The Top Fixed Interest Savings Discussion Area

jak22

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

pecunianonolet 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)...

 

polymaff

pecunianonolet 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?

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

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

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

Frequentlyhere said:

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

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

Anyone experience of Allica Bank? They currently offer 12 month fixed at 5.51%

Some reviews on trustpilot aren't great though.

intalex

refluxer said:

pecunianonolet 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

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