Punjab National Bank - fixed rate deposits

Kippaxman_2

Well what a waste of time. I took on board the PNB's dodgy website and all the security issues so I made a special trip to London armed with all the necessary identity documents for my wife and myself together with the application forms duly signed. I was going to open up a 3 year fixed rate bond paying interest of 4.70% per annum. Half way through the interview I was told that the rate of 4.70% was tiered over the 3 year period and the average rate was 3.5%!

I asked why this was not made clear on their website and they said that it must be out of date. Unbelievable. Is it actually legal to have false information of this nature on their site??

Kippaxman

RetiredInThailand

Kippaxman wrote: »

. Half way through the interview I was told that the rate of 4.70% was tiered over the 3 year period and the average rate was 3.5%!

I asked why this was not made clear on their website ....

Looks pretty clear to me:

Premium Fixed Deposit Interest Rates 1st Year --- 3.00% 2nd Year --- 4.20% 3rd Year --- 4.70% 4th Year --- 5.30% 5th Year --- 5.80%

It also seems pretty clear that lower rates apply to deposits of under GBP100K:

Interest Rates for Amount below 100000 (in GBP, USD and Euro) valid w.e.f 01.12.2011 (% pa)


Duration GBP USD EUR

AER AER AER
1 Month to < 3 Months 0.75 NIL NIL
3 Months to < 6 Months 1.25 1.25 1.25
6 Month to < 1 Years 1.75 1.75 1.75
1 Year to < 18 Months 3.00 2.25 2.75
18 Months < 2 Years 3.25 2.25 2.75
2 Year to < 3 Years 3.50 2.75 3.00
3 Year to < 4 Years 4.00 3.00 3.25
4 Year to < 5 Years 4.25 3.25 3.25
5 Years 4.50 3.50 3.50

It also seems pretty clear that the website is not out of date.

It also seems pretty unlikely that a bank is going to be offering 4.7% on 3-year deposits when the best available 5-year rate from any bank is lower than that.

Porcupine

Hmm... this is interesting as there's a Euro account based in the UK where the rate is actually a first class citizen compared to GBP accounts (otherwise best EUR rate in the UK I've seen is about 0.2%).

But everything else is making me want to run away very fast

RetiredInThailand

Porcupine wrote: »

But everything else is making me want to run away very fast

I don't see any real problem as long as it comes under the UK deposit protection scheme. I wouldn't put more than 80K (allowing for interest) with them though, which I have done with some other UK banks.

nexstarneil

This question has been asked before but I'm not sure it's been answered directly. There are several 'fixed rate deposit' products e.g at present Festival season 3 Years --- 4.10%.

To get that rate do you have to deposit over £100k? and secondly is the interest payable annually or at the end of the term?

thanks for anyone who knows for sure rather than interpreting the web site which I've tried to do myself.

soulsaver

nexstarneil wrote: »

This question has been asked before but I'm not sure it's been answered directly. There are several 'fixed rate deposit' products e.g at present Festival season 3 Years --- 4.10%.

To get that rate do you have to deposit over £100k? and secondly is the interest payable annually or at the end of the term?

thanks for anyone who knows for sure rather than interpreting the web site which I've tried to do myself.

Call them, if you like what they say ask where you can find that info formally stated. If you cant find it in formal statements (T&Cs) on the webby ask them to email you a copy of it. Or ask them to put it put it in writing in an email.
They did for me. But a copy of T&Cs with your questions covered is best.

It's not clear from their web details but that 'too good to be true' ('cos people misread and/or miss-report it) progressive fix has another benefit that they confirmed in writing - you can withdraw without loss of interest and penalty free on the anniversary dates.

So in the (increasingly unlikely) event of interest rates becoming better in the period you can get to your funds without loss.

Even the 3.0% first year fix wasn't that good a couple of months ago - you could get 3.6% at Cov BS & Cahoot - but 3% for a year with an option for 4.2% next year is starting to look to good to miss... doubt wont be around long, now.