Post Office Growth Bond

polybear

Hi,

I was about to invest a fair wedge in the current Post Office Growth Bond:

http://www2.postoffice.co.uk/finance/savings-investments/growth-bonds

- Only to be told I have to go to the Post Office to do it (even though the website says apply over the phone...).

However, when phoning the Post Office they did mention that the existing one was about to end (applications in by Monday) and a new one was to take it's place, with the rates revealed...on Monday. So...any guesses as to whether or not the new rates will be better than the old rates?
Or shall I hedge my bets and put half in the current bond and half in the new one?

Thanks.
Brian

Bethpage

I was in the main branch of my local Post Office today purchasing two Growth Bonds, a two year and a three year. I was being served by the Branch manager and he said:

"Good job you came in this week to purchase these bonds, as the rate is changing from next Monday and it's going down"

Now he offered no evidence of this and I did not get the impression that he said it just to get me to buy/invest as we were already well into the application process when he said it.

Only passing on what he said, usual caveats if it goes up on Monday.
As I said only passing on in good faith what he said.

celtic123

i dont think they will be any lower tbh. the base rate will ofc eventually rise so you may be better waiting till monday.

celtic123

although world food prices and vat are largely behind todays inflation. the credit and quantative easing could see higher than expected inflation next year. and ofc saving rates can be linked to boe rate or libor,bonds,swaps,prime rate etc that ofc are al linked to base rate. rising inflation again could see boe increase.

celtic123

should add libor is linked to fed funds rate but received wisdom says that influences boe

Ifts

The apply over the phone option was there (to send you a application pack in the post) but if you call them they wont send an application out for the Growth Bond Issue 15 products because they don't think you will be able to receive it on time and return it to them before Monday (7/11/11) when they will be withdrawing it (this was what I was told on the phone to the Post Office).

The Post Office will be launching Issue 16 (the guy I spoke to on the phone said he didn't know the new rates yet). So depending what direction they will be going in with the rates on the new Growth Bond Issue 16 (being launched on Monday) it might be worth getting Issue 15 at the post office while its still available.

I might be wrong here but if the Post Office are bringing out Issue 16, then they may have collected the funds they needed and the rate maybe reduced on Issue 16 (Although I do hope I'm wrong with my prediction, could do with better savings rates!)

The Bank of Ireland UK - offering 3.90% gross on their 2 year fixed rate Web Bond (can apply online)
http://www.bankofireland.co.uk/personal-banking/savings-accounts/web-bond/
Bank of Ireland UK is covered by Financial Services Compensation scheme (FSCS), Bank of Ireland UK and Post office share one lot of £85,000 protection.

polybear

Thanks for the replies. I was looking at the 2-year bond (3.96%) but have just seen that a new bond now tops the MSE best buy list: Yorkshire/Clydsedale at 4%. So I can now wait till monday and see what the post office do before deciding
Many thanks for the advice.

polybear

oldvicar

I realise they are all [curently] independent UK subsidiaries, but personally I prefer the parentage of Yorkshire/Clydesdale (Australian) to the Post Office (Irish). If nothing else the good folk of Yorkshire and Scotland are reputedly a wee bit canny wi' t'brass .

Ifts

New Post Office Growth Bond Issue 16 has reduced rates on their 1,2 and 3 year bonds compared with the previous Issue 15

http://www.postoffice.co.uk/finance/savings-investments/growth-bonds

Bethpage

As we thought... Post Office Growth Bonds Issue 16 have less interest

1 year term = 3.25% gross/AER fixed - down from 3.41%
2 year term = 3.75% gross/AER fixed - down from 3.96%
3 year term = 3.76% gross/AER fixed - down from 4.21%
Interest paid annually
Bonds from 7th November 2011

pablo1827

oldvicar wrote: »

I realise they are all [curently] independent UK subsidiaries, but personally I prefer the parentage of Yorkshire/Clydesdale (Australian) to the Post Office (Irish). If nothing else the good folk of Yorkshire and Scotland are reputedly a wee bit canny wi' t'brass .

Opened a 2yr fixed rate bond with the clydesdale today paying 4% gross.Adviser stated that she didnt think it would be available for long.Also agree with OLDVICAR post above.