Fixed Term Deposit Experience ...

meunier

I have had a variety of five year fixed term deposits that (sadly) are coming due as there is no way I could get anything like the interest they then were paying.

Even though I am a very simple sort, this time I don't think I'll be putting in four lots of five year fixed terms - even though I am totally risk averse. I do believe that after the better part of a decade things will have to get better in terms of savings. Perhaps I am wrong, but this time I will try to get a spread.

I'm looking at the lists on this site and see the new ones (e.g., Paragon, Charter, Secure ... even Vanquis) ... and wonder if people have had experience with these? Do you get a certificate? Have they been reliable? Is their customer service extant? (That said - with the others I have had I actually have had no interim communication with them as all worked fine, i.e., the monthly interest went into my account and I got annual statements.)

I have looked at reporting websites but they only list negative comments for the above. i wondered if these were - in the main - the whole picture. I suspect (well, perhaps I should say 'hope') that is not the case.

Much thanks for your kind consideration.

jimjames

If you're repeatedly doing 5 year fixed terms and don't need the money immediately, would it not make sense to invest at least some of it in S&S ISAs rather than cash? You are still exposed to risk keeping it all as cash - just different risks.

dunstonh

even though I am totally risk averse.

What risks? Repeating fixed term deposit rollovers for long term money puts the money at inflation risk and shortfall risk. Indeed, for the long term, this can be higher risk than using sensible investment risk. So, you may be inadvertently increasing risk rather than reducing it.

DrSyn

I am glad you at lest had the sense to do an internet search before thinking of placing your money with anyone.

If you are totally risk averse then you are going to have to get use to low returns until the government stops giving the banks free money.

Before giving money to unknown places, your second step should be to check they are regulated to do that type of business;-

https://register.fca.org.uk/shpo_searchresultspage?search=lloyds+bank&TOKEN=5zq3mgf0d8qk

Make sure they are covered by the fscs compensation scheme if something goes wrong:-
http://www.fscs.org.uk/what-we-cover/products/banks-building-societies/

They only way to know for sure about service etc, is by opening any account with them. The comments you read are helpful but do not give a full picture.

Example.

Negative comments might be

1. Posted by people with a grievance.
2. The rates offered are so good the number of applications swamp the staff dealing with them.

However rudeness to customers never has any excuse.

Ifts

meunier wrote: »

I'm looking at the lists on this site and see the new ones (e.g., Paragon, Charter, Secure ... even Vanquis) ... and wonder if people have had experience with these? Do you get a certificate? Have they been reliable? Is their customer service extant?

From the new ones you've listed I've used Paragon and Secure Trust Savings for fixed term deposits.

Both were easy to open, Paragon has online access and Secure send you out a certificate for your records (though once they are set up you don't really need access to them until account maturity).

I'm happy with the service received and would recommend both.

rizla01

I, on the other hand would not recommend that anyone use Paragon even if they were the last bank on earth.

Incompetent, ill-informed and rude staff are my initial reasons.

Not ONE CSR but three of the five I have had to deal with. Terrible experience - And no better having been appologised to (Half) by Stephanie Stephanie Moore, one of the managers.

I couldn't wait to withdraw my 70k savings from them to put with a professional company.

Dear Mr *****,

We have listened to your complaint

Thank you for making us aware of your complaint on 10 November regarding your account with Paragon Bank. We are sorry for any inconvenience you may have been caused and appreciate the time you have taken to bring this issue to our attention.

In order to resolve your complaint, we have ensured feedback has been provided to staff and your document returned to you via recorded delivery today. We hope this will resolve the issue to your satisfaction.

DrSyn

rizla01

In post #6 you mention CSR. What is it short for?

eskbanker

DrSyn wrote: »

rizla01

In post #6 you mention CSR. What is it short for?

I imagine it'll be Customer Service Representative....

bigadaj

eskbanker wrote: »

I imagine it'll be Customer Service Representative....

I thought they were all executives now.....

coyrls

bigadaj wrote: »

I thought they were all executives now.....

Consultants at minimum.

John259

I've used Paragon, but only online. No problems.