BirminghamMidshire Direct INternet Savings Bond....deposits?

terrimolo

I suppose the title says it all really...I'm looking into opening the direct investment fixed rrate bond where the interest is paid monthly. does anyone know if i can make deposits into (definitely not out of...wait thats not a deposit is it? never mind, i wont be withdrawing anything) the account during the one year?

i was looking at this and the heritable bank fixed rate bond, but if i can't make deposits then its not really any use to me at all, as a student, i'll be earning the majority of my cash over summer and don't want to leave that sitting in a rubbish account collecting dust cos then i'll be too tempted to spend it!!!

nrsql

Usually you buy a bond and that's it until it matures.

cyclonebri1

I'm pretty sure you can as the opening balance is only£1.

Its quite clear on the website/T&C if you check through it:money:

nrsql

hmmm

The term of the account will run from the date of the first deposit.
Withdrawals and closure will not be allowed during the term of the investment,
Additional deposits are permitted as long as the issue remains open.

So you could open it with one pound. That defines the close date of your bond and interest rate. You could then add funds later and get a shorter fixed term at the same rate as long as the issue remains open. My guess is that this won't remain open for too long unless their rates go up.

Mikeyorks

terrimolo wrote: »

i'll be earning the majority of my cash over summer

The fixed rate product doesn't appear to fit too well with your money profile!

Consider a 'regular saver' (typically 7% - 8% at the moment) that allows you to vary the monthly sum (typically £10 - £250). A much better product for 'new money'. The fixed rate products tend to better fit where you have the cash available at the time of opening.