Principality BS launch Members Reward Bond - 7.00%

Kazza242

Principality Building Society are launching two new savings account offerings on 26th October 2007:

The first is called Members Reward Bond issue 7 paying 7.00%, a fixed rate for one year. This bond is only available to those who have been a member of the society for 2 years or more.

The information on this new savings bond is now on their website.

See here.

The minimum - maximum investment limits are:

£1 - £10,000 for single applications
£1 - £20,000 for joint applications

No withdrawals are permitted until the account matures.

The second account is a new regular savings account, called Regular Saver Bond issue 5 paying 7.00%.

This account is available to everyone. You can deposit between £20 - £500 per month. The maximum investment is £6,000.

The information on this account has now been added to the Principality BS website, see here.

Moneyfacts also have info on this account. See here.

baby_boomer

It's not the most attractive regular saver at the moment. I guess it will help keep some money in Wales but are members really being rewarded, or just being told that's how they ought to feel?

I know it's a good account, not least for Kazza's "system" .

Kazza242

baby_boomer wrote: »

It's not the most attractive regular saver at the moment. I guess it will help keep some money in Wales but are members really being rewarded, or just being told that's how they ought to feel?

I know it's a good account, not least for Kazza's "system" .

In terms of interest rate, it's the best 1 year regular saver Principality have offered in recent years. My 6.50% regular saver bond, which I funded from income, matures next month, so this new account is ideal for me.

As I use Barclays to fund it, the first SO payment will arrive the following day and then same day for all subsequent payments. Also I'd like to retain my society membership for obvious reasons.;)

baby_boomer

Ooh, naughty .

And I always thought you were just an honest, above board saver/investor :rotfl: .

Seriously, it's clear that Principality are in the business of offering "reward type" accounts - even if this isn't a top example. A better one was the recent 6.75% 2 Year Fixed Bond which was top on MoneyFacts for a while and is now looking even better value .

A month ago I said that I tend to keep all accounts (mutuals & Plcs) going for two reasons a) it saves hassle on ID if they come up with a new offer and b) both Plcs and mutuals can come up with special offers for existing customers.

Even the much derided ING have come back with a 6.3% offer for "loyal savers" on instant access if you've kept the faith with £1 .

Kazza242

baby_boomer wrote: »

Ooh, naughty .

And I always thought you were just an honest, above board saver/investor :rotfl: .

:rotfl:

Well I always choose an account based on it's interest rate first, but if it happens to be a building society then it's a bonus. Of course one doesn't want to run the risk of closing their account, only to miss out on a windfall in the event of a merger/stock market flotation.:D

The only disadvantage of having so many building society accounts is in May, when all the voting forms arrive through the post.;)

baby_boomer wrote:

Seriously, it's clear that Principality are in the business of offering "reward type" accounts - even if this isn't a top example...

A month ago I said that I keep all accounts (mutuals & Plcs) going for two reasons a) it saves hassle on ID if they come up with a new offer and b) both Plcs and mutuals can come up with special offers for existing customers.

Even the much derided ING have come back with a 6.3% offer for "loyal savers" on instant access if you've kept the faith with £1 .

Very true. Often being a member and the length of time with the building society/bank can be beneficial when they launch their special 'members only' products. The ID issue is also another good reason to remain a customer.

baby_boomer

More of a disadvantage for your Postman . I'm sure you salve your conscience by recycling all the worthy sentiments :rolleyes: they send you, and give Postie a Christmas tip .

Kazza242 wrote: »

Well I always choose an account based on it's interest rate first, but if it happens to be a building society then it's a bonus.

Very wise. I agree. Way to go!

Off topic thought for the day
Half the building society sector has one board of directors and one set of accountants to pay.

The other half of the building society sector has 58 boards of directors and 58 sets of accountants to pay. Something's got to give since ever increasing regulation means that the tasks carried out by the Nationwide board have to be duplicated 58 times in the rest of the sector.

I personally know one ex-Price Waterhouse partner (an excellent & utterly straightforward guy) who has picked up a very cosy position on the board of a totally insignificant society to help fund his retirement cruises. It's great for him. But why should UK savers fund his unnecessary job? It's worse than unnecessary. If the other BSs merged together then they could be a force for good in UK financial services. But these directors will fight tooth & nail against it for their own personal gain .

Speculator

Principality just sent me a leaflet for their Regular Saver Bond issue 5 paying 7.00% (Fixed) and it looks like this one is open to everyone. You don't need to be a 2 year member of the society to open it.

Min £20 per calendar month, Max £500 per calendar month

Max balance £6000

Term: 12 months

Kazza242

Speculator wrote: »

Principality just sent me a leaflet for their Regular Saver Bond issue 5 paying 7.00% (Fixed) and it looks like this one is open to everyone. You don't need to be a 2 year member of the society to open it.

Min £20 per calendar month, Max £500 per calendar month

Max balance £6000

Term: 12 months

That's interesting. They e-mailed me this afternoon with details of the 7.00% Regular Saver bond. They said that you had to have been a member for 2 years to be eligible...Still I don't mind, if it's open to all then that'll be better. The info should be on the website tomorrow.

I wonder if, like Skipton, they are launching two products?

Well done Principality!

RayWolfe

My flyer does not mention Members Reward. It has the T&Cs that kazza mentions but it is open to anyone.
Perhaps there are two, but I would expect the REWARD one to actually REWARD!

RayWolfe

Enlightenment at last!
They have it up on their site now BUT it's a fixed rate bond not a monthly jobbie.
So they have two new offerings:
Fixed Rate Bond and
Fixed Rate Saver
both at 7%

Kazza242

The information on this new savings account bond from Principality BS is now on their website.

See here.

The account is called Members Reward Bond issue 7. The account is only available to members of two years or more.

The minimum - maximum investment limits are:

£1 - £10,000 for single applications
£1 - £20,000 for joint applications