fixed-rate bonds - 6.70 per cent the peak?

free4440273

thanks both - i will give them a ring by phone this week. very kind of both of you for the advice. i'll keep the thread 'open' - if people don't mind - in case people hear of other good-paying bonds. i have until october to decide, when my bond with NW expires. c'mon BofE, raise rates by another .25 please:rolleyes:

bristolleedsfan

baby_boomer wrote: »

Scarborough never started :rotfl:

in 2006 i sent monthly reg savers cheques by post to scarborough, scarborough sent transaction advices back first class, in may 2007 i organised a BACS withdrawal, scarborough sent this transaction advice second class.

free4440273

they seem to offer a slightly higher rate on the Direct option (as opposed to branch option). what exactly is Investments Direct? sounds decidedly dodgy, does this mean there is nobody to contact in case of an enquiry? still a good rate on offer, but just slightly concerned about the service on offer - and they don't provide you with a bond certificate?? Thanks.

baby_boomer

Investments Direct is part of Scarborough BS. They're only dodgy if the BS itself is dodgy.

I personally wouldn't worry about the lack of a certificate, and on a fixed rate bond the only customer service you need is at the start and at the end after 3 years.

If you are worried about losing the rate on offer at any provider, then send your cheque next day Special Delivery.

free4440273

thanks again BB, you have been very generous with your advice. you are right, one does not really need customer service during the interim of the bond. i WILL give them a ring (have not even done so yet) just to confirm a few details and probably will end up going with them. i have until october to decide anyhow...thanks again

free4440273

oh, i just remembered, the reason i preferred to have a certificate of sorts was due to when i complete my R40 tax return in April 2008: i am not working at all so i should not have to pay tax on all the interest earned from the bond. I basically need some kind of evidence i suspect when i complete the R40.

baby_boomer

free4440273 wrote: »

oh, i just remembered, the reason i preferred to have a certificate of sorts was due to when i complete my R40 tax return

One of the advantages of saving with Scarborough BS is that they automatically send you a tax certificate on past interest earned at the same time as your annual statement.

Why others don't follow this lead is beyond me . It doesn't cost them anything because they are communicating with savers anyway. And it saves many of Scarborough's customers time & money .

free4440273 wrote: »

thanks again BB

You are most welcome.

free4440273 wrote: »

i have until october to decide anyhow

Post again nearer the time of your investment. The medium term fixed rate scene is constantly changing.

free4440273

baby_boomer wrote: »

One of the advantages of saving with Scarborough BS is that they automatically send you a tax certificate on past interest earned at the same time as your annual statement.

Why others don't follow this lead is beyond me . It doesn't cost them anything because they are communicating with savers anyway. And it saves many of Scarborough's customers time & money .

You are most welcome.

Post again nearer the time of your investment. The medium term fixed rate scene is constantly changing.

sorry for the late reply BB, again thanks for the advice and info . yes, i might post nearer to my expiry date of october if you don't mind. it's quite a large sum of monies you see (well, to me anyway) of £200K so it really does matter to me what the monthly interest is and the reputability of the BS. thanks very much. i'll keep the thread 'open'

baby_boomer

I personally would look to spread £200K ( I wish ) around more than one institution. Remember the Financial Services Compensation Scheme guarantees 90% of your money up to £35K max invested in each bank or BS in a worst case scenario.

There's nothing wrong with Scarborough AFAIK for £35K, but it's never claimed to be the most heavily capitalised building society (capital backing is always a useful reassurance in the event of world financial meltdown of the sort our generations haven't witnessed).

Don't take this the wrong way. I'm not particularly worried by the current problems in world markets.

free4440273

baby_boomer wrote: »

I personally would look to spread £200K ( I wish ) around more than one institution. Remember the Financial Services Compensation Scheme guarantees 90% of your money up to £35K max invested in each bank or BS in a worst case scenario.

There's nothing wrong with Scarborough AFAIK for £35K, but it's never claimed to be the most heavily capitalised building society (capital backing is always a useful reassurance in the event of world financial meltdown of the sort our generations haven't witnessed).

Don't take this the wrong way. I'm not particularly worried by the current problems in world markets.

once again, thanks for the really excellent info BB. yes, it is an awful lot of money and i need the monthly option because it 'contributes' towards my mortgage (and i've been made redundant recently). this was one of my concerns and that's why i have not ruled out reinvesting with nationwide (even though their rates are dire by comparison) - at least they are well known and favourably well funded (as far as i know). if i do spread the risk around, i will have to ensure the total monthly interest equates to shoving the monies into just one account, if you seen what i mean. i better do some calculations! again, much thanks for all the advice - it's really appreciative.