Principality BS launch Members Reward Bond - 7.00%

baby_boomer

Hi Kazza,

I think you meant £10,000 maximum. If it was minimum there'd be a riot in Cardiff and accusations of favoritism towards English carpetbaggers such as your good self.

Kazza242

baby_boomer wrote: »

Hi Kazza,

I think you meant £10,000 maximum. If it was minimum there'd be a riot in Cardiff and accusations of favoritism towards English carpetbaggers such as your good self.

I meant minimum - maximum and had attempted to edit the post earlier to reflect this. When I came back the 'page cannot be displayed' message was on screen. I didn't realise the edit hadn't gone through.

I'm not a carpetbagger . I just wouldn't say 'no' if I was offered a windfall of some sort!;)

Special_Saver2

Sorry to come to this discussion late but could you clarify something for me? Are they still going to launch a regular savings bond? I cannot find any details of the regular savings bond yet.

Kazza242

Special_Saver2 wrote: »

Sorry to come to this discussion late but could you clarify something for me? Are they still going to launch a regular savings bond? I cannot find any details of the regular savings bond yet.

Yes, the Fixed Rate Regular Saver Bond Issue 5 was launched today (29/10/2007) - according to the Principality BS advisor I spoke to last week. Though the information is still not on their website or Moneyfacts (as I write this post).

As my issue 4 is maturing, they sent me a letter about the new account:
"Save £20 - £500 each calendar month, and earn 7.00% Gross* p.a./AER**, fixed for one year. No withdrawals are allowed. Interest is calculated daily and paid on maturity".

The account is definitely available now. Principality are accepting applications by post.

Old_Slaphead

Kazza242 wrote: »

The account is definitely available now. Principality are accepting applications by post.

Would be cool if them PBS dudes uploaded an application form thought to save having to phone through a request and wait a week for postieman.

bristolleedsfan

Kazza242 wrote: »

Yes, the Fixed Rate Regular Saver Bond Issue 5 was launched today (29/10/2007) - according to the Principality BS advisor I spoke to last week. Though the information is still not on their website or Moneyfacts (as I write this post).

As my issue 4 is maturing, they sent me a letter about the new account:
"Save £20 - £500 each calendar month, and earn 7.00% Gross* p.a./AER**, fixed for one year. No withdrawals are allowed. Interest is calculated daily and paid on maturity".

The account is definitely available now. Principality are accepting applications by post.

everyone seems to be :j about this, is same rate as stroud and swindon and halifax were offering before 4 base rate rises.

for those not funding out of income arent they just as well off sticking a lump sum in birmingham midshires 6.86% 1 year fix rather than feeding in monthly to get 7% pro rata monthly.

Old_Slaphead

Not sure who's jumping up and down on this one.

A £20-£500 FR saver gives some useful strategic insurance against possible future interest rate reductions for a modest outlay of £20pm....esp. if you don't have cash available to take advantage of BM offer.

If rates go up - you keep exposure to this account minimal and vice versa.

bristolleedsfan

Old_Slaphead wrote: »

Not sure who's jumping up and down on this one.

A £20-£500 FR saver gives some useful strategic insurance against possible future interest rate reductions for a modest outlay of £20pm....esp. if you don't have cash available to take advantage of BM offer.

If rates go up - you keep exposure to this account minimal and vice versa.

" for those not funding out of income "

Kazza242

bristolleedsfan wrote: »

everyone seems to be :j about this, is same rate as stroud and swindon and halifax were offering before 4 base rate rises.

for those not funding out of income arent they just as well off sticking a lump sum in birmingham midshires 6.86% 1 year fix rather than feeding in monthly to get 7% pro rata monthly.

It is no coincidence that Principality have launched their 7.00% regular saver exactly a year after the launch of their 6.50% regular saver. It has been timed, so that savers, such as myself, who have an issue 4 about to mature continue to save with Principality.

To be honest after my issue 4 matured I wasn't planning on opening another 6.50% one - not with the current rates that many fixed rate bonds are paying. However, now Principality have increased the rate, it is worth it for me because of these reasons:

1. I fund it from income that is paid into my Barclays current account.
2. Principality use Barclays as their clearing bank so payments arrive much quicker. The 1st SO payment will hit the Principality RS account the day after it is sent. All subsequent payments will arrive same day.

Therefore, for me, it makes sense. Though I do take your point about a fixed rate bond sometimes being a better option for those with a lump sum of existing savings.

bristolleedsfan

Kazza242 wrote: »

Therefore, for me, it makes sense. Though I do take your point about a fixed rate bond sometimes being a better option for those with a lump sum of existing savings.

leaving aside your personal circumstances which u documented, assuming that someone already is funding westbromwich 8.10 variable reg saver with max 1000.00 per month id have thought skiptons xmas 2008 saver and unlimited no of skiptons special saver would be better for most people than principalitys 7% reg saver 1 year fix being as base rates would need to fall by more than twice x 0.25% before principality 7% fix is better than skiptons variable special saver account (s)