Abbey launch Fixed Rate Monthly Saver - 7% (issue 6)

Dagobert

Kazza242 wrote:

it doesn't matter too much if your withdrawing your money as soon as the account matures (which most MSE's will be doing)

except those that don't have branch access

Kazza242

Dagobert wrote:

except those that don't have branch access

When your account matures this time they may not have a backlog of withdrawals to do. The fixed rate monthly savers have been running for quite a while, so there may not be a lot of people withdrawing their money at one time.

The other thing to look out for is the amount of interest you receive when withdrawing matured funds. In October and November 2005, some MSE's reported that Abbey had paid them an incorrect amount of interest. Abbey acknowledged this and paid the outstanding amount around 1 week later.

Dagobert

Kazza242 wrote:

In October and November 2005, some MSE's reported that Abbey had paid them an incorrect amount of interest.

I always work out a ball-park figure and see whether it fits. Do you actually work the interest out to the day?

Kazza242

Dagobert wrote:

I always work out a ball-park figure and see whether it fits. Do you actually work the interest out to the day?

When my Abbey monthly saver matured in Oct 2005, I worked out how much interest I should make for each month and then added it all together. Fortunately, Abbey paid me the correct interest.

If you're withdrawing funds a little while after your account matures, then I'd recommend checking the amount of interest you should receive during the fixed rate term and up to the date of account closure. This is where Abbey underpaid customers in late 2005. They paid the correct amount of fixed term interest, but failed to pay the interest (at the variable monthly saver rate) up to the date the account was closed.

RayWolfe

ED wrote:

My method for this is a branch visit on the 2nd working day of the appropriate month, equipped with passbook and iD proof, to instruct immediate supply of a counter cheque (or instant transfer to Abbey cheque account), then posting a cheque for next-day interest-earning via (for eg) Coventry BS. Abbey's system repeatedly failed to allow staff access, but it worked on the 3rd working day.

Makes perfect sense but as my note above said, I collected 1/3 of the maturity in cash, whipped it over the road to my bank, rushed home and transferred it to my online savings account with that bank!
(So that earned me a whole 36p which I immediately withdrew and treated my wife to a slap up dinner at Mr Miggins' Pie Shop.)
The things we do for a bit of extra interest! ;-)

Dagobert

Daft question: why does the application form show a field for opening balance if all 13 contributions have to be made by SO?

RayWolfe

Strange!
I thought at first it was the only place for an amount but I found the question further down the form. Probably, some sort of standard "topper" to their applications.
What is now going to be problematic is timing. With the post and holidays we have to get the form back and wait for them and then get the first payment sorted; could run into mid January before we start earning interest.
I think I'll do mine at a branch next week, then I'll be certain of getting my first payment off on 2nd January.

Dagobert

RayWolfe wrote:

What is now going to be problematic is timing. With the post and holidays ...

With Abbey, that's not only a Christmas problem. The last application took well over four weeks to be processed. In fact, I had to follow it up and even then they got the account reference on the SO form wrong so that my first payment bounced.

Kazza242

RayWolfe wrote:

Strange!
I thought at first it was the only place for an amount but I found the question further down the form. Probably, some sort of standard "topper" to their applications.

They have this field on all of their application forms. All deposits (including the initial one) have to be by standing order (BACS).

RayWolfe wrote:

What is now going to be problematic is timing. With the post and holidays we have to get the form back and wait for them and then get the first payment sorted; could run into mid January before we start earning interest.
I think I'll do mine at a branch next week, then I'll be certain of getting my first payment off on 2nd January.

I'm going to my local branch on Monday to get mine done. That way I can get the account details in time to make an early January initial payment.

ED

Is the likely outcome of January 2007 1st deposit :

January 2008 = 13th deposit

Friday, 2nd February 2008 = 1st day withdrawal/closure permitted?