Over 50y/o ? Saga paying 7.14% AER Fixed for 1yr via monthly interest

mk-donald

Thanks to the posting at
http://forums.moneysavingexpert.com/showpost.html?p=6348792&postcount=7
for revealing this - think it's worth drawing to everyone's attention as highest seen in recent memoy.

Saga, via Birmingham Midshires (ie Bank of Scotland plc for those counting authorised firms for £35k compensation limits) are currently offering a 7.14% AER monthly interest on £1+ fixed for 1yr - see
http://www.saga.co.uk/finance/spf/home_fixed_rates.asp

Of course those high 1yr AERs are never fully obtained as the interest is paid OUT of the a/c to you every month, and that full AER would only be obtained if you could obtain that same rate (for the remaining 11/10/9/8/7/6/5/4/3/2/1 months) they've already applied for the interest you received. However you get the full 6.92%/pa applied each month, and can earn some interest on the paid out interest for the rest of the term.

(And 6.82% AER for monthly interest on a 2yr fix.)

noh

To get this rate they need to receive your application form by the 26th September.

Nigel

roddydogs

in view of recent events, is anyone prepared to tie their money up even for just 1 year?

rarrarrar

The closing date for the 6.92% gross bond is 26th OCTOBER.
It appears that SAGA recalculate interest rates monthly based on average of 5 highest listed by Moneyfacts on I think the 13th, for applications MADE after the 20th the rate is then available until the 26th of the next month .

Note the overlap period 20th- 26th when application made the last month are paid at the old rate and applications made after the 20th are paid at the new rate.

Application is by telephone only.

noh

If the closing date is 26th October why does the Saga web page say "to receive the rates quoted we must receive your application by 26th September 2007" ?
The rates there having been calculated on 13th August so rate available to 26th of September. Or is that only applicable to the two year bond?

Nigel

gt94sss2

noh wrote: »

If the closing date is 26th October why does the Saga web page say "to receive the rates quoted we must receive your application by 26th September 2007" ?

I suspect the website is out of date - when I called them for my parents, I was told the current rates go until the 26th October..

Regards
Sunil

Canny_mal

Does anyone know why the SAGA 1 year fixed rate bond paying 6.92% has suddenly disapeared from the moneyfacts best buy table? According to the SAGA website it's still available but it's definitely not showing on Moneyfacts now and it was earlier in the week.

info_addict

I can confirm that the date is infact the 26th October 2007. Got my application yesterday and in the terms and conditions leaflet enclosed it states, in bold.

11. If your application is received after 26 October 2007 and the interest rate, on the next issue is higher, we will automatically invest your funds in our next issue. If the rates are lower, we will contact you.

When I phoned, I asked about the 26th September date on the website and was told that the account had been in the development stage, for future release, but all of a sudden it was released early and they hadn't updated the website yet. I suggested the early release may have had something to do with Northern Rock. No comment was the reply.

You have to apply by phone, as they will try and interest you other products.

Also, if you don't want any marketing info, you have to opt out by calling 0800 300 555

Nick_C

Canny_mal wrote: »

Does anyone know why the SAGA 1 year fixed rate bond paying 6.92% has suddenly disapeared from the moneyfacts best buy table?

no, but its still topping the list at http://www.fsa.gov.uk/tables

lolly5648

This is now closed. The website says that new rates will launch on 4th October.

Old_Slaphead

Hopefully, as is usual, they will continue honour applications in progess for the next week.