national counties 6 moth bond 6.91%

kanchhelskis

dear all, from next monday national counties will launch a 6 month bond paying 6.91%, with a minimum £1,000 pounds deposit.

Milarky

[STRIKE]Is that a 'thousand' or a 'hundred' or just a 'pound'[/STRIKE]?

Mr_Mumble

Thousand according to moneyfacts. 6.91% is the gross btw, AER is 7.03%.

hansi

If I put 10k into this account, I've worked out that the interest I would earn in 6 months would be £345.50 i.e. 6.91% on the 10K divided by two. Is that right?

bristolleedsfan

hansi wrote: »

If I put 10k into this account, I've worked out that the interest I would earn in 6 months would be £345.50 i.e. 6.91% on the 10K divided by two. Is that right?

yip :T allowing for odd days while deposit is in post and clearing etc, depending on what date the 6 months goes from and ends, at the end of the six months if u reinvest the interest somewhere u will effectively be getting interest upon interest quicker than on an one fixed rate bond hence the higher AER quoted.

interest u quoted is of course gross, non taxpayer rate.

hansi

Yippee. Yes I am a non taxpayer:j :j :j Glad I saw this cos I just opened a Coventry 50+ account but that pays 6.40%. However, I think I'll put the dosh into NC as I don't need it for 6 months. And Coventry have messed me around a bit. I tried to log on and they said I gave the wrong password (which I didn't) and they have now locked me out till they send me a new password (asked for on Thursday and not arrived yet)

hansi

Would I be better off having the interest paid monthly, so that I would get interest on interest?

hansi

I've just noticed in the T and C's that you can't add the monthly interest to the account, you have to have it paid into another account:mad: :mad:

Milarky

hansi wrote: »

I've just noticed in the T and C's that you can't add the monthly interest to the account, you have to have it paid into another account:mad: :mad:

If this is an issue, then pay in £10,335. The interest (roughly same amount) gets paid out during the six months so it's as though you started with your £10,000 and interest was added to the account and its maturing balance will reflect this.