Northern Rock,new account.

sindy_2

speaking as a novice can someone tell me if I'm right....If I open a NR Bond savings account with £550 pounds I can expect to recieve a monthly 6.9% rate of £37.95 into my nominated bank account until January 2009?

thanks

Beate

No it's an ANNUAL rate before tax.

Steve_xx

sindy wrote: »

speaking as a novice can someone tell me if I'm right....If I open a NR Bond savings account with £550 pounds I can expect to recieve a monthly 6.9% rate of £37.95 into my nominated bank account until January 2009?

thanks

No. You would earn £37.95 in interest if you left it there for the whole of the 12 month period. Then the interest would be subject to 20% (or 40% if you are a igher rate taxpayer) tax which would leave you with £30.36, plus the initial £550 of course.

worrypants

sindy
if you opt for monthly interest the rate is 6.70%
so you would receive £3.07 per month if you are not taxed on your savings if you invest £550

Steve_xx

molly_mandy wrote: »

Re: losing the loyalty bonus if you open the bond.

The info. on the NR savings site, it seems to confirm that the bond "can be opened with an initial deposit of just £1 * "

and the asterisk below states :

" *if you transfer money from an existing account you won't be eligible for your loyalty bonus of 0.5% gross "

so I guess you do lose your bonus.

I'm not sure that this is the case. The terms below state that the bonus is payable to people who keep their accounts open from 1 Dec to March 2008. This new Fixed Rate Access Bond account wasn't available on 1 December, was it?

Are you sugesting that it might be possible to get 6.9%, plus a further 0.5% on this new bond?

A 0.50% gross1 bonus for all our existing savers

Our customers mean a lot to us and we would like to say thank you and reward your loyalty by giving you an extra guaranteed 0.50% gross1 bonus for staying with us.

The bonus applies to all customers who keep their account open from 1 December 2007 until March 2008. It is payable on both existing balances plus any new money you wish to invest into your account. The bonus will be calculated daily on the balance of your Account between 1 January 2008 and 1 March 2008. Any interest which is payable due to this bonus will be added to your Account shortly after 1 March 2008. If you transfer money from an existing Northern Rock account you may not be eligible for your loyalty bonus of 0.50% gross. If you need further information regarding the loyalty bonus please contact us.

sloughflint

worrypants wrote: »

sindy
if you opt for monthly interest the rate is 6.70%
so you would receive £3.07 per month if you are not taxed on your savings if you invest £550

No the aer is still 6.9% so £37.95 gross was correct over the year if left untouched.You haven't accounted for the compounding

sloughflint

molly_mandy wrote: »

so I guess you do lose your bonus.

I disagree but it is very ambiguous:

If you transfer money from an existing account you won't be eligible for your loyalty bonus of 0.5% gross

No mention of to which is how I think you read this.
I note they also used the word "may"
I'm assuming the bonus cannot apply to the bond ( too new a product) only the silver saver even though it is on the same page as the bond.

molly_mandy_2

sloughflint - I'm very confused as this is the page I read it on
http://www.northernrock.co.uk/savings/

Follow the * after the £1. in the bond black box. There's no 'may' in that line.

I did ring N.Rock but had a very vague girl this morning. First she said I was already getting my bonus each month. I pointed out I thought it would come in March. She went away for ages to ask. Came back and said I 'should' get it. She wasn't sure if I moved some money to the bond if I would lose it. I gave up !

I've emailed them for confirmation of what they mean.

sloughflint

molly_mandy wrote: »

sloughflint - I'm very confused as this is the page I read it on
http://www.northernrock.co.uk/savings/

Follow the * after the £1. in the bond black box. There's no 'may' in that line.

I did ring N.Rock but had a very vague girl this morning. First she said I was already getting my bonus each month. I pointed out I thought it would come in March. She went away for ages to ask. Came back and said I 'should' get it. She wasn't sure if I moved some money to the bond if I would lose it. I gave up !

I've emailed them for confirmation of what they mean.

Aaah, I see what you mean now. And I was looking at the home page statement.What a bunch of idiots! They are contradicting themselves. So who knows but what you saw makes it look very likely that they won't pay up.

Beate

I was just telling some friends that I am considering opening a bond with Northern Rock and they looked at me with this totally horrified look on their faces, saying "Don't invest in Northern Rock, they are going under!" Erm, well first of all at least the first £35,000 are 100% guaranteed by the government, aren't they, and secondly I know they are going through a troubled time, but this bond allows withdrawal of money at any time, so where is the danger? Am I missing something or are my friends just scaremongerers?