Fixed Rate Bonds

Albermarle

I seem to remember from another recent thread, that Skipton offer trust savings accounts, that many other providers do not, so this might be the reason.

What is Skipton's track record for increasing the rates on their fixed rate savings accounts ?

It is not a direct answer, but I know a few years ago their savings account were quite competitive, and I had some fixed rate bonds with them . However as the terms finished , I have not renewed any of them, including recently, as they have not very attractive rates anymore.

Mumum

refluxer said:

Mumum said:

I'm talking about fixed rate bonds. So what would be the best move in this scenario?

It's a tough call but there is another BoE meeting on 16th June, so you might as well hold off until then. What is Skipton's track record for increasing the rates on their fixed rate savings accounts ? Has the rate of a 1 year fix increased since you started looking into this, for example ?

Is there really no way to remove the ridiculous restriction of having to stay with the Skipton ? Trusts should be run for the benefit of the child and restricting funds to a building society who are paying less than half the rates of other banks or building societies will mean that the child will lose out on hundreds - or even thousands - of pounds, depending on the amount we're talking about and the age of the child.

Thanks refluxer, it's driving me crazy. The money is personal injury compensation to myself for a cancer misdiagnosis (not much considering but that's another story). Inorder to maintain my eligibility for benefits (sorry - health not great), the money was put into a trust fund (this is all legal and the way things are done in these scenarios and the solicitor informed the DWP). The money is intended for my son (now 16) to help keep him safe as if I die then he's on his own, but as it was my injury it couldn't go in his name.
The trustees are a couple of people (they don't know each other) who I know that are trustworthy but neither, one in particular, will send their ID in the post plus I have to be careful not to bombard them with forms (eg the staggered suggestion on page 1) or possibly lose their support. I'm in a precarious position  as they are doing me a favour and without their support I lose my eligibility for benefits.
I'm also a trustee (as well as settlor) and I'm thinking I could add my son at 18 and possibly find someone more flexible to help us as I'm so frustrated at losing so much money, Skiptons rates are lower than others out there but their branch is local so they were able to take their ID down. Only Barclays and Skiptons accepted trust accounts local to us. It's very upsetting.

Mumum

refluxer said:

Mumum said:

I'm talking about fixed rate bonds. So what would be the best move in this scenario?

It's a tough call but there is another BoE meeting on 16th June, so you might as well hold off until then. What is Skipton's track record for increasing the rates on their fixed rate savings accounts ? Has the rate of a 1 year fix increased since you started looking into this, for example ?

Is there really no way to remove the ridiculous restriction of having to stay with the Skipton ? Trusts should be run for the benefit of the child and restricting funds to a building society who are paying less than half the rates of other banks or building societies will mean that the child will lose out on hundreds - or even thousands - of pounds, depending on the amount we're talking about and the age of the child.

They have increased from 0.6% to 1.1 for the 1 yr as the base rate changed up to 1%.

Mumum

Sea_Shell said:

Have the trustees provided you with regular copies of statements for the account(s) the money is currently held in?

I'm a trustee also (there are three of us), they are pretty much just there to help me to satisfy the benefit rules. All legal and the trust drawn up by a solicitor but I know the money is in there and what it is earning (pittance) as I receive the annual statement when the fixed rate bond matures 

Mumum

Bigwheels1111 said:

Just a simple question, why cant you access other accounts.

No smart phone or Ipad ?.

No ID, Passport or Driving Licence.

Only certain products can be held by a trust and online accounts don't accept them, they have to be done on paper forms, one per each trustee. If wanting to change building societies to a better rate then ID must be sent in the post or in person to set up the new trust account.

Mumum

Olinda99 said:

the Trustees are not acting in the best interests of the child if they restrict to one institution only, and are thus failing in their duty as trustees.

Technically but their only real duty in this scenario is to allow me to keep the trust money as it will all be gobbled up if I lose my eligibility to benefits and I would therefore not have had compensation for my injury. The law allows benefit recipients to keep their personal injury money as long as it is in a trust. The alternative is for a solicitor to look after the trust but they take out money left, right and centre. 

Mumum

Albermarle said:

I seem to remember from another recent thread, that Skipton offer trust savings accounts, that many other providers do not, so this might be the reason.

What is Skipton's track record for increasing the rates on their fixed rate savings accounts ?

It is not a direct answer, but I know a few years ago their savings account were quite competitive, and I had some fixed rate bonds with them . However as the terms finished , I have not renewed any of them, including recently, as they have not very attractive rates anymore.

Yes this is true, not many banks or building societies hold trust accounts anymore although there are some, which offer better than Skiptons, which do but are not local.
Agreed, Skiptons rates aren't at all competitive.

Mumum

Sea_Shell said:

Olinda99 said:

the Trustees are not acting in the best interests of the child if they restrict to one institution only, and are thus failing in their duty as trustees.

From OPs other thread, I understand that it is actually their money held in trust for them, which they eventually want to pass on to their son.

Trustees are friends... although not sure how much transparency their is between them an OP?   Hopefully lots!!

Lots of transparency as I am a trustee too and yes that is an accurate summary of my situation, thank you. 

Sea_Shell

Mumum said:

Sea_Shell said:

Olinda99 said:

the Trustees are not acting in the best interests of the child if they restrict to one institution only, and are thus failing in their duty as trustees.

From OPs other thread, I understand that it is actually their money held in trust for them, which they eventually want to pass on to their son.

Trustees are friends... although not sure how much transparency their is between them an OP?   Hopefully lots!!

Lots of transparency as I am a trustee too and yes that is an accurate summary of my situation, thank you. 

So glad to hear that, as there have been instances (on here) of Trustees that have been suspected to have been less than trustworthy!!  

Mumum

I hadn't realised that I had not stated the amount. Its only £36,500 as it was settled out of court on a financial basis (so the defence claim) and no-win-no-fee taken out. Liability was denied and, as there was a risk of coming out with nothing, I decided to go along this action. At least this way there would still be money for my son to fall back on or pay a deposit on a mortgage etc