Northern Rock 2-D Savings

Madiba_2

Hello all,

This is my first post, though I've been visiting the site for a while now.

I have been looking at the Northern Rock 2-D Savings account. It look similar to a guarenteed capital set up, where it splits 50% of your investment into an IA account, and the rest goes into a Legal and General fund or funds.

http://www.northernrock.co.uk/html/savings/save2d/save2d.asp

The rate quoted or this is 10% Gross. Not sure how that works as 50% of the investment can be lost completely in theory, however 10% on half your investment still give 5%, so not bad. Of course I'm only guessing this is how it works.

So, anyone come across this 2-d account? Anyone understand how it works?

Thanks in advance

Madi

Madiba_2

I dont mean to sound pushy, but has anyone been able to take a look at this at all? I've tried requesting a call back but no luck!!!

Madiba_2

Anyone? :'-(

Mr_Mumble

The rate shown is applicable to the Northern Rock part of 2-D and is fixed until 1 May 2007. After this date it will be automatically transferred into an instant access, variable rate account. Notification of the new rate will be given shortly before the end of the fixed rate period.

Funny feeling this isn't going to be 10%!

Its best to avoid all these split savings/investment schemes. The sweetner of half the money in a high interest savings account for a short period usually turns out to be poor value when you look at the small print and see how much is skimmed from you on the long-term investment product.

If you go ahead and talk to NR/L&G make sure you take a hard look at the fees involved in the L&G investment bond, if its more than a 2% don't touch with a bargepole.

Sorry about lack of replies, the regulars on the board are usually far more responsive but some threads just happen to get missed.

Madiba_2

Thanks Mr Mumble!

To be honest i think you are right. I would be better off buying into some funds via an ISA wrapper and doing my own IA account elsewhere.

NR have been hopeless is contacting me too, I went into a branch a reallife "computer says no" clerk scribbled down my details and said "Dave" would phone me. I also put in for a internet call back twice. A week on, still no phone call from anyone. Stuff them then, I will take my money to somebody that cares.

Thanks again, and well spotted re: the change to variable rate in May!! I'd missed that bit! :-D

Froglet

When i opened my silver savings account with Northern Rock,i had a query over the proceedure.I requested a call back and got one the next day.They were very helpful and the whole thing has been superb,a great rate,speedy transfers,etc.

So i am surprised you have had a poor experience.But i guess you could say the same about any company.We all have good and bad experiences in who we deal with,especially regarding financial matters.This site is just brilliant for help,advice.................. and warnings too!!