1 YR Savings Bond

NoNameNoPackDrill

Hello All, I've a 1 yr bond with Close Bros due to mature next Spring. I'm a little concerned that this lender seems to be suffering following the car finance "scandal'. My bond was clearly taken out when the bank guarantee limit was £400,000, ie. before the reduced bank guarantee limit of £85,000 came in, I believe a couple of months ago. Does anyone have a view on whether I should be looking to withdraw my bond now, probably with the consequence of losing most or all of the interest accrued. As my bond was taken out several months prior to the reduced limit coming in, I wonder whether the previous limit would be applied, in which case there's no issue.
Thanks all.

eskbanker

NoNameNoPackDrill said:

Hello All, I've a 1 yr bond with Close Bros due to mature next Spring. I'm a little concerned that this lender seems to be suffering following the car finance "scandal'. My bond was clearly taken out when the bank guarantee limit was £400,000, ie. before the reduced bank guarantee limit of £85,000 came in, I believe a couple of months ago. Does anyone have a view on whether I should be looking to withdraw my bond now, probably with the consequence of losing most or all of the interest accrued. As my bond was taken out several months prior to the reduced limit coming in, I wonder whether the previous limit would be applied, in which case there's no issue.
Thanks all.

The only such reduction I'm aware of is that applying to reimbursing authorised push payment scams, but can't see how that would be relevant to your situation in any way?

refluxer

NoNameNoPackDrill said:

Hello All, I've a 1 yr bond with Close Bros due to mature next Spring. I'm a little concerned that this lender seems to be suffering following the car finance "scandal'. My bond was clearly taken out when the bank guarantee limit was £400,000, ie. before the reduced bank guarantee limit of £85,000 came in, I believe a couple of months ago. Does anyone have a view on whether I should be looking to withdraw my bond now, probably with the consequence of losing most or all of the interest accrued. As my bond was taken out several months prior to the reduced limit coming in, I wonder whether the previous limit would be applied, in which case there's no issue.
Thanks all.

The FSCS limit has been £75k/£85k for many years now and has never been as high as £400k. Are you sure that wasn't just the maximum amount Close Brothers allow in that account ?

As is the case with the majority of bonds of this type, your money is locked in for the duration of the fixed rate period so you won't be able to make early withdrawals or close the account before then, unfortunately.

Albermarle

My bond was clearly taken out when the bank guarantee limit was £400,000, ie. before the reduced bank guarantee limit of £85,000 came in, I believe a couple of months ago.

Not sure where you got this info from but it is incorrect.
The FSCS cover of £85K per bank/savings provider has been in place for some years now, and it has never been any higher.
The only exception is for people with a 'temporary high balance' for 6 months. So if you have sold a house but not bought a new one yet for example.

wmb194

What are the terms and conditions of the bond? Except in extraordinary circumstances e.g., terminal illness, outside of an Isa most savings bonds won't allow early withdrawal.

Close Brothers' share price has been battered (LSE:CBG) but I haven't noticed any worries about it failing.