KRBS - One year fixed rate bond: 3.60%

Ifts

One year special edition fixed rate bond - 3.60%

Account Type: Fixed Term
No minimum age
Minimum Opening Balance: £1000
Withdrawals Allowed

http://www.krbs.com/products/savings-and-investments/investment-bonds/one-year-special-edition-fixed-rate-bond/

It's only available for a limited period and can be withdrawn from sale at any time without notice.

Also covered in this article: http://www.thisismoney.co.uk/money/saving/article-2047758/Kent-Reliance-launches-new-best-buy-3-6-year-bond.html

VT82

Why would they overshoot the current Best Buy by a whopping 0.14%? You'd think they'd have got the money in just as quick paying 3.54% or something?

alanq

Moody's have downgraded a number of large and not so large banks and building societies. I presume that they will have to pay higher rates in the markets and so will be in a hurry to raise funds from retail customers instead. KRBS may be anticipating the competition.

The "We will write to you 10 days prior to maturity of your fixed rate bond notifying you of the end of your fixed rate. The maturity balance will be transferred to a suitable product of our choosing unless we receive alternative instructions." puts me off. Too much scope for funds to be "accidentally" rolled over.

I would want a bond that rolls over into an instant access account or at worst is available for penalty free access for a month following maturity.

oldvicar

alanq: you could always give them your "alternative intructions"..

What I think is good about this fixed account is "withdrawals allowed" (subject to 180 days penalty).

MarkyMarkD

14 days cooling off period, as well, so if you don't bother replying before maturity you have another chance after.

I don't think the downgrade is very relevant - the rates banks pay for wholesale funds, if they can get them, are a lot lower than retail savings, but the funds aren't generally available for such long terms.

badger09

I applied for this online yesterday 11.30 (ish)

11.45 KRBS acknowledged application and explained 'next steps'

13.55 KRBS confirmed they'd verified my identity and that I could fund my account by BACS, which I did.

Excellent and speedy so far - what's not to like? :cool:

I monitor all my Fixed Rate/Term accounts so there is no chance of an accidental roll over into an unsuitable account.

Old_Slaphead

VT82 wrote: »

Why would they overshoot the current Best Buy by a whopping 0.14%? You'd think they'd have got the money in just as quick paying 3.54% or something?

Perhaps because The Cheshire (aka Nationwide) is paying 3.55%

Jake'sGran

alanq wrote: »

Moody's have downgraded a number of large and not so large banks and building societies. I presume that they will have to pay higher rates in the markets and so will be in a hurry to raise funds from retail customers instead. KRBS may be anticipating the competition.

The "We will write to you 10 days prior to maturity of your fixed rate bond notifying you of the end of your fixed rate. The maturity balance will be transferred to a suitable product of our choosing unless we receive alternative instructions." puts me off. Too much scope for funds to be "accidentally" rolled over.

I would want a bond that rolls over into an instant access account or at worst is available for penalty free access for a month following maturity.

This week I have been looking for the best fixed rate short term bonds and saw this clause on a few of them i.e. "we will write to you 10 days etc.....It looks like they are saying there is no choice but, of course, you can write to them with instructions about transferring your money to your current a/c or sending you a cheque etc. Its your money and you can say what you want them to do with it!

One of the banks where I had money maturing told me they could not send it to my linked a/c by BACS or some other normal method and I had to have a cheque. If I insisted on BACS there would be a charge of over £30.

I sent an email to the CEO after which they sent the money by CHAPS the following day at no cost to me.

Ifts

Jake'sGran wrote: »

One of the banks where I had money maturing told me they could not send it to my linked a/c by BACS or some other normal method and I had to have a cheque. If I insisted on BACS there would be a charge of over £30.
I sent an email to the CEO after which they sent the money by CHAPS the following day at no cost to me.

Restricting your options of getting your funds back at maturity, and asking £30 for Chaps to get your own money back is taking the mick, but £30 to get it back via Bacs is just taking the pi$$. I think they were trying it on but fair play for getting it back at no cost.

2010

Old_Slaphead wrote: »

Perhaps because The Cheshire (aka Nationwide) is paying 3.55%

Nationwide being one of those downgraded by Moodys.

2010

The 3.6%, even after tax, is better than their one year fixed ISA, which pays 2.75% !!!!!!