fixed-rate bonds - 6.70 per cent the peak?

MattB_4

I'm not sure i can see rates going much above the 6.70 level at the moment. All these rates are quite a way above the rate the banks and building societies will get on the money so making a loss. However it might actually be cheaper for some to raise funding this way rather than going to the wholesale market. I think you might see a lot of short-term high rates designed to serve a purpose for the bank/building society. Funding is reasonably complicated and I wont claim I have anything like the best understanding of it though!

free4440273

regarding the 35K safety margin guarantee on one's savings, if i were to spread the risk around in just the same institution, would this guarantee each particular pot of savings? in other words i would have five separate bonds with Scarborough: £35K x 4 and a £60K bond = £200k in total. Thanks.

baby_boomer

It wouldn't work .

The FSCS covers one saver per institution, irrespective of the number of accounts.

free4440273

baby_boomer wrote: »

It wouldn't work .

The FSCS covers one saver per institution, irrespective of the number of accounts.

thanks, that clears that up. hunt is on then...had a good look on the web this evening...Leeds, BMS, Yorkshire, Coventry, you name it...all have pulled rates on 6.70...all offering significantly below what they were even a month ago! sod's law and just my b***** luck! BofE: will you raise rates another .25 please? Thanks for all your help BB

Old_Slaphead

Anglo Irish are still offering goodish rates

free4440273

thanks OS, i will have a look at their website right now. in the meantime, all i can do is keep on praying for another .25 rate increase. yeah, right:rolleyes: thanks again.

edit: just had a look - three year bond is 6.60 gross. this is exactly what i mean; i just can't believe (well i suppose i can really!) how quickly many of the 6.70 rates have been pulled just in the last month. as always, savers are dealt a bitter blow. i'm probably sounding bitter myself! but really, what kind of incentive does this give one to save??? three years after my bond expires in october and i will 'only' be better off another £100 per month at these rates!!
I am looking for about 5.10 NET MONTHLY.

edit: just phoned up Anglo-Irish, they don't offer monthly interest bonds:mad:

mystic_trev

baby_boomer wrote: »

It wouldn't work .

The FSCS covers one saver per institution, irrespective of the number of accounts.

This is an interesting comment and always what I was led to believe. However, I heard recently (I can't find the source) that this is not necesserily so. From what I gather if the losses to the Banks and Building societies was deemed to be from one event e.g. sub-prime lending, you'd only be covered for the 'aggregate' amount of £35,000 despite how many institutions you'd spread it about.

Discuss?

free4440273

mystic_trev wrote: »

This is an interesting comment and always what I was led to believe. However, I heard recently (I can't find the source) that this is not necesserily so. From what I gather if the losses to the Banks and Building societies was deemed to be from one event e.g. sub-prime lending, you'd only be covered for the 'aggregate' amount of £35,000 despite how many institutions you'd spread it about.

Discuss?

if this is true, than that is despicable and derisory. Oh well, i might as well just shove my total £200K in one account. For me, this goes from bad to worse..."BofE, raise rates one more time, I beg of you; at least give me that":rolleyes:

bristolleedsfan

free4440273 wrote: »

"BofE, raise rates one more time, I beg of you; at least give me that":rolleyes:

u seem to be assuming that even if BOE rates were raised 0.25% that three year fixed rated would also increase 0.25%.

free4440273

bristolleedsfan wrote: »

u seem to be assuming that even if BOE rates were raised 0.25% that three year fixed rated would also increase 0.25%.

not quite, even i know things are not that simplistic:rolleyes: . basically, it's bizzare and/or just my bad luck that all of the 6.70 gross rates have been pulled in the last month. bottom line is this for me: i am looking for monthly interest of 5.10 net and cannot find this anywhere. had those multiple 6.70 rates stayed intact i would have been ok. I'm actually quite depressed about it for some reason. Savers just keep on getting a raw deal even though the govt. (inept as it is) should be encouraging more saving...