BM Savings - 2 year Fixed Rate ISA - 4.05% AER

codetown

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Back to the original post...

I start off this thread to discuss the new

BM Savings 2 year fixed rate ISA
http://www.bmsavings.co.uk/savings/isa-savings/773/2-year-fixed-rate-isa-yearly-interest.aspx

It is a new fixed rate ISA paying 4.05% AER in either the monthly or yearly version.
Features:
- 2 years from the date of application
- Accepts transfers in
- Accepts new payments (until it is open)
- Online application
- Postal issue
- Early withdrawal/transfer allowed with 90 days charge (if remaining term is less than 1 year) or 180 days (if remaining term is more than 1 year).

codetown

Some Advantages:

- its interest is slightly better than the (now) very popular 2 year FRISA from Santander.
- one major advantage (apart from the interest) looks to be the end date of this ISA: if you apply (say) on the 20 March 2012, it will end on the 20 March 2014 and not on the 1st May 2014 (as the Santander ISA). So you will not loose the critical end March/April period for your next application.
- Money can be withdrawn if this becomes necessary (even if with a penalty, still better than nothing!).
- It pays interest either monthly or yearly and the interest can go to the account itself or elsewhere.

Some Disadvantages:

- Postal operation only
- Not sure if you can deposit new money in the 2012-2013 tax year (yes if they don't remove the account early, but it is not 100% sure as in the Santander case).
- New money in only by transfer from a BM Savings account or a check (apparently not from an external account... so I guess this account won't have a sort code/account number to feed in from outside).

codetown

I am tempted to apply to this instead of the Santander FRISA.
Now the questions:

1) I have no experience with BM Savings. Any comments from someone using them?

2) I don't like too much postal only accounts. Does anyone know if they have some sort of telephone backing/servicing?

3) Has anyone gone trough the online application to check if everything is done online or you need to print off the application and send by post at the end?

4) From your past experience what is the likelihood of BM Savings removing this ISA early, i.e. before the new start year (I have money ready to get in on the 7 April + a transfer; I wish to have both on the same ISA)?

SnowMan

codetown wrote: »

1) I have no experience with BM Savings. Any comments from someone using them?

I've used them in the past but not recently, and they were always very reasonable. No concerns there. I would have a definite preference for a BM rather than a Santander account.

codetown wrote: »

2) I don't like too much postal only accounts. Does anyone know if they have some sort of telephone backing/servicing?

With a fixed rate account postal only access is not so much of a problem as there is no real need to look at your account during the fixed rate term. Problems seems to be at the end of the account (although if you are going to transfer it elsewhere don't see that it matters too much as you just send a transfer form to the then new ISA provider) where it says in their terms and conditions

END OF THE FIXED RATE PERIOD
7.1 At least 14 days before the end of the fixed rate period we will write to you and ask you for your instructions about what you’d like to do with your money on maturity. If we do not hear from you, we’ll put your money into a postal easy access ISA account.

codetown wrote: »

3) Has anyone gone through the online application to check if everything is done online or you need to print off the application and send by post at the end?

Haven't gone through it but the indication is that the on-line application creates an application form that you have to post on along with your cash ISA transfer form if applicable. Until someone applies can't really say.

codetown wrote: »

4) From your past experience what is the likelihood of BM Savings removing this ISA early, i.e. before the new start year (I have money ready to get in on the 7 April + a transfer; I wish to have both on the same ISA)?

This account is bound to be very popular as it is the best rate 2 year rate available and as you say it is a genuine 2 year period. I think it is probable it will not be about for next tax year subscriptions.


Other thing to say is that account starts from date of first deposit. This is relevant as many will be looking for the account to mature as early as possible in March 2014 (say) so that if the ISA season pantomime is still in operation they can snap up the then good offers available.

opinions4u

codetown wrote: »

- Postal operation only

But if your plan is just to leave the money there for 2 years staring at a screen with a balance on isn't the be all and end all.

- New money in only by transfer from a BM Savings account or a check (apparently not from an external account... so I guess this account won't have a sort code/account number to feed in from outside).

It will almost certainly have a sort code, account number and reference number that will allow additional deposits once up and running (until the product is pulled). They usually use a Barclays sort code that the funds go through.

The existing account / cheque requirement helps them to meet their Anti-Money Laundering obligations without you having to send important documents through the post.

Does anyone know if they have some sort of telephone
backing/servicing?

Their phone service on postal accounts is usually excellent.

goRt

codetown wrote: »

4) From your past experience what is the likelihood of BM Savings removing this ISA early, i.e. before the new start year (I have money ready to get in on the 7 April + a transfer; I wish to have both on the same ISA)?

For the avoidance of doubt, the UK tax year runs from 6/Apr - 5/Apr each year, so you should target 6/Apr/12 not 7/Apr/12 - you lose a day :rotfl:

goRt

Applied over the phone, took 6 minutes, transfer forms posting to me, 14 days to return the forms if the ISA closes today!

New_York_No1_fan

codetown wrote: »

I am tempted to apply to this instead of the Santander FRISA.
Now the questions:

1) I have no experience with BM Savings. Any comments from someone using them?

2) I don't like too much postal only accounts. Does anyone know if they have some sort of telephone backing/servicing?

3) Has anyone gone trough the online application to check if everything is done online or you need to print off the application and send by post at the end?

4) From your past experience what is the likelihood of BM Savings removing this ISA early, i.e. before the new start year (I have money ready to get in on the 7 April + a transfer; I wish to have both on the same ISA)?

I throughly recommend B Midshires as I have held cash ISA's and savings with them for several years.

My last Isa , which I've recently transferred to Northern Counties for 3.7% with 99 days notice to close, I am now considering moving back to BM for the better rate. Don't necessarily need the early withdrawal facility however maxed out for 11/12 and hoping it will still be available for 12/13.

Despite being a postal account, you can get lots of help from them over the phone.
They are extremely efficient, past accounts opened in minimal time.
Even put them to the test when transferred 10/11 Isa to another provider who then messed me about in the 14 day cool off period, so subsequently transferred straight back to BM without a hitch.

I'm gonna ring them and see what the situation is re 12/13 investments.

A._Badger

Another vote for BM, who've always seemed very good in the past.

Sadly, I jumped too soon and put two old ISAs with Lloyds at 3.7% I wish now I'd hung on.

Cypherite

The top part of that page says it is for investments for the tax year commencing 6th April 2011. That suggests you won't be able to put anything in for the tax year commencing 6th April 2012?

codetown

Cypherite wrote: »

The top part of that page says it is for investments for the tax year commencing 6th April 2011. That suggests you won't be able to put anything in for the tax year commencing 6th April 2012?

I think this account was introduced last year, but the interest rate has been upped now to attract the ISA investments, so the wording might reflect that.

In the T&C they say you can put more money until it is an open issue. At present I do not know if they will keep it open to April 6th or not.

A call to them might clarif this. If anyone does it, please post the result!