The Top Fixed Interest Savings Discussion Area

clairec666

silvermum said:

I haven't seen much/any discussion of the NatWest Fixed Rate Saver https://www.natwest.com/savings/fixed-term-savings-account.html paying 4.2% AER ?

Not the highest rate, but I was attracted as I already have a NatWest current account and wanted to take monthly interest from a lump sum for the next 6-12 months.

Opened it OK, but ran into problems trying to set up the monthly interest payments to my current account. Seems I'd missed this little gem in the small print:

You can choose to have interest paid into a Nominated Account. This must be a NatWest personal current or savings account with instant access (other than a cash ISA) held in your name at the same branch as your Fixed Term Savings Account.  (bold added by me)

I've banked with NatWest since I was a student and have no idea where my branch now is, but with a different sort code for the Fixed Rate Saver I couldn't pay away the monthly interest.

Seems very silly.

So now I'll close the NW saver and have opened an account with Vanquis who were very happy to take my money and pay interest into my NatWest current account!

Extremely silly, as they have closed quite a few branches in the last decade or so. Presumably the sort codes for those branches are no longer used?

nigelholl2

From memory, and that can be foggy at times

Quite a while ago, my account that I have had with them from being 18 and first job, got transferred to Prime Line, as tele banking was setup at that time.

I have on occasion had to provide my branch address, and thing Googling the sort code did the tricks

How things have moved on, some good, some not so good, some best not mentioned on here

Ocelot

SickGroove said:

My Ford fix matures mid November & contemplating if I should re fix for 2 years at their 4.25% rate now as per maturity options (incase it gets pulled or the base rate drops next Thursday) or just put it in the Zopa 4.75% easy access account, but again over two years that rate could drop considerably...

Any advice appreciated 

Cheers

If you need the money, put in IA, otherwise fixed rate.

refluxer

silvermum said:

I haven't seen much/any discussion of the NatWest Fixed Rate Saver https://www.natwest.com/savings/fixed-term-savings-account.html paying 4.2% AER ?

I've made use of fixed rate accounts on a regular basis over the years but, personally, I haven't opened one for a while, with EA accounts like Zopa paying 4.75% (NLA) and the base rate having held steady for a few months. I've got a few fixed rate accounts maturing in the near future though, so will need to consider carefully what to do with those, in order to spread the risk of future base rate drops.

silvermum said:

You can choose to have interest paid into a Nominated Account. This must be a NatWest personal current or savings account with instant access (other than a cash ISA) held in your name at the same branch as your Fixed Term Savings Account.  (bold added by me)

I've banked with NatWest since I was a student and have no idea where my branch now is, but with a different sort code for the Fixed Rate Saver I couldn't pay away the monthly interest.

That seems like a ridiculous, old-fashioned restriction. I honestly thought the concept of a 'local branch' (which is where we would have once opened our current accounts a long time ago) dated back to the days when banks kept records on paper and was therefore long-gone. With the high-street bank I have my current account with, the local branch was moved to another branch in a nearby town (for admin purposes) around 10-15 years ago but since then, both that branch and my (actual) local branch have closed down so my local branch doesn't exist any more and I don't remember being informed it had shifted yet again, either. 

There are times when high-street banks act like dinosaurs when compared with more modern, app or web only-based savings account providers, where you could have an account like you one you require up and running in minutes, with no restrictions like the one you discovered !  

BooJewels

I have a 3 year fix maturing in a few days, so have been watching for suitable replacements recently.  As I'm in danger of getting myself confused, I didn't really want to go beyond places that I already hold accounts.  I saw the First Save 2 Year Fixed Rate Bond was AER 4.45% and monthly paid gross of 4.36% (my personal preference).  It was too soon to apply (must be funded within 10 business days), but the first day I could apply, I went to do so and it was no longer available, said it was fully subscribed.

I just looked again, out of curiosity, before I committed elsewhere and it was available again - so I've managed to apply.  Hope the rate lasts until I can fund it next week.

refluxer

BooJewels said:

I just looked again, out of curiosity, before I committed elsewhere and it was available again - so I've managed to apply.  Hope the rate lasts until I can fund it next week.

With this type of account, you should get the rate you applied for, provided you can fund it in time.

BooJewels

refluxer said:

BooJewels said:

I just looked again, out of curiosity, before I committed elsewhere and it was available again - so I've managed to apply.  Hope the rate lasts until I can fund it next week.

With this type of account, you should get the rate you applied for, provided you can fund it in time.

I think I always have had, other than one where it increased and I got a better rate subsequently - I think that was Ford.  There was some wording on the confirmation page about you will be advised of the interest rate of the bond when you make a deposit, suggesting that it might be different.  It referenced a particular point in their T&C which actually doesn't say much about it, other than it's fixed for the life of the bond, but other terms say the bond starts when funded.  

refluxer

BooJewels said:

I think I always have had, other than one where it increased and I got a better rate subsequently - I think that was Ford.  There was some wording on the confirmation page about you will be advised of the interest rate of the bond when you make a deposit, suggesting that it might be different.  It referenced a particular point in their T&C which actually doesn't say much about it, other than it's fixed for the life of the bond, but other terms say the bond starts when funded.  

Some banks start the fixed term of a bond on the day the account is created and some start it from the date of your first deposit so both of those scenarios are common, but if they specifically state in the account T&Cs that the interest rate only gets fixed at the time of your first deposit then that would definitely go against convention, as I don't think I've come across another bank or building society who operates their fixed rate bonds in that way.

If that in the case, then it would definitely make sense to either fund it straight away or check the applicable rate just before you do make the first deposit. 

That approach would put me off opening a bond with them, personally. What if they take some time to credit the first payment and the rates drops in the meantime ? This would lead to you getting a lower rate than expected and there may not be a cooling off period in which you could change your mind.

BooJewels

refluxer said:

BooJewels said:

I think I always have had, other than one where it increased and I got a better rate subsequently - I think that was Ford.  There was some wording on the confirmation page about you will be advised of the interest rate of the bond when you make a deposit, suggesting that it might be different.  It referenced a particular point in their T&C which actually doesn't say much about it, other than it's fixed for the life of the bond, but other terms say the bond starts when funded.  

Some banks start the fixed term of a bond on the day the account is created and some start it from the date of your first deposit so both of those scenarios are common, but if they specifically state in the account T&Cs that the interest rate only gets fixed at the time of your first deposit then that would definitely go against convention, as I don't think I've come across another bank or building society who operates their fixed rate bonds in that way.

If that in the case, then it would definitely make sense to either fund it straight away or check the applicable rate just before you do make the first deposit. 

That approach would put me off opening a bond with them, personally. What if they take some time to credit the first payment and the rates drops in the meantime ? This would lead to you getting a lower rate than expected and there may not be a cooling off period in which you could change your mind.

BIB:  that isn't what I said at all, as you can see - my modest concern was because the wording was all a bit woolley - nothing specific at all - but enough so to make me check.  The page I saw only fleetingly (I tried to go back, but it said I'd been timed out of my application) said that I'd be advised of the interest rate when I'd made a deposit.  In other places it states that the bond commences when you make a deposit and if you don't make one in time, the account will be closed.

As I also said - I’ve not experienced a rate reduction once opening a fix (including a couple with FirstSave) by the time it's funded - but have had one increase between opening and the funding period closing - I'm pretty sure that was with Ford, as they do say they'll do that.

Ultimately, I'll find out next week when I'm in a position to fund it.

SickGroove

Reinvest maturing Ford fix into another 2 year fix with them @ 4.25% or stick it all onto my Zopa 4.75% then fix elsewhere when that rate considerably drops?

I'm not in the rush for the money & have been getting the interest paid away from my current Ford fix. 

I'm maxed out on this year's cash ISA allowance btw

Cheers