5 year fixed ISA v 5year fixed bond

SallySunshine

Upwind,
got my maturity letter this a.m from Coventry, I was all fixed yesterday to reinvest at 1.25% but also transfer some to my local B.S. at 1.30%. Couldn't believe it, highest offer is 0.85% for 3yrs, swiftly checked with my local B.S. and that too has been  dropped from 1.30% to 0.90% for 5 years. Too early to look at transferring to another bank, can't do that until next week when no doubt they will reduce also. Head is about to explode!!!
Rather shellshocked to say the least!

Upwind

I got through to a gent called Mobeen today and although the line was awful, I managed to fire a few questions at him.
I have downloaded the application for a Fixed Rate ISA form and also 2 applications to transfer in.  Mobeen wasn't too sure how long the rate would last and said that they would normally expect funding withing 10 -14 days - although most financial groups seem to give you 30 days. 
Has anyone else had any dealings with UBLUK - any issues/problems?  

SallySunshine

Hi Upwind, glad you managed to get in contact with UBLUK, yes, the other bank, with whom i also have an account which makes it easier to do quick applications, also say funding has to be within 14 days of opening, so next week is my window between Maturity at the Coventry  and applying for transfer to them.
Strangely the Coventry have written to say they will confirm what i have opted to do after my maturity date, but stated I can 
change my mind without charge 3 weeks after?

Upwind

I haven't had the packup from Coventry yet - I'd imagine that the 3 week 'change of mind' policy is something insisted upon by the Financial Ombudsman - a cooling off period.  Are Coventry offering 1.25% you said? 

SallySunshine

They were the other day, swift drop! Now 12 month 0.60%, 24 month 0.70% and 36 month 0.85% .
Are you aware that UBLUK interest is not compounded on any of their products, so any ISA interest into your bank account is out of that wrapper and taxed accordingly.

Rates correct as at 25.08.2020

You can choose to have your interest paid monthly (for 2, 3, and 5 year terms), quarterly (for 3, and 5 year terms), annually (for 2, 3, and 5 year terms), or for all deposits (1, 2, 3 and 5 year terms) on the maturity of the deposit. Please refer to Interest Rate Sheet for Gross Rates on different interest payment options.

Interest is calculated daily and credited monthly, quarterly, annually, or at maturity of the deposit depending on your selection. This selection cannot be amended once the selection is confirmed.

Interest will be paid out to an account nominated by you at the time of account opening. This account must be in your name.

Interest is not added to your principal amount at the selected frequency unless you have selected interest payment at maturity.

UBL UK does not compound interest.

Upwind

Yes I knew that - I'll be honest I just want to keep the ISA package together - tax reasons.