Principality BS launch Members Reward Bond - 7.00%

Kazza242

bristolleedsfan wrote: »

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)

Maybe, though before the accounts mature the Principality rate fixed at 7.00% could be higher than Skipton's rate if BOE base rate does go down. The BOE have tended to raise rates slowly by 0.25% at a time, but when cutting it they do sometimes do so by 0.50% each time. Also, as the Skipton rate is variable they can cut the rate by however much they want even without a base rate reduction.

If a saver is already a member of Skipton and Principality they may wish to continue that membership. The best way to do so is to choose the accounts paying the highest rates available. A RS account can be ideal as the monthly payments ensure that the account is kept 'active'.

Personally, I'm pleased that Principality have launched this new regular saver and pitched the rate at 7.00%. This can only create competition amongst banks and building societies.

EDIT: I should add (as you probably didn't see my post in the Skipton thread), that I opened the Special Saver yesterday and I'm opening the Xmas Saver 2 on Nov 1st. I haven't yet opened the Principality issue 5, but still intend to.

Kazza242

Old_Slaphead wrote: »

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

Yes, agreed on that point. No one was jumping up and down. I was a bit surprised by Principality launching this new account as I had made up my mind not to open another 6.50% RS account.

Old_Slaphead wrote: »

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.

Very true. You've made a good point. I think that BOE base rate will start going down early next year. A fixed rate is always attractive when base rate has more or less hit a peak. Well done to Principality for launching these two accounts, which are bound to stir up competition.

Kazza242

Information on the Principality 7.00% Regular Saver issue 5 has now been added to the Moneyfacts website. See here.

Old_Slaphead

bristolleedsfan wrote: »

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)

I may be wrong but my reading of the Skippy offer is that deposits must be made at the branch. Good account if you work or live close to one.

Speculator

Old_Slaphead wrote: »

I may be wrong but my reading of the Skippy offer is that deposits must be made at the branch. Good account if you work or live close to one.

from the Skipton Website...

For your convenience you can make transactions by cash, cheque, standing order (credits only) or transfer

Speculator

Personally, I am ditching the Principality, leaving just £100 in their e-saver for obvious reasons.

I am going to continue saving in the new Britannia fixed rate Reg paying 7.5% and open as many Skipton Specials as I can afford.

I might even lower my Yorkshire Regular payment to £10, not happy with them after they paid me the incorrect bonus for my Regular Saver and withholding my E-ISA interest payment after transferring to their anniversary Fixed rate ISA.

bristolleedsfan

Speculator wrote: »

Personally, I am ditching the Principality, leaving just £100 in their e-saver for obvious reasons.

I am going to continue saving in the new Britannia fixed rate Reg paying 7.5% and open as many Skipton Specials as I can afford.

I might even lower my Yorkshire Regular payment to £10, not happy with them after they paid me the incorrect bonus for my Regular Saver and withholding my E-ISA interest payment after transferring to their anniversary Fixed rate ISA.

i dont blame u, personally i believe feeding into a 7% fixed rate regular saver that finishes after 12 months is rubbish. ( principality held the 6.5% fixed reg saver rate for a long long time and imo should be at least 7.5% fixed now) obviously kazza finds it convenient for her circumstances which is nice for her.

im also going to fund yorkshire reg saver to near minimum levels as with instant access accounts paying 6.35/6.40% for relatively small sums very little difference in the actual interest, holding money in such an instant access account means if a excellent limited offer account is launched can go for it.

i also believe 6.35%-6.40% instant access is ideal for building up funds for isa year 2008/09. :cool:

Old_Slaphead

Speculator wrote: »

I might even lower my Yorkshire Regular payment to £10....and withholding my E-ISA interest payment after transferring to their anniversary Fixed rate ISA.

See my posts on YBS Anniversary ISA in ISA forum

bristolleedsfan

Old_Slaphead wrote: »

See my posts on YBS Anniversary ISA in ISA forum

a link would have been good, always facinating to read what you have to say. :j

http://forums.moneysavingexpert.com/showthread.html?t=580039

Kazza242

Speculator wrote: »

Personally, I am ditching the Principality, leaving just £100 in their e-saver for obvious reasons.

I am going to continue saving in the new Britannia fixed rate Reg paying 7.5% and open as many Skipton Specials as I can afford.

I might even lower my Yorkshire Regular payment to £10, not happy with them after they paid me the incorrect bonus for my Regular Saver and withholding my E-ISA interest payment after transferring to their anniversary Fixed rate ISA.

Now all of these other regular savings accounts have launched in just the last couple of days (Skipton Special Saver, Britannia etc.), savers have to choose the best savings accounts that suit them. The launch of the Principality account has indeed increased competition since Britannia and Skipton have followed suit in launching new accounts, which can only be a good thing.

I have already opened a Skipton Special Saver and I'm opening the new Xmas Saver tomorrow. Followed by the new Britannia saver, then possibly another Special Saver and then the Principality account - since they still haven't opened my eSaver. Skipton also use Barclays as their clearing bank so this works well for me too.