Birmingham & midshires 1 year bond warning

metrobus

It has taken 2 weeks since I sent the cheque to them to set it up so thats 2 weeks loss of interest.

Also on reading the customer service guide it states if you decide to transfer
your funds directly to another bank/building society after the 1 year is complete they charge a £35 fee.

Or you can have a cheque by post which when taking everything into account will cost you around another 1 weeks interest so all in all you loss 3 weeks interest.

Ive only invested £6k into one but loss £21.46 (3 weeks of 6.2% where the funds came from) to gain (0.56% of £6k) £33.60.

So I am better off £12.14 but have the money tied up for 1 year and had all the hassle setting the thing up,it really is not worth it.

derrick

metrobus wrote: »

It has taken 2 weeks since I sent the cheque to them to set it up so thats 2 weeks loss of interest.

Also on reading the customer service guide it states if you decide to transfer
your funds directly to another bank/building society after the 1 year is complete they charge a £35 fee.

Or you can have a cheque by post which when taking everything into account will cost you around another 1 weeks interest so all in all you loss 3 weeks interest.

Ive only invested £6k into one but loss £21.46 (3 weeks of 6.2% where the funds came from) to gain (0.56% of £6k) £33.60.

So I am better off £12.14 but have the money tied up for 1 year and had all the hassle setting the thing up,it really is not worth it.

If it was a cheque drawn on your personal acc, you will still earn interest in the account until the cheque is presented so it will not be 2 weeks, if drawn from another institution then yes it will not be earning interest from the date on cheque.


The £35 fee will be for a CHAPS transfer, using BACS will cost nothing and by that time should be same day transfer.

metrobus

yes it was from another institution,and under the withdrawl options it does not give BACS.

derrick

metrobus wrote: »

yes it was from another institution,and under the withdrawl options it does not give BACS.

Assuming have the right page; - http://www.askbm.co.uk/savings/i/fixed/product.asp?id=149&p=terms

"15. On the first year anniversary of the first deposit, the account will revert to an easy access account of our choice."

Surely you will then have the opportunity to use BACS?

Mikeyorks

I've had several fixed rate Bonds with BM and, overall, found them to be very efficient. No real loss of interest on the set up, as I judged it right and moved money to my current account the night before the cheque cleared.

Bit of a pest getting a cheque back, I agree. But the 6.9% I was getting ... more than compensated. Afraid you always have to weigh the pros and cons .. before you buy?

Speculator

I sent my cheque on Monday, I transferred money to cover the cheque on Thursday 00.05 and the cheque was paid into my BM Bond on Wednesday, so no days loss of interest for me bearing in mind for "fixed term accounts interest is calculated from the first banking day."

metrobus

"Surely you will then have the opportunity to use BACS"

Not without setting up a internet acc with them and going through the trouble of getting in touch with them after the bond has finished to find which "account of their choice" my money has gone into or visting a branch which they do not have around here.

End of the day they should not charge for a direct transfer to any account of our choice once the 1 year is up,instead they try to catch you wth the £35 fee.

bristolleedsfan

DIRECT ONE YEAR INTERNET FIXED RATE BOND paying 6.81% will be withdrawn w.e.f. close of business 9.5.08 and a new issue launched w.e.f. 10.5.08: a one year fixed term internet operated account with a minimum investment of £1 paying 6.88% on maturity (6.67% monthly). No earlier access permitted. Further additions allowed whilst issue remains open...

https://www.emoneyfacts.co.uk/news/savings-news.aspx