Close Savings 2yr Fixed 4.25%

DotMatrix

It's worth looking at their credit rating if looking to invest.

http://www.closebrothers.co.uk/creditratings.aspx

alanq

Old_Slaphead wrote: »

Wouldn't be too difficult to match them up from bank details and amounts on application.

As far as I can see there is no requirement for the funds sent by BACS/CHAPS to come from the account nominated on the application form.

AndyJ52

DotMatrix wrote: »

It's worth looking at their credit rating if looking to invest.

http://www.closebrothers.co.uk/creditratings.aspx

Hi there!
Genuine inquiry......
Followed the link ... saw the info..... looked as though it may be interesting, however ... it meant zip to me!
Any kind soul out there who'd be good enough to explain how to decipher these ratings etc 'cos I'd like to know?
Many thanks for any help offered.
Cheers! Andy

Ark_Welder

AndyJ52 wrote: »

Hi there!
Genuine inquiry......
Followed the link ... saw the info..... looked as though it may be interesting, however ... it meant zip to me!
Any kind soul out there who'd be good enough to explain how to decipher these ratings etc 'cos I'd like to know?
Many thanks for any help offered.
Cheers! Andy

http://en.wikipedia.org/wiki/Bond_credit_rating#Credit_rating_tiers
http://en.wikipedia.org/wiki/Bond_credit_rating#Default_rates

Sceptic001

AndyJ52 wrote: »

Hi there!
Genuine inquiry......
Followed the link ... saw the info..... looked as though it may be interesting, however ... it meant zip to me!
Any kind soul out there who'd be good enough to explain how to decipher these ratings etc 'cos I'd like to know?
Many thanks for any help offered.
Cheers! Andy

Credit ratings may be of interest if buying shares in the bank, but not really relevant to savers who are covered by the £85k FSCS compensation scheme if the bank goes belly-up.

DotMatrix

Do you really want to have to go through the FSCS scheme though?

Why not at least do some due dilligence first to get to know your bank.

Sceptic001

DotMatrix wrote: »

Do you really want to have to go through the FSCS scheme though?

Why not at least do some due dilligence first to get to know your bank.

I remember performing "due dilgence" on Icelandic banks in 2007-08. This did not include checking their credit rating (I was young and naive in those days ), I simply googled them, found an alarming FT article about the Icelandic banking system, and so put my money in the Nationwide . I lost 1.5% pa in consequence. So much for moral hazard.

Even if I had checked their credit rating I suspect it would have been triple-A or something equally glowing (but that is an argument for another thread :mad:)

I seriously doubt that one in a thousand savers check the credit rating of their deposit-taker, and why should they if it has a UK banking licence?

alanq

How many people who are worried about Close Brother's Fitch "A" rating have accounts with Lloyd's Banking Group (A), Co-op Bank / Britannia (A-), Yorkshire Building Society (A-), Tesco (A-), Natwest/RBS (A) or other financial institutions with lower ratings? (October 2011 ratings)
http://www.moneysupermarket.com/c/news/how-safe-is-your-bank/0003043/

caper7

I just looked at the application form and you are asked to give a password. Am I wrong to be concerned about writing down a password along with all my other details on this form?

DotMatrix

Fair point. Investing with the Post Office doesn't look good at BBB

I think more banks will look to issue these sort of deposits and attractive interest rates given increasing Libor rates
and banks wishing to obtain liquidity. .... I think I might sit my hands and see what else develops.