Co-op/Britannia Three New Fixed Rate Bonds

2010

Britannia and the Co-operative Bank have launched competitive new issues of their Fixed Rate Bonds. The 1 Year Fixed Rate bond is now paying 2.31% gross/AER and the 2 Year Fixed Rate bond is paying 2.50% gross/AER. The providers have also launched a new market leading 3 Year Fixed Rate Bond paying 3.00% gross/AER. All of the bonds can be opened with £1,000 in branch or by post, online.


http://www.britannia.co.uk/_site/channels/savings/savings-bonds/1yr-fixed-bond/index.html

Sceptic001

Thanks, 2010, that is very useful.

It appears that you can apply online via the Britannia website, but not the Co-Op.

Otherwise, the principal difference seems to be that Britannia pay interest annually whereas Co-Op pay on maturity.

EDIT: In fact "applying online" consists of filling in the form. Britannia then post you a form to sign and require a cheque (or transfer from existing Britannia account). A bit old-fashioned, but not a problem providing they don't do a Post Office and cut the interest rate in the meantime.

alanq

Sceptic001 wrote: »

Otherwise, the principal difference seems to be that Britannia pay interest annually whereas Co-Op pay on maturity.

Britannia pays interest either monthly or annually.

Co-op pays interest either monthly or on maturity.

Sceptic001

The Britannia application process is somewhat quaint. After an online application, they post you a form to sign and require ID (I haven't been asked for paper ID for several years). They refer you to their website for a list of acceptable forms of ID. I suppose when you offer a market-leading rate you can afford to make life difficult for savers.

Application now in the post. Developments keenly awaited.

Froglet

I have just applied for the same account.It states that if they can verify you online then they don't need ID sending.I have never been asked yet when applying online,hope it is the same with Britannia.

To be honest i am surprised the account is still open.I thought there would be a rush for this reasonable rate.

hra_2

I opened mine in branch on Friday, picking the Britannia rather than the Co-operative in order to have the interest paid annually not at maturity. It was all very efficient, took all of 5 minutes and all they needed was a cheque and proof of signature. The passbook arrived the following morning. As far as a rush is concerned, the staff smiled when clearly yet another customer came in to open a new bond and said this was all they had been doing all day.

ColdIron

hra, could you explain what the passbook is for?

hra_2

It is a simple card booklet showing the account type, term, number, commencement and maturity dates and the initial deposit. It describes itself as a record of all transactions and states that it has to be produced whenever an deposit or withdrawal is made or any other change to the account details. Of course with these bonds no withdrawals are permitted during the term. In the actual branch they also gave out a receipt.

alanq

hra wrote: »

Of course with these bonds no withdrawals are permitted during the term. In the actual branch they also gave out a receipt.

No further deposits are allowed either though the passbook could be presented each year to have added a record of any interest earned.

Existing customers take the passbook away with them so don't get a receipt.

The "book" is a small piece of card folded in half so there is little wasted paper.

talexuser

Is the annual 3 year interest added for compounding, or is it paid out?

Sceptic001

talexuser wrote: »

Is the annual 3 year interest added for compounding, or is it paid out?

Monthly is paid out to separate account by both Britannia and Co-op.

Britannia: Annual can be compounded or paid out.
Co-op: Interest is paid only on maturity, not annually.