West Bromich E Bond 6.86%

funkey_monkey

Hi,

I think I've finally settled on what account to put my £35k into. I'm learning all the time here:D :A

It's the following: http://www.westbrom.co.uk/westbrom/savings.product?id=3505&FROM_CAMPAIGN=true&CAMPAIGN_SRC=SAVINGS_HOME

Now I believe that the annual interest rate will give me a return (based on 6 months) of 6.75%Gross, 5.4% net. Whereas the monthly interest rate will provide me with 6.55% gross, 5.24% net.

Which should I use to determine if there is a noticeable difference between the two interest payment options?

Looks like a good option???


Thanks.

tawse57

In the current economic climate I personally am wary of tying any of my money up in an account/bond that does not have instant access. Why not consider the bond from Northern Rock for 6 months that also has instant access?

The shockwaves from the global credit crunch have still to fully hit the UK. All the write-downs by banks so far have been due to the US housing market tanking. The UK is probably 12 months behind the US and I personally think we are going to see a lot of financial institutions in trouble towards the end of this year/begining of next.

Btw, don't put 35K into any one organisation as if it goes bust then you will only get your 35K back and not any interest it might have earnt. Spread it around a bit. In these times sacrificing better IRs in favour of some security makes sense surely?

funkey_monkey

I was advised on ThisIsMoney that it was the account i wanted. their site states the West Brom has a 6 month fixed term account.

I think it is based on:
Paying 6.75% gross per annum, 6.86% AER fixed to 31/08/2008. (Assuming investment made on 08/02/2008); a monthly income option is available.

Otherwise, where on their site is the 6 month fixed term account?

bristolleedsfan

funkey_monkey wrote: »

I was advised on ThisIsMoney that it was the account i wanted. their site states the West Brom has a 6 month fixed term account.

I think it is based on:
Paying 6.75% gross per annum, 6.86% AER fixed to 31/08/2008. (Assuming investment made on 08/02/2008); a monthly income option is available.

Otherwise, where on their site is the 6 month fixed term account?

Less loss of interest when u move the funds elsewhere at the end of august, with fixed rates in all probability lower then as well, personally id fix for at least 12 months.

tradetime

Does anyone know how they veryfy your id/address, is this another solicitor verification job? Solicitors must be laughing all the way to the bank.

tawse57

It appears you can take money out via BACs with the West Brom bond but you have to send a cheque through a post - assuming you do not have a branch near you and the closest one to me is about 100 miles away in mid-Wales which is a long, long drive through country roads.

Is it bad banking to save with a bank that it is physically difficult for you to get to a phyiscal branch?

Have to be honest, if I could open one of those bond via BACs I would do so today but I have little faith in the Post Office these days re cheques. Also, am also a bit reluctant about the whole proof of identity thing as it is a tad unclear on their site and, again, I don't wish to be sending documents through the post.

tawse57

Oh, btw, never heard of a solicitor having to verify someone to open a bank account in, well, decades. I suspect there is a substantial charge for this?

tradetime

tawse57 wrote: »

Oh, btw, never heard of a solicitor having to verify someone to open a bank account in, well, decades. I suspect there is a substantial charge for this?

So far I have avoided it by visiting the banks in person with documents to have my identity verified, however opening an NS&I acct at the moment and they require id verification so I guess I will find out. I'd estimate it to be £10 - £20 per document

Stavros_3

This looks like a good fixed rate product

bristolleedsfan

tradetime wrote: »

So far I have avoided it by visiting the banks in person with documents to have my identity verified, however opening an NS&I acct at the moment and they require id verification so I guess I will find out. I'd estimate it to be £10 - £20 per document

Post Offices will verify copies of original documents for free.

tradetime

bristolleedsfan wrote: »

Post Offices will verify copies of original documents for free.

I'll have to look at the paperwork, but I'm pretty sure the NS&I specifically says PO's won't verify the documentation. Nice idea though.

Yup, big outsized and boldened font (I'll spare you that)

Post Office branches cannot certify documents for NS&I applications

The acronym BOHICA springs to mind