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The Top Fixed Interest Savings Discussion Area

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  • jak22
    jak22 Posts: 400 Forumite
    100 Posts Second Anniversary
    The process for maturity instructions with Kent Reliance doesnt seem great - and this experience is reflected in comments on Trust Pilot although I dont see much here about it.

    There's no maturity mechanism online, they say they'll write - and apparently they do mean by post - at two weeks before but this seems optimistic, and the instruction may be expected by post too - otherwise it would be to try a call or message.
  • refluxer
    refluxer Posts: 3,184 Forumite
    1,000 Posts Fourth Anniversary Photogenic Name Dropper
    edited 17 June 2023 at 2:09PM
    refluxer said:
    I note we're getting tantalisingly close to an average return of 6% PA for a 5-year fixed rate, if interest is allowed to compound.

    Unfortunately, Tandem (at 5.35%) only allows interest to be paid away, otherwise this would have given around 5.95%.

    I reckon we need a 5-year fix at around 5.39% (which allows compounding) to achieve 6% PA (although this might vary slightly depending on whether interest is added monthly or annually)... that's using my simple Excel-based calculations, at least !
    How would that be calculated please?
    There are compound interest calculators online but I just set up a small, simple, 'rough-and-ready' spreadsheet table which works out the interest in year 1, then adds that into the balance for year 2 and so on.

    This is for interest added annually (monthly interest results would differ slightly, presumably)...

     


  • polymaff
    polymaff Posts: 3,950 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 17 June 2023 at 3:08PM
    refluxer said:
    I note we're getting tantalisingly close to an average return of 6% PA for a 5-year fixed rate, if interest is allowed to compound.

    Unfortunately, Tandem (at 5.35%) only allows interest to be paid away, otherwise this would have given around 5.95%.

    I reckon we need a 5-year fix at around 5.39% (which allows compounding) to achieve 6% PA (although this might vary slightly depending on whether interest is added monthly or annually)... that's using my simple Excel-based calculations, at least !
    How would that be calculated please?
    Using refluxer's hoped for:
    1.0539 ^ 5 is 1.300
    Calculations like this require, and deliver the Interest Factor - which is 1 plus the interest rate divided by 100.
    So 1.0539 is the interest factor for 5.39%.
    And the result of the calculation, 1.300, is the interest factor for 6.0% p.a.  (30.0% / 5 years)
  • southone
    southone Posts: 197 Forumite
    Third Anniversary 100 Posts Name Dropper
    edited 17 June 2023 at 3:27PM
    jak22 said:
    The process for maturity instructions with Kent Reliance doesnt seem great - and this experience is reflected in comments on Trust Pilot although I dont see much here about it.

    There's no maturity mechanism online, they say they'll write - and apparently they do mean by post - at two weeks before but this seems optimistic, and the instruction may be expected by post too - otherwise it would be to try a call or message.

    They write to you at maturity and give you options if you do nothing they choose the option as indicated in the letter which is usually a similar account to what you have already had if you don't want to take that option you can either send the letter back or you can phone them and tell him what you do want done with funds I've had a number of accounts and never had a problem
  • Frequentlyhere
    Frequentlyhere Posts: 338 Forumite
    Sixth Anniversary 100 Posts Photogenic Name Dropper
    edited 17 June 2023 at 4:08PM
    southone said:
    jak22 said:
    The process for maturity instructions with Kent Reliance doesnt seem great - and this experience is reflected in comments on Trust Pilot although I dont see much here about it.

    There's no maturity mechanism online, they say they'll write - and apparently they do mean by post - at two weeks before but this seems optimistic, and the instruction may be expected by post too - otherwise it would be to try a call or message.

    They write to you at maturity and give you options if you do nothing they choose the option as indicated in the letter which is usually a similar account to what you have already had if you don't want to take that option you can either send the letter back or you can phone them and tell him what you do want done with funds I've had a number of accounts and never had a problem
    It's a bit '15-20 years ago though', isn't it? 

    Re: "I dont see much here about it"  there's a whole massive thread about KR on here with lots of people complaining (self included) somewhere. 

    The nub of the issue for me is that their systems aren't anywhere near as online as they need to be, and if you need to do anything at all not 100% straightforward, then you're at the whim of an (IMO) understaffed operation. My personal 'mistake' was needing to change my nominated account (because Tesco bank closed down). It took nearly a month in the end - I did at least get £30 compensation.


  • bristolleedsfan
    bristolleedsfan Posts: 12,644 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    southone said:
    jak22 said:
    The process for maturity instructions with Kent Reliance doesnt seem great - and this experience is reflected in comments on Trust Pilot although I dont see much here about it.

    There's no maturity mechanism online, they say they'll write - and apparently they do mean by post - at two weeks before but this seems optimistic, and the instruction may be expected by post too - otherwise it would be to try a call or message.

    They write to you at maturity and give you options if you do nothing they choose the option as indicated in the letter which is usually a similar account to what you have already had if you don't want to take that option you can either send the letter back or you can phone them and tell him what you do want done with funds I've had a number of accounts and never had a problem
    It's a bit '15-20 years ago though', isn't it? 

    Re: "I dont see much here about it"  there's a whole massive thread about KR on here with lots of people complaining (self included) somewhere. 

    The nub of the issue for me is that their systems aren't anywhere near as online as they need to be, and if you need to do anything at all not 100% straightforward, then you're at the whim of an (IMO) understaffed operation. My personal 'mistake' was needing to change my nominated account (because Tesco bank closed down). It took nearly a month in the end - I did at least get £30 compensation.


    Not unique Al Rayan Bank and United Bank UK ( UBL)  two recent experiences send maturity reminder letter by post, savers can contact savings providers themselves giving maturity instructions.
  • Rudyson
    Rudyson Posts: 347 Forumite
    Part of the Furniture 100 Posts Name Dropper
    southone said:
    jak22 said:
    The process for maturity instructions with Kent Reliance doesnt seem great - and this experience is reflected in comments on Trust Pilot although I dont see much here about it.

    There's no maturity mechanism online, they say they'll write - and apparently they do mean by post - at two weeks before but this seems optimistic, and the instruction may be expected by post too - otherwise it would be to try a call or message.

    They write to you at maturity and give you options if you do nothing they choose the option as indicated in the letter which is usually a similar account to what you have already had if you don't want to take that option you can either send the letter back or you can phone them and tell him what you do want done with funds I've had a number of accounts and never had a problem
    That's exactly what's happened with my KR accounts. They write well in advance of maturity, and a quick phone call to them sorts it all out. I wouldn't hesitate to take more accounts out with them.

  • Aidanmc
    Aidanmc Posts: 1,305 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    Anyone experience of Allica Bank? They currently offer 12 month fixed at 5.51%
    Some reviews on trustpilot aren't great though.

  • intalex
    intalex Posts: 985 Forumite
    Part of the Furniture 500 Posts Name Dropper Photogenic
    refluxer said:
    refluxer said:
    I note we're getting tantalisingly close to an average return of 6% PA for a 5-year fixed rate, if interest is allowed to compound.

    Unfortunately, Tandem (at 5.35%) only allows interest to be paid away, otherwise this would have given around 5.95%.

    I reckon we need a 5-year fix at around 5.39% (which allows compounding) to achieve 6% PA (although this might vary slightly depending on whether interest is added monthly or annually)... that's using my simple Excel-based calculations, at least !
    How would that be calculated please?
    There are compound interest calculators online but I just set up a small, simple, 'rough-and-ready' spreadsheet table which works out the interest in year 1, then adds that into the balance for year 2 and so on.

    This is for interest added annually (monthly interest results would differ slightly, presumably)...

     


    In Layman's, 5.39% AER on a 5-year fix is equivalent to 6.00% Gross on a 5-year fix with interest credited only once at maturity.

    Gross rates can be very misleading for comparative purposes, as they need to be considered with interest payment frequency before achieving apples vs apples comparisons.

    AER is still the benchmark for me and so sadly, I don't see the market as being close to 6% quite yet.
  • VNX
    VNX Posts: 458 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Aidanmc said:
    Anyone experience of Allica Bank? They currently offer 12 month fixed at 5.51%
    Some reviews on trustpilot aren't great though.

    No experience I’m afraid but I wouldn’t be out off by online reviews of any bank personally 
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