Halifax 1 Year Bond 6.50%

kanchhelskis

Dear All From Friday Halifax Will Launch A 1 Year Bond Paying 6.50%, With A Minimum Deposit Of 500 Pounds, By The End Of The Year Think We Could See 7% 1 Year Bond.

Mr_Mumble

For those aged 50+ Saga are offering 6.58% on their 1 year bond from today. Minimum deposit is only £1.

Fixed rates should rise again after news that the Bank of England only voted 5-4 to keep rates on hold in June. Broad money supply was also up more than economists expected.

mary

Anyone got a list of the top 10 1 year bonds?

Old_Slaphead

Mr_Mumble wrote: »

For those aged 50+ Saga are offering 6.58% on their 1 year bond from today. Minimum deposit is only £1.

Fixed rates should rise again after news that the Bank of England only voted 5-4 to keep rates on hold in June. Broad money supply was also up more than economists expected.

Saga FRB is, I believe, operated via Birm Mids. They repay bonds by chq which takes several days (in my experience) to arrive. This results in a loss of interest, when compared to bank transfer, of between 0.1-0.2%.

Given the choice, at this stage as it's available online via websaver, I think the Halifax deal will be better (for anyone able to use online banking of course).

When is Birm Midshire going to get it's act together on transfers??

KingKenny

http://www.askbm.co.uk/savings/t/fixed/intro.asp

Year Fixed Rate Bond - Annual Interest Rate
£1 minimum investment Access not permitted for term Annual interest rate
Gross/AER: 6.40%
Net: 5.12%


1 Year Fixed Rate Bond - Monthly Interest Rate
£1 minimum investment Access not permitted for term Monthly interest rate
Gross p.a: 6.22%
Net: 4.98%
AER: 6.40%

http://forums.moneysavingexpert.com/....html?t=473175

Derbyshire Building Society 6.45% fixed rate bond issue 146

1) They do not pay interest on BACS payments into this account until the day after it is recieved into your account, i.e. the fourth working day!
2) They do not pay interest on CHAPS payments into this account until the day after it is recieved into your account, i.e. the second working day!
3) On maturity, they do not allow CHAPS payments to withdraw your funds, you can only make, a cash, cheque, or BACS withdrawal.
It would be a good thing to have a thread where it outlines all of the banks and building society rules on CHAPS and BACS, as it seems to differ so much and could cost you a considerable amount of money in lost interest, should you not be aware prior to opening an account.


I do not know what the Midshires rules are in relation the the above?

Moorepart

Strange. Moneyfacts was showing this as 6.5% as of yesderday

I believe this is the best 1 year fixed rate deal available at the moment, and Points to where banks think interest rates are going...:j

IGK

Market Gilt yields have been rising recently and they're a good guide to where fixed-term deposit rates are going. Basically the market is now above 5.75% out to 5 years - yesterday's surprise news of the 5/4 MPC vote, with Mervyn King being outvoted, helped push yields up further. If this trend continue I'd expect to see higher fixed term bond rates.
Good site to check market yields HERE

ashm1

kanchhelskis wrote: »

Dear All From Friday Halifax Will Launch A 1 Year Bond Paying 6.50%, With A Minimum Deposit Of 500 Pounds, By The End Of The Year Think We Could See 7% 1 Year Bond.

Can you still get at these bonds if you hit a cashflow problem as the economy slows down ?

derrick

KingKenny wrote: »

1) They do not pay interest on BACS payments into this account until the day after it is recieved into your account, i.e. the fourth working day!
2) They do not pay interest on CHAPS payments into this account until the day after it is recieved into your account, i.e. the second working day!
3) On maturity, they do not allow CHAPS payments to withdraw your funds, you can only make, a cash, cheque, or BACS withdrawal.
It would be a good thing to have a thread where it outlines all of the banks and building society rules on CHAPS and BACS, as it seems to differ so much and could cost you a considerable amount of money in lost interest, should you not be aware prior to opening an account.

You are correct about points 1 & 2, however unlike other institutions, they pay interest, up to and including the day of withdrawal:-

"How interest is calculated" ( PDF)
We generally calculate interest on a sum you invest
from the day after we receive it, up to and including the
day you make a withdrawal.

So they have just moved the goalposts from one end to the other end as most of the others don't pay interest on the day of withdrawal.

They also pay interest on cheques from the day after deposit, even if day of deposit is a Friday,i.e. no waiting for "working days", at least that is what I have just been informed by some one in CS who appears to be knowledgeable and did go and check with a manager.

KingKenny

I am correct on point 3 aswell. Which could cost you up to three days lost interest?

3) On maturity, they do NOT allow CHAPS payments to withdraw your funds, you can only make, a cash, cheque, or BACS withdrawal.


Anyone know how Birmingham Midshires compare to the three points?

derrick

KingKenny wrote: »

I am correct on point 3 aswell. Which could cost you up to three days lost interest?

3) On maturity, they do NOT allow CHAPS payments to withdraw your funds, you can only make, a cash, cheque, or BACS withdrawal.


Anyone know how Birmingham Midshires compare to the three points?[/quote



I did not mention point 3 , but a lot of institutions do not allow CHAPS,(depending on company and/or investment), and BACS cash or cheques is the same for all institutions.

However I have just spoken to Derbyshire CS and they inform me that prior to maturity, a maturity form will be sent out with details of what you want them to do with the maturing funds, and after going to check, she returned and said CHAPS is one of the methods available , but don't forget that CHAPS incurs a fee, that, depending on the amount withdrawn, could be in excess of the 2/3 days lost interest via BACS.