Northern Rock,new account.

Spad_2

Can somebody please explain to a senior what the difference is between a bond and an e saver account other than the interest rate.? Is one better than the other.?
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Thanks

bristolleedsfan

Spad wrote: »

Can somebody please explain to a senior what the difference is between a bond and an e saver account other than the interest rate.? Is one better than the other.?
.
Thanks

Term "bond" is misused as u will see from this linked article.

Those incorrectly using the term "bond" should merely be using the term "fixed rate account", e saver is an account operated online which can be easy access, notice account or a fixed rate account e-saver.

http://www.fool.com/school/basics/basics05.htm

SirSaveALot_2

Spad wrote: »

Can somebody please explain to a senior what the difference is between a bond and an e saver account other than the interest rate.? Is one better than the other.?
.
Thanks

Well a "bond" (savings product, not investment kind of bond) normally means a fixed rate and fixed term.

The particular one being discussed in this thread http://www.northernrock.co.uk/savings/fixed-rate-access-bonds/ is unusual in that you can withdraw from it before the end of the fixed rate term.

It's a rather good rate, 6.9%, and is fixed until Jan 2009, whereas interest rates on variable accounts may go down in the near future.

It's limited edition so if you want one, hurry. I opened mine by going into a branch with a completed application form. It was opened immediately, and I got an account number that so I can add to it electronically - provided they don't close it before I can free up the money.

HTH

Spad_2

Spad wrote: »

Can somebody please explain to a senior what the difference is between a bond and an e saver account other than the interest rate.? Is one better than the other.?
.
Thanks

.
Many thanks BLF and SSAL. I'll get my application in tomorrow and move out of my AL account being the 1st of the Month. I assume it would be better to get the interest Annual if I can live without it?
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Thanks
Alan

bristolleedsfan

SirSaveALot wrote: »

Well a "bond" (savings product, not investment kind of bond) normally means a fixed rate and fixed term.

The particular one being discussed in this thread http://www.northernrock.co.uk/savings/fixed-rate-access-bonds/ is unusual in that you can withdraw from it before the end of the fixed rate term.

The question wasnt how good is this account, question was what is the difference between a bond and a e-saver, slipped your mind that providers offer "fixed rate e-savers".

http://forums.moneysavingexpert.com/showthread.html?t=668401


Being able to withdraw from a Fixed Rate Account is not as unusual as some people believe, Leeds BS often offer fixes where 50% of the investment can be withdrawn without penalty and above linked Coventry BS Fixed Rate allows instant withdrawals as well.

RayWolfe

Really? The Leeds one is limited and I can't recall any others that are fixed and have unlimited withdrawal, but I'm prepared to be corrected.

bristolleedsfan

RayWolfe wrote: »

Really? The Leeds one is limited and I can't recall any others that are fixed and have unlimited withdrawal, but I'm prepared to be corrected.

SirSavealot said " unusual that you can withdraw from it", SirSavealot didnt mention the words "unlimited" :rolleyes:

Coventry Over 50 Fixed Rate E-Saver which i mentioned in post you replied to allows "unlimited" withdrawals. :rolleyes:

http://www.coventrybuildingsociety.co.uk/savings/ProductFeatures.aspx?ProdCode=FPES

I have laughed for weeks Mr Wolfe you do seem to have some compulsion to post something about anything on every post u see, u followed on from an answer i had already given in ISA section other day merely confirming the answer i had already given. :rolleyes:

http://forums.moneysavingexpert.com/showthread.html?t=401374&page=29

I was thanked, u werent, enuff said Mr Wolfe. :rolleyes:

Starting posts isnt your strongest point Mr Wolfe is it. :rolleyes:

http://forums.moneysavingexpert.com/search.html?searchid=19310497

sloughflint

bristolleedsfan wrote: »

I have laughed for weeks Mr Wolfe

Did you read post 37 here BLF?
http://forums.moneysavingexpert.com/showthread.html?t=704113
I agree with this poster's sentiment.

bristolleedsfan

sloughflint wrote: »

Did you read post 37 here BLF?
http://forums.moneysavingexpert.com/showthread.html?t=704113
I agree with this poster's sentiment.

Snap, :T i agree with that posters sentiments as well. :j

Hopefully Mr Wolfe will do something about his apparent compulsion of following up on my posts. :beer:

SirSaveALot_2

bristolleedsfan wrote: »

The question wasnt how good is this account, question was what is the difference between a bond and a e-saver, slipped your mind that providers offer "fixed rate e-savers".

http://forums.moneysavingexpert.com/showthread.html?t=668401


Being able to withdraw from a Fixed Rate Account is not as unusual as some people believe, Leeds BS often offer fixes where 50% of the investment can be withdrawn without penalty and above linked Coventry BS Fixed Rate allows instant withdrawals as well.

You are right that I didn't answer the direct question - that was because I wasn't sure if the orignal poster was comparing 2 specific products or the general terms. I'm a newcomer round here, and I'm not claiming to know every product.

The original poster did ask, "is one better than the other?" and as it's in this thread I explained what is good about this one.

I am still happy with my choice of word "unusual".;)

I wasn't disagreeing with your intermediate post, in fact I wrote my post before I saw yours. Combined, I think they probably gave the original poster the infromation they needed.

Enough meta-discussion... I hope the original poster found my answer useful, anyway :beer:

cheerio