Yorkshire Bank

newcastleneil

Hi

I applied to the Yorshire Bank for their 2 year fixed rate bond paying 4% . I have all the paper work quoting this 4% rate from about a week ago ,but I never got round to posting my application form and cheque off yet .Now the rate has been cut to 3.87.Do you think I would get the 4% rate still if I posted it off to them or I could go in to my branch with my cheque and act daft and say i will go elsewhere .The paperwork I have states that I was going to invest £20000 with them

Any body got any views on this

buffman

Why not phone and ask?

newcastleneil

Ha
I never thought of that

opinions4u

Why should you get the good rate when other applicants don't?

I'd recommend creating a scene in branch.

Not because it will get you anywhere, but it will keep the staff entertained.

calypso_rhapsody

I vaguely recall that there was a period within which you had to fund the account and that if you did so you would get hte rate at the application date - but sorry i can't recall what the period was so ringing up seems the best option!

SallySunshine

If you have no joy, you could always try Shawbrook 18 month fixed term deposit at 3.9%.

https://www.shawbrook.co.uk/personal/save/

Decent rates are being withdrawn faster than you can blink:(

steady__eddie

I applied for one of these a couple of weeks ago in branch and the adviser told me that the rate had increased a bit, 4.08% gross, I didn't argue.
With hindsight, it seems a little strange in view of recent news, http://www.bbc.co.uk/news/uk-scotland-scotland-business-16919783

mike88

The owners of Yorkshire Bank are considering shutting up shop

http://www.guardian.co.uk/business/2012/feb/07/yorkshire-clydesdale-banks-future-under-review?newsfeed=true

LeoC

The account pays 4% per year, 4.08% is what you get per year (annual equivalent rate) if you reinvest the first year's interest and let it generate interest for another year.

So you start with £1,000. The first year you get 1% of £1,000, so £40. If you leave that £40 into your bond, the second year you get 1% on £1,040 which gets you £41.6 for a total of £1,081.6. This is equivalent to 4.08% per year.

So to get 4.08% you need to either have the interest reinvested into the bond, or get you interest paid only at maturity (after 2 years).

However if you take the £40 out after the first year (if you set it up so the interest is paid to another account), then you only get 4% AER.

This is the same effect of accounts that pay interest monthly which seem to reduce the AER, but in the opposite direction.

newcastleneil

opinions4u wrote: »

Why should you get the good rate when other applicants don't?

I'd recommend creating a scene in branch.

Not because it will get you anywhere, but it will keep the staff entertained.

Just to let you know
I got my certificate today and I did get the 4.08 rate :D:D