locality... Maybe not for postal accounts. Lemme have a look at the website..

oscarhugo

Can't see anything on the website that refers to it. I've sent them an e-mail to ask. I'm sure (that is, I'm not sure..) that Ipswich BS used to have a requirement to live in the locality. I'll report back if/when I get a reply.

tom188

AER.
Annual equivalent rate - the rate you will get if interest was paid annually (in this case the same as gross rate as this is how interest is paid).
If interest is paid monthly/quarterly etc the gross rate will be lower than the AER, since the AER will include the effect of compounding.

For the mathematically minded the difference is:

Gross rate = monthly rate % * 12
AER = 100 ((1 + monthly rate %) ^ 12 - 1)

ReportInvestor

oscarhugo wrote:

'Sfunny -- I always thought The Ipswich required you to live in the locality..

You are right. They did.

But it's all change at our all singing, all dancing modern Suffolk mutual as management seeks to alter a pretty disastrous business model - or bring in new customers prior to a merger, depending on your point of view.

The Chief Executive, who practically joined them out of school at 16, is on the way out so there may be yet further changes afoot.

oscarhugo

Well, There Ya Go! Thanks. Mebbe I'll tek out an account [or 2 - to inlclude the wife] to add to the ones I've just done with Britannia & Lloyds TSB.

Kazza242

KisstheSon wrote:

This saving account offers 8.25% (AER), does anyone know anything about it. Is it worth it?

I have one of these accounts. It was really easy to open and quick too. 8.25% is an excellent rate, so I'd say go for it. At least your money will be working hard for you. Also, if they merge or are taken over by another building society you could receive a windfall.

[Deleted User]

Kazza242 wrote:

I have one of these accounts. It was really easy to open and quick too.

Ditto. Account opening was painless and customer service excellent (to date).