2010 Clydesdale 5 year ISA Bond FURTHER Lock In

Genny_2

Just a reminder to the many who took out the above ISA Bond in 2010
Your money will be automatically locked into a new rate rather than placed in an easy access pot if a six-week window of opportunity to move it is missed. :eek:

Savers' money will now automatically be re-tied into a new fixed rate 'closest to the original term' when a bond matures.
http://www.thisismoney.co.uk/money/saving/article-2032595/Clydesdale-locks-fixed-rate-bond-savers-in.html



[FONT=&quot]My ISA is due to mature on 31st March but I know many MSE members applied before me.[/FONT]


[FONT=&quot]Genny
[/FONT]

Froggitt

Thanks. Ive got this account maturing soon. However, they don't have any fixed rate ISA bonds to transfer into. A slight flaw in the plan.

TCA

Yes. The best they can catch you with is their 40-day notice ISA, which wouldn't be the end of the world, although as mentioned on another thread, it does have some sneaky withdrawal terms if you can't give the notice. I suspect anyone in dire need of their cash or in a hurry to transfer to another provider, is probably on the ball with the maturity date.

Froggitt

Having dug out my old paperwork, it appears its not exactly a five year bond, its a 5% fixed rate bond that matures on 31st March 2015, ie in six weeks time, rather than five years from opening date.


The 40 day notice account isn't that shabby, especially if you expect rates to rise in a year or two, and you don't want to be locked in to a five year rate with someone like Coventry BS paying not much more than 2%.

Genny_2

Froggitt wrote: »

Having dug out my old paperwork, it appears its not exactly a five year bond, its a 5% fixed rate bond that matures on 31st March 2015, ie in six weeks time, rather than five years from opening date.


Thanks for the clarification


Genny

Froggitt

Mystery solved. Its a 5 year fixed at 2.7%. Cant find details on their website though.

TCA

Got the letter today. Cheapskates didn't even include a reply-paid envelope for the maturity instructions. Early access charge for withdrawal or transfer out with over 273 days to maturity is 180 days interest. I think I'll go with the 40 Day Notice version.

freelunchtoday

au contraire mon ami!!

I think the 2.7% is a good rate, best I can find for 5 yr bond.

TCA

freelunchtoday wrote: »

au contraire mon ami!! I think the 2.7% is a good rate, best I can find for 5 yr bond.

If you were holding for two years or more, the higher rate (versus 2% for £24k in the notice account), would cover the exit charges. There may of course be higher rate products on offer by then. Or not.