Northern Rock Fixed Rate Bond Ripoff

hansi

I put 5k in a NR fixed rate bond last December at 5% which would make me £350 over the year. I got my maturity letter today listing various other savings options like they do. However, I want to withdraw the total amount to pay for a holiday and thought (silly me) that they could do a BACS transfer into my bank account. Not so! I can either have the money sent to me in the form of a cheque or I can have it by CHAPS telegraphic transfer for which they charge £35!!!! Because, and I quote "BACS payents are not available for this maturity" That reduces the interest somewhat eh? I have to settle for the cheque, but I'm going to write and complain, because they don't mention this is any of their literature unless it's hidden in their small print. No doubt they've covered themselves, but what a scam!

Unbelievable_2

I have a 1yr bond with NR maturing 1 December. The interest was payable on 1 November and they paid that (by BACS) straight into my current account. I haven't had any paperwork from them yet, but I rang to ask how the funds would be paid. I was told that I could transfer the money into a Northern Rock on-line tracker account. From there I can BACS it to a current account. She didn't mention CHAPS at all! ???

derrick

Love to know how you got £350 on £5000 @ 5% over 1 year. I make it £250. Good luck if that`s what you got

hansi

Whoops, typo error, should be £250!! :-[ but £35 to withdraw it? No way!

hansi

I have a 1yr bond with NR maturing 1 December. The interest was payable on 1 November and they paid that (by BACS) straight into my current account. I haven't had any paperwork from them yet, but I rang to ask how the funds would be paid. I was told that I could transfer the money into a Northern Rock on-line tracker account. From there I can BACS it to a current account. She didn't mention CHAPS at all! ???

Maybe, but why should I have to go through the hassle of having to open an account just to transfer my money out!

Unbelievable_2

True - I agree. But if you're already a NR customer how hard can it be, and it's got to be better than waiting for a cheque to arrive and then to clear ::)