Shawbrook Bank 2year 3.8%

zx81_basic

I have 69k in 2x bonds, one ends 25th Aug (tomorrow) and one at the end of the month, i have applied (online 21st aug) for shawbrook 2yrs @ 3.8%.
my plans is to put half in - then the other half a week later. I got confirmation via email. im still waiting on the confirmation through the post.
is it possible to apply for another fixed rate account somewhere else incase this one dosent come through in time,
so i have something to fall back on without losing days interest?
the maturing dates for both bonds are on saturdays so they wont be in my account until monday.
never heard of shawbrook but its listed on MSE and covered by FSCS.

I'm unemployed, I don't pay any Tax (R85 form used), and don't claim any state benefits. would I be entitled to help elsewhere?
I was made redundant years ago (company closure) and had to sell my house and move back with my parents (pensioners) until i find a job.
i have used my ISA allowance and need an income from these bonds, so i keep money to last me the year, then take out the interest yearly.

Is there any solutions in my situation? I thought about buying a house to rent but as Ive seen here on the forums, this could cause a lot of problems regarding bad tenants, fees, etc..

Advice is greatly appreciated
zx

sorcerer

With that amount of money it's seems very unlikely you can claim anything fromt he goverment, I think they tend to have limits of 6000 or 16000 pounds.

calypso_rhapsody

I think probably a bit ambitious to expect Shawbrook to have got postal confirmation to you in 3 or 4 days. If you are have the email i would say you don't need to be too concerned - based on my own experience of opening accounts with them. But they possibly have the right to withdraw the account at any time and to require you to deposited the money by a certain time (check the terms). If you are anxious then yes you can open another bond elsewhere, which would lapse if you fail to fund it - did that with Yorkshire not that long ago though for different reasons.

Unless you want to take the risk of equities (maybe via a S&S ISA) i think that what you are doing is probably the way i would go - personally not keen on the hassle involved in BTL property.

You could think about putting some of the cash into a longer term bond - say 3, 4 or even 5 years - that should improve return (marginally!)

zx81_basic

Thanks for the reply's, put my mind @ rest :-)

I'm with Nationwide, and thinking about setting up another account with them (e-Savings Plus 2%), so when the bonds mature I can quickly transfer them from my FlexAccount to this account until they are ready to be transferred to the new bond. This will give me more time to consider my options.
does this seem like a good idea? Would I earn the 2% each day,
would there be charge for doing this? I'm not very good at reading long T&C's gets very confusing :-(

Thanks

innovate

Interest rates are generally expressed as annual rates, and you need to use the AER % to compare like with like.

The AER on the Nationwide e-savings Plus is 2% if you make no more than 5 withdrawals a year. That's a pretty terrible account to start with, and the AER slumps to a disgusting 0.1% AER if you make 6 or more withdrawals.

There's plenty of instant access accounts with better interest rates, and without ridiculous withdrawal restrictions. Shop about

Finally, you have to get better at reading T&Cs if you aren't good at it now. You accept the T&Cs when you open an account, you need to be happy that they suit you.

zx81_basic

Thanks for your reply innovate, basically I will be using the 2% just for a few days or so until I get my bonds transferred.
I'l have another look for better rates as you suggest and yes I will start to read and take in the T&C's

oldvicar

zx81_basic wrote: »

...

I'm unemployed, I don't pay any Tax (R85 form used), and don't claim any state benefits. would I be entitled to help elsewhere?
I was made redundant years ago (company closure) and had to sell my house and move back with my parents (pensioners) until i find a job.
...
zx

Are either of your parents in receipt of a disability allowance e.g. attendance allowance? if you are looking after them you might be entitled to a carers allowance.

Are you jobseeking? By actively signing on you might get your national insurance record credited (towards your state pension entitlement), even if you aren't entitled to a cash payment.
Are you jobseeking? Although you

Ifts

zx81_basic wrote: »

is it possible to apply for another fixed rate account somewhere else incase this one dosent come through in time,
so i have something to fall back on without losing days interest?

The AA have got a 3 year fix as opposed to the 2 year offering from Shawbrook, but it does offer a slightly higher rate @ 4%:

http://www.theaa.com/savings/fixed-rate-savings-accounts-products.html

Withdrawals for the AA - 3 Year Fixed Rate Savings Account @ 4% are allowed subject to a charge.

T-b-P

zx81_basic wrote: »

I have 69k in 2x bonds .....

zx

Don't take this as having a go but if you got £69K and you're living with your folks so have a roof over your head, then there are many many other people more deserving of state help. I wouldn't be happy that my taxes are going to support someone with that much in the bank.

zx81_basic

oldvicar wrote: »

Are either of your parents in receipt of a disability allowance e.g. attendance allowance? if you are looking after them you might be entitled to a carers allowance.

Are you jobseeking? By actively signing on you might get your national insurance record credited (towards your state pension entitlement), even if you aren't entitled to a cash payment.
Are you jobseeking? Although you

not on jobseekers, and parents not on any allowance apart from pension. I did hear a while back I should be on jobseekers to keep my NI credited, and again was told as ive worked most of my life the NI credits will be upto date anyways, but i will look into this more.
Thx

zx81_basic

T-b-P wrote: »

Don't take this as having a go but if you got £69K and you're living with your folks so have a roof over your head, then there are many many other people more deserving of state help. I wouldn't be happy that my taxes are going to support someone with that much in the bank.

I wasn't expecting any more monies, just wasn't sure regarding NI credits and pensions and yes I agree with you not being happy paying to support people who dosent need it, Ive worked for most of my life and wouldn't be happy myself paying people who didn't need it :-(