Kent Reliance Fixed Rate Bond

buffman

I am thinking of opening a Kent Reliance 1 year bond. However I have been put off by the clause on their website which states:

'If you request a closure at maturity, your cheque will be posted to you on the second working day after maturity. Alternatively, the funds will be sent by bank transfer (BACS/Faster Payment) reaching your account within five working days after maturity.'

It appears that I may have to wait up to 5 days on maturity for my funds while at the same time probably receiving no extra interest. Does anyone have experience of this?

Ifts

The KRBS maturity option of the BACS/Faster Payment says 'within five working days' but at a guess I'd say the money would land in the receiving account quicker .

Thats my experience of other fixed rate bonds that Ive had mature and the funds have landed in the receiving account within the next day or two.
Some even return the maturing funds via 'Chaps' payment on the same day (thinks its Close Brothers or Rothschild Reserve) foc.

buffman

I was just wondering whether anyone has had experience with Kent Reliance on this issue.

coyrls

I had a KRBS bond. I don't remember there being an issue with the time to transfer money when it matured but I wouldn't have worried too much about the loss of 5 days interest, so may not have noticed. I think they are just covering themselves for BACS. I guess they use BACS if the sum exceeds the upper limit for Faster Payments. If the loss of 5 days interest makes an alternative a better deal then go for that.

innovate

How much is 5 days loss of interest? Particularly since there aren't any great rates you would get anywhere..........it would be less than £50 before tax if you had £100,000 and the interest rate in the target account was 3% - - a rate you won't get anywhere these days for this sum of money.