Nationwide bond maturing - low rate offered!

nilrem_2

le_loup wrote: »

Hedge your bets.
Put half in the best fixed and the other half in the best instant access. Then if rates go up you win on half, down and you lose on half.

I have considered this TBH but to get a Fixed even to match the Natwest 2.85% means a 3 year tie up, surely a better rate will be available in that time? :eek:

nilrem_2

Regarding the Indian Banks, I have looked and their rates are attractive but after my scare with Icesave I am very dubious, you could say I was 'Chicken'!

gozomark

nilrem wrote: »

I have considered this TBH but to get a Fixed even to match the Natwest 2.85% means a 3 year tie up, surely a better rate will be available in that time? :eek:

I can remember so many discussions on this board like this over the last few years where some people insisted fixed rate interest rates would go up because they were lower than they had been historically, which went entirely against the reality that
1. base rate was and is likely to remain low for years
2. as the banks were able to borrow money more cheaply, first through QE and now through direct borrowing from the government, the spread banks would have to pay customers would narrow

gozomark

reality is, with base rate at 0.5%, inflation at 2-3%, and the economy bumping along the bottom, the only way fixed rates will get significantly more attractive for a couple of years is if there is another scare about banks going bust

innovate

nilrem wrote: »

Regarding the Indian Banks, I have looked and their rates are attractive but after my scare with Icesave I am very dubious, you could say I was 'Chicken'!

Totally different circumstances. Icesave was never covered by the FSCS.

Leaving aside that the indian economy and financial institutions are extremely unlikely to ever go the way the icelandic economy went: the indian banks are FSCS covered, and £85K in them is just as safe as £85K in Natwest, Barclays, Llloyds, Nationwide etc etc etc

nilrem_2

innovate wrote: »

Icesave was never covered by the FSCS.

Are you quite sure about that?
I am fairly certain that deposits were covered by the FSCS at the then lower rate of around £32k?

Although Icesave was a Icelandic bank they did operate from the UK and was run by a UK bank/BS.

However I do take your point about safety but I am still dubious.

Any others here have money with Indian banks?

badger09

innovate wrote: »

Totally different circumstances. Icesave was never covered by the FSCS.

Leaving aside that the indian economy and financial institutions are extremely unlikely to ever go the way the icelandic economy went: the indian banks are FSCS covered, and £85K in them is just as safe as £85K in Natwest, Barclays, Llloyds, Nationwide etc etc etc

Sorry innovate, Icesave was covered by FSCS up to £50k but the Treasury increased that guarantee to 100% of UK retail deposits - see 28 extract from FSCS FAQ

http://www.fscs.org.uk/uploaded_files/Publications/Icesave_FAQs_-_bzlbowohfmkofuz.pdf

innovate

nilrem wrote: »

Are you quite sure about that?
I am fairly certain that deposits were covered by the FSCS at the then lower rate of around £32k?

Actually, yes, some of the deposits were covered under FSCS:

1. the first £20,887 were covered under the "Deposit Guarantee Directive", an icelandic equivalent to the FSCS guarantee which proved utterly useless at the time since Iceland refused to pay anything to non-icelandic nationals.
   .
2. £20,887 to £50,000 was covered under FSCS.
   

Alistair Darling announced the day after the Icesave collapse that all UK Icesave Retail customers would get all their money back, and all the refunds were administered by the FSCS: http://www.fscs.org.uk/industry/determinations/icesave/. It was all paid from a loan HMRC gave to the FSCS.

As far as I know, the icelandic scheme has still not repaid any of the money to the UK.

badger09

Strange - my reply with quote seems to be broken


I too had money in Icesave & Kaupthing Edge at the time of their collapse :eek:

Icesave had opted for the passport scheme but was still a member of the FSCS

http://blog.moneysavingexpert.com/2008/04/01/icesave-how-safe-are-your-savings-facts-and-myths/

Are we splitting hairs? If so shall we stop now and play nicely :j :rotfl: :j

nilrem_2

badger09 wrote: »

Are we splitting hairs? If so shall we stop now and play nicely :j :rotfl: :j

Yeah let's get back to my predicament! I need the money! Lol :T