Union Bank of India

Just_caring

Just going to open a 1 or 2 year bond with UBI and there is a message advising that rates will be revised at 00:01 on the 12/11/22 so anyone with a crystal ball (lol) do you think this is going to be a increase or decrease!! 

wmb194

Given the drift lower in gilt yields, swap rates, other providers reducing their rates and other stresses dissipating my guess would be a decrease.

refluxer

As they're currently top of the 1 and 2 year fixed rate tables, I can't see why they would need to increase their rates so my guess would be a decrease... but who knows ?

Rheumatoid

might open a 2 year to secure it. I see you have 30 days to fund. Anyone know if the rate is secured at opening or when funded?

Edit: found answer in T&C's


Not worth busting a gut to open one today then

soulsaver

I'd give it a miss if I were you. 

In fact I opened 2 FTBs - one got electronic ID approval - the other didn't and they asked for POID which I provided by emailed scans. Not heard anything back. 

I note telephone access is 9.30 - 14.30 week days - nowt at w.e.

And worst of all they're paying simple interest, 5% not compounded. Which is OK for a 1 year, but is the equivalent c4.85% compounded over 2 years ... which is available at a load better known & organised banks. ie Charter, RCI, Investec. 

Rheumatoid

soulsaver said:

I'd give it a miss if I were you. 

In fact I opened 2 FTBs - one got electronic ID approval - the other didn't and they asked for POID which I provided by emailed scans. Not heard anything back. 

I note telephone access is 9.30 - 14.30 week days - nowt at w.e.

And worst of all they're paying simple interest, 5% not compounded. Which is OK for a 1 year, but is the equivalent of a smidgeon less than c4.8% compounded over 2 years ... which is available at a load better known & organised banks. ie Charter, RCI, Investec. 

Not sure I understand comment about interest. If they are advertising 5% AER on a 2 year bond surely that is what you get?

soulsaver

Rheumatoid said:

soulsaver said:

I'd give it a miss if I were you. 

In fact I opened 2 FTBs - one got electronic ID approval - the other didn't and they asked for POID which I provided by emailed scans. Not heard anything back. 

I note telephone access is 9.30 - 14.30 week days - nowt at w.e.

And worst of all they're paying simple interest, 5% not compounded. Which is OK for a 1 year, but is the equivalent of a smidgeon less than c4.8% compounded over 2 years ... which is available at a load better known & organised banks. ie Charter, RCI, Investec. 

Not sure I understand comment about interest. If they are advertising 5% AER on a 2 year bond surely that is what you get?

Are they advertising 5% AER?

lohr500

I hope they don't drop the rate on the 1 year fix as I opened an account with them today. But because of Santander fraud checks the payment has been delayed Santander told me it would probably go through by Monday. 
UBI T&Cs say interest will be based on the rate in place once funds are cleared. I won't be happy if the 4.6% rate is lowered. There doesn't appear to be any cooling off period either with a fixed rate saving.

refluxer

The 1 and 2 year fixes are down to 4.35% and 4.75% respectively

soulsaver

lohr500 said:

I hope they don't drop the rate on the 1 year fix as I opened an account with them today. But because of Santander fraud checks the payment has been delayed Santander told me it would probably go through by Monday. 
UBI T&Cs say interest will be based on the rate in place once funds are cleared. I won't be happy if the 4.6% rate is lowered. There doesn't appear to be any cooling off period either with a fixed rate saving.

The Premier Bond terms don't say anything about rate at time funds are cleared, that's in their acknowledgement of application.

They may argue it varies the accounts terms as at that point you haven't funded it.

I'd become a 'thorn' if that was the case. Keep us posted please. 

eta PS If I could, I'd stop the transfer from Santander to UBI, and go with maybe RCI at 4.85%, as compounded, it's as good as UBI 5% simple interest. 

bristolleedsfan

lohr500 said:

I hope they don't drop the rate on the 1 year fix as I opened an account with them today. But because of Santander fraud checks the payment has been delayed Santander told me it would probably go through by Monday. 
UBI T&Cs say interest will be based on the rate in place once funds are cleared. I won't be happy if the 4.6% rate is lowered. There doesn't appear to be any cooling off period either with a fixed rate saving.

After they withdrew 1 year fix in August they emailed giving more time to send funds @ advertised rate and despite them saying funds received after 1pm do not get received until following day, the following day after sending funds after 2pm I had email stating funds had been received the day before ....