BM 4.05% fixed for 2 years: good deal?

alanwsg

Been looking around for a home for the proceeds of a fixed rate bond I've got maturing on 1st Jan and came across this from Birmingham Midshires.

It has the advantage that you can pay monthly interest into an external bank account which I like. Other accounts that match it from AA or Yorkshire don't allow this. Only disadvantage (for me) is that it's "postal" operated, you can apply on-line but then have to send them a cheque: so last-century!

I haven't seen it in any of the "top-rate" tables but it looks like a pretty good deal to me or am I missing something?

http://www.bmsavings.co.uk/savings/fixed-term-savings/762/2-year-fixed-rate-bond-monthly-interest.aspx?WT.ac=BMFTSFRB-762

VfM4meplse

Without looking at the detail it seems a pretty good deal based on the interest rate alone, but everyone's circumstances are different. Like all bonds you have to be prepared not to access your funds but if it's come out of a bond, you're not going to miss it for another couple of years. BM are a reputable organisation so I say go for it.

Rinoa

alanwsg wrote: »

Been looking around for a home for the proceeds of a fixed rate bond I've got maturing on 1st Jan and came across this from Birmingham Midshires.

It has the advantage that you can pay monthly interest into an external bank account which I like. Other accounts that match it from AA or Yorkshire don't allow this. Only disadvantage (for me) is that it's "postal" operated, you can apply on-line but then have to send them a cheque: so last-century!

I haven't seen it in any of the "top-rate" tables but it looks like a pretty good deal to me or am I missing something?

http://www.bmsavings.co.uk/savings/fixed-term-savings/762/2-year-fixed-rate-bond-monthly-interest.aspx?WT.ac=BMFTSFRB-762

Sounds a very good rate for 2 years. BM is owned by lloyds. They mostly finance BTL so they can perhaps justify paying higher savings rates as their rates and fees for BTL are high. Just make sure you don't go over your £85k limit for all Halifax/LLoyds accounts.

opinions4u

Rinoa wrote: »

Sounds a very good rate for 2 years. BM is owned by lloyds. They mostly finance BTL

Lloyds Banking Group is the biggest residential mortgage lender in the world. While they have dabbled in BTL it's by no means "mostly".

Just make sure you don't go over your £85k limit for all Halifax/LLoyds accounts.

BM's banking licence is the Bank of Scotland, which includes Halifax, IF, Saga and AA.

Lloyds TSB and C&G accounts are covered by a completely different banking licence.

MoneySaverLog

alanwsg wrote: »

Only disadvantage (for me) is that it's "postal" operated, you can apply on-line but then have to send them a cheque: so last-century!

They seem to run very similar accounts to the AA. When I first opened my ISA with them they wanted a Cheque to start with from the account I set up as a linked account.

Further payments went through by Direct Debit through the linked account. Not quick either, you had to wait a few days for them to take the payment.

Mind you just recently opened a savings account with them, though this time they are due to take the money from the linked account soon by DD, again not instant with the AA.

Not sure if they are going to do FP, I seem to remember getting something in the post about this in the past. I also believe the Birmingham Midshires is really what the AA are and they have just tagged onto a Building Society. After all the AA seem to have fingers in many pies these days and have come a long way since the age of breakdown recovery only.

Rinoa

opinions4u wrote: »

Lloyds Banking Group is the biggest residential mortgage lender in the world. While they have dabbled in BTL it's by no means "mostly".

Sorry I didn't make it sufficiently clear for you. I was referring to BM as being predominantly concerned with BTL, where rates and fees are usually higher than for residential mortgages.

Ifts

alanwsg wrote: »

I haven't seen it in any of the "top-rate" tables but it looks like a pretty good deal to me or am I missing something?

Or there is this 2 year fixed rate bond from Shawbrook Bank offering a better rate of return:

2 year fix @ 4.20% - https://www.shawbrook.co.uk/personal/save/fixed-term-deposits/2-year-fixed-rate-bond-49/

They can pay the interest into this account or another account where you are named.

Also other competitive rates for fixed rate bonds between 1 & 5 years from Shawbrook Bank in this thread: Shawbrook Bank - New fixed rate bonds

Who are Shawbrook Bank: https://www.shawbrook.co.uk/about-us/

Procrastinator333

alanwsg wrote: »

Been looking around for a home for the proceeds of a fixed rate bond I've got maturing on 1st Jan and came across this from Birmingham Midshires.

It has the advantage that you can pay monthly interest into an external bank account which I like. Other accounts that match it from AA or Yorkshire don't allow this. Only disadvantage (for me) is that it's "postal" operated, you can apply on-line but then have to send them a cheque: so last-century!

I haven't seen it in any of the "top-rate" tables but it looks like a pretty good deal to me or am I missing something?

http://www.bmsavings.co.uk/savings/fixed-term-savings/762/2-year-fixed-rate-bond-monthly-interest.aspx?WT.ac=BMFTSFRB-762

Timing of interest payment shouldn't really matter. Just take your interest up front. E.g for every £100, put £92 in. You have £8 interest up front. And 2 years at 4% pretty much returns your £100. Tweak it if you need it exact.

alanwsg

Procrastinator333 wrote: »

Timing of interest payment shouldn't really matter. Just take your interest up front. E.g for every £100, put £92 in. You have £8 interest up front. And 2 years at 4% pretty much returns your £100. Tweak it if you need it exact.

Well, that's not really the reason I want interest paid monthly: I just like to see something "happening" with an account, rather than just throw money into a black hole for two years with no real way of checking up on it, especially with a postal-operated account.

The Shawbrook bank is a good deal, but no monthly interest. Also, I'm a bit wary of it as I've never heard of them before. I'll think about it.

Stompa

alanwsg wrote: »

The Shawbrook bank is a good deal, but no monthly interest. Also, I'm a bit wary of it as I've never heard of them before. I'll think about it.

They used to be known as Whiteaway Laidlaw:

http://moneyfacts.co.uk/guides/banking/who-are-shawbrook-whiteaway-laidlaw-bank/

opinions4u

alanwsg wrote: »

The Shawbrook bank is a good deal, but no monthly interest. Also, I'm a bit wary of it as I've never heard of them before. I'll think about it.

They were Whiteway Laidlaw Bank.

They're owned by RBS.