Bank of Cyprus UK UK 4.15%AER

Saints2011

Evening folks,

Have opened up a Fixed Rate ISA for 36months with Bank of Cyprus and have set up a regular direct debit for £445permonth to hit my allowance for this tax year + bonus will be paid into ISA as well (if not going to exceed allowance that is.)

Just wondering if anyone has any experience with BOC if so is it good or bad?

Have submitted the application but arent sure when I get some sort of account details etc, only did it yesterday mind you :rotfl:couldnt see anything on the info anywhere....

spikyone

4.15% for a 3-year fix with zero government protection if they go bust? It's not the top rate for a 3yr fix (http://www.moneysavingexpert.com/savings/best-cash-isa) and even if it was the top rate it's a reasonable-sized risk for a paltry return. Wouldn't touch it with a bargepole!

Saints2011

"As at 1 April 2011, €100,000 is equivalent to approximately £88,000. For joint accounts, each account-holder is entitled to compensation up to the maximum limit. Cypriot Deposit Protection Scheme"
From website.

The rate im happy with for what I need.

Thanks

Saints2011

KirbyBirch wrote: »

"As at 1 April 2011, €100,000 is equivalent to approximately £88,000. For joint accounts, each account-holder is entitled to compensation up to the maximum limit. Cypriot Deposit Protection Scheme"
From website.

Although just checked your link going to have a look at this a bit more.

Thank you

spikyone

KirbyBirch wrote: »

The rate im happy with for what I need.

That's fair enough, but IMO there's no point locking yourself into a rate that over 3 years is likely to be at least matched by instant access accounts. Remember that interest rates are as low as they can possibly go (assuming they track base rate) so can only increase - and base rate is widely expected to.
A 0.5% base rate rise (entirely possible this year) would put the top instant access account at 4.0% (with a Santander current account), and you'd still have a lot of your fix period to run. Further rate increases will then start costing you money!

Saints2011

spikyone wrote: »

That's fair enough, but IMO there's no point locking yourself into a rate that over 3 years is likely to be at least matched by instant access accounts. Remember that interest rates are as low as they can possibly go (assuming they track base rate) so can only increase - and base rate is widely expected to.
A 0.5% base rate rise (entirely possible this year) would put the top instant access account at 4.0% (with a Santander current account), and you'd still have a lot of your fix period to run. Further rate increases will then start costing you money!

Thank you, do see your point definantly. Food for thought :beer:

alastair_h

I had a 1 year fixed rate ISA with them when they were first on the scene at 3.33% AER. This matured this February. Must say there was never any problem with them, however I was glad to transfer out at the end of the term. Nothing concrete I could put my finger on, just a little nervous about them.

opinions4u

Why does an overseas bank on a small island need to attract British savers with higher than average interest rates?

Wonder if there are any historical precedents we could learn from?

Wonder if they did fail, would their government honour their guarantee?

Wonder if there are historical precedents for a nation refusing to pay up what's due?

Saints2011

alastair_h wrote: »

I had a 1 year fixed rate ISA with them when they were first on the scene at 3.33% AER. This matured this February. Must say there was never any problem with them, however I was glad to transfer out at the end of the term. Nothing concrete I could put my finger on, just a little nervous about them.

Thank you it's good to know that in terms of service etc there wasn't any major problems.

downs523

just opened the three yr fix isa too, OP hows it going so far with your account?

bigfreddiel

spikyone wrote: »

That's fair enough, but IMO there's no point locking yourself into a rate that over 3 years is likely to be at least matched by instant access accounts. Remember that interest rates are as low as they can possibly go (assuming they track base rate) so can only increase - and base rate is widely expected to.
A 0.5% base rate rise

its not happening

(entirely possible this year) would put the top instant access account at 4.0% (with a Santander current account), and you'd still have a lot of your fix period to run. Further rate increases will then start costing you money!

there will be no rise in interest rates - not this - not next year -

anyway having year or more of this current rate will pay off if rates go up in year three because you would need a much bigger rate in that last year to make up for the lower rate in the first two years

so ignore or these hopefuls saying rates are going up - in reality they're dropping

fj