Factors opening a Principality BS account

lr1277

Hi

I am considering opening a instant saver account with PBS. But the factors I am weighing are:

Plus:
6.3% interest rate
internet access
Money protected by compensation scheme

Minus:
What kind of trouble are PBS in if they need to offer 6.3%?
They send the date to be processed abroad (which could be how they afford the 6.3%)
One or two negative comments on this forum about PBS.
If things went pear shaped, the money would be protected, but it would take time to get back.

I am currently opening a cash ISA so this would be the instant access account where I build up my savings incase my life/situation goes pear shaped.
Do you have any thoughts on my issues?

RayWolfe

The last Building Society to go bust was in about 1955. It was called the State Building Society and depositors lost nothing.
There are more important things to lose sleep about than this. Deposit with them, as I am doing, or give them a miss and put your money with HSBC who have most of their assets in the far east.

AQUA-IAN

I have held a Principality Building Society Account for many years and in the past even held a mortgage through them.

Why are so many threads talking about the 35k threshhold and worrying about protection? I have decided to invest outside of the UK banks because they are offering the best rates at the moment and for that reason I get the best possible return. I have no problem investing with ICICI or Kaupthing Edge.

bristolleedsfan

Principality held its E-Saver and Online ISA rates following the December Base Rate decrease in order to be in/stay in the best buy tables. ( nothing wrong with that)

Any rate changes following February Base Rate decrease are likely to occur around 1 March so current rates may be artificially high.

Rafter

Since the city stopped lending to mortgage banks they are having to get the funds to run their business from savers - which means better returns for savers.

Unlike many on here - I feel safe investing in UK building societies because they haven't been 'chasing profit' like some of the banks that have grown to fast and either got into trouble (Northern Rock) or who are now finding it tough to fund their businesses without offering 'too good to be true' rates (Kaupthing).

Unless you really believe that the UK is about to enter a monumental recession and the entire banking system is on the verge of collapse, then putting money in UK Banks or building societies is safe. If you don't then buy gold or get a safe and keep the money in cash!

R.