Northern Rock,new account.

buildrum

Thanks to everyone on the info in this post.

This is my first post so please be forgive me if i don't do it correctly!

Can anyone give me a good reason why i should not put £250k into this new NR bond?

And why hasn't martin mentioned this in his best tables or email updates?or did he and i can't see it?

Thanks

Buildrum

Steve_xx

buildrum wrote: »

Thanks to everyone on the info in this post.

This is my first post so please be forgive me if i don't do it correctly!

Can anyone give me a good reason why i should not put £250k into this new NR bond?

And why hasn't martin mentioned this in his best tables or email updates?or did he and i can't see it?

Thanks

Buildrum

It's a tad dangerous to put all your eggs in one basket. The government is only guaranteeing 100% of deposits in Northern Rock for a limited period. Once that guarantee is removed, you will only be guaranteed to recover the first 35k if the bank goes bust.

So, you need to divide the cash up into say 33k lots, so as to allow for the addition of interest bringing the total up to 35k, and put it into different banks.

SilentMinority

I have opened one of these accounts.

A couple of above posts seemed to be concerned with the timing of the interest payment in the case of annual interest accounts.

The T&Cs state:

"7(c) The dates when interest is paid are shown in the Fixed Rate Access Bond interest rate slip. We will calculate your interest up to and including these dates. We will credit interest to your Bond on the business day following its calculation."

Condition 7(d) describes how the interest calculation is handled if you have asked for the interest to be transferred to an external bank account.

I don't know what the "interest rate slip" is, but on the rear of the Certificate of Deposit there are some notes including:

"For annual interest accounts, interest will be calculated to 30 November. The first payment will be due for the period from opening the account until 30 November 2008."

So that looks like the first annual interest payment should be 1 December 2008.

buildrum

they would never get away with removing the guarantee and then within days letting the bank go under,would they?

Steve_xx

buildrum wrote: »

they would never get away with removing the guarantee and then within days letting the bank go under,would they?

It's unlikely to happen but...............it is possible. The 35k guarantee currently applies to all other banks, so if any of them went under tomorrow you'd only get the first 35k of any deposit.

buildrum

Steve_xx wrote: »

It's unlikely to happen but...............it is possible. The 35k guarantee currently applies to all other banks, so if any of them went under tomorrow you'd only get the first 35k of any deposit.

I know what you mean steve_xx,but it is tempting though...Thanks

Steve_xx

buildrum wrote: »

I know what you mean steve_xx,but it is tempting though...Thanks

Don't be tempted, but do be prudent.

Icesave have a bond that is currenty paying 6.76%, and ICICI Bank have a bond that currently pays 6.85%.

I reckon you would need to act fast to open them because it seems that interest rates are set to fall.

Froglet

Hi James.Then take my first paragraph as the answer to your question,because that is what i did,added some more a couple of days later after the initial deposit.

info_addict

Can anyone tell me how to pay directly, via BACS, into the bond from another bank. All I have received is my Certificate of Deposit, giving my account number.

The account number is over the normal 8 digits, so I suppose this will go in the "reference" box, on the BACS form.

Looking for the sort code and the 8 digit account number that Nothern Rock have allocated to this bond.

Thanks

SilentMinority

info_addict wrote: »

Can anyone tell me how to pay directly, via BACS, into the bond from another bank.

It is detailed on the Northern Rock website

http://www.northernrock.co.uk/savings/fixed-rate-access-bonds/how-it-works/

Click on "paying money in".