B&B - instant access or bond

tawse57

I notice Bradford & bingley's instant access account is payign 6.40% but their 6 month bond is paying 6.50% - is locking your money up worth the extra .10% interest?

Looks like the BOE is only talking about another 0.25% cut this year so is it not doubtful that the instant account will go below 6.00%, especially as B&B seem to need deposits?

dunstonh

The fixed term deposit is worth it.

Whilst the BoE may only be suggesting that 0.25% is a possibility. Some feel that it could drop to 4.5% by the end of the year as the decision may not be in the BoEs hands.

Its fairly probable that the rate isnt going to go up so I would go with the fixed term deposit in this case.

Secret_Wookie_2

Well worth fixing in the current climate.

Jake'sGran

I applied for a one year fixed rate bond with B & B and what a painful process that was. They need you to send them various documents for proof of identity and address. I then recd a letter confirming that my bank details were correct for the direct debit?? DDs would not enter into it at all. Then my documents were returned with no comments that there was anything wrong with them. Finally my (large) cheque was returned saying it should have been made out in a different way. I have made a formal complaint about all this as my money was losing interest all this time. I then invested in a bond paying a very similar rate (about 6.8%) with a building society and the whole process took four days. My identity was checked electronically. B&B shares dropped dramatically yesterday after they announced a steep drop in profits and I believe there is more bad news to come so I am glad now that I went elsewhere.

Wurz

Jake'sGran,

I was also going to do a Brad&Bing. Which Bsoc did you go with @ 6.8%?

ScarletBea

Wurz wrote: »

Jake'sGran,

I was also going to do a Brad&Bing. Which Bsoc did you go with @ 6.8%?

Exactly the question I was going to ask!

tawse57

With my own medium term view of British house prices being anything but optimistic, I know where my money is.

And it's not with B&B.

An Insecure Home For Your Money
http://www.fool.co.uk/news/investing/company-comment/2008/02/13/an-insecure-home-for-your-money.aspx

bristolleedsfan

Wurz wrote: »

Jake'sGran,

I was also going to do a Brad&Bing. Which Bsoc did you go with @ 6.8%?

That was when 1 year fixes were 6.8% and 6.9%. ( up until mid jan)

Personally id skip 6 months fixes and fix for at least a year, any xtra interest on 6 months bonds are lost with having to move the money again at the end of the 6 months.

Subject to what ICICI Bank are offering this is one of the highest paying 12 minth fixed rates.

http://www.angloirishbank.co.uk/personal/fixed-rate-bond-accounts.asp?utm_source=Moneyfacts%2BBest%2BBuy&utm_medium=CPC&utm_content=Fixed%2BRate%2BAccount&utm_campaign=Moneyfacts%2BBest%2BBuy

Jake'sGran

Wurz wrote: »

Jake'sGran,

I was also going to do a Brad&Bing. Which Bsoc did you go with @ 6.8%?

It is the Stroud & Swindon and you won't believe it but I can't remember the precise interest figure but you will soon find it on their web site. It is not even in the pass book they sent which is rather unusual. It was only very slightly less than B & B. Incidentally, I have just been reading the forum of a company called iii.co.uk and there are a lot of posts about B&B. Interesting reading!.

Wurz

Popped in to my local B&B's this afternoon and whilst discussing the 6 month fixed saw another account called "What If". It's an instant access which will pay monthly income and has a two-tiered % rate. 6.5% for the first 6 months and then 5.5% for the next 6. So, the same 6 month rate as the fixed term, but answers bristolleedsfan's thought of the interest lost when deciding what to do at the end of the fixed term.

I was thinking the same with the Lloyds 6 month fixed (until I realised that the max you could put in was £20k) and that same question was niggling me with the B&B's 6 month one. I asked B&B's and they said at the end of the 6 months the fixed term would drop to 1.5%. Obviously one would want to move quick with that.

The "What If" account gives you the options of pulling your money at any time with no penalty so if another term comes along you could switch.

I'm sure some of the regulars like dunstonh, edinvestor or jamesd could "comment" on this!

Just as I posted, saw Jake'sGrans above so will be interested in more info. I didn't open the account today thinking I would give it overnight for any comments. If nothing too adverse may well open one tomorrow

tawse57

iii.co.uk - what a frustrating forum it uses. Painful to use IMPO.