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Yorkshire Building Society - 2 Year Fixed Rate Bond

KeithEssex_2
KeithEssex_2 Posts: 224 Forumite
in Savings & investments
YBS released a new 2 year bond today with a good fixed rate for this period.

It pays 6.50% AER with a choice of either annual or monthly interest. If monthly then this must be transferred to another account.

It has the major plus of not being Icelandic.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/05/17/cniceland117.xml

Unfortunately the 1 year bond remains at 6.2%.
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Comments

  • KTF
    KTF Posts: 4,855 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    KeithEssex wrote: »
    It has the major plus of not being Icelandic.
    Why is this a major plus?
  • RayWolfe
    RayWolfe Posts: 3,045 Forumite
    1,000 Posts Combo Breaker
    By gum lad, don't thee know owt?
  • KeithEssex_2
    KeithEssex_2 Posts: 224 Forumite
    KTF wrote: »
    Why is this a major plus?

    Scandinavians unite to end Iceland's financial chaos
    Daily Telegraph - 18/05/08

    "Paul Rawkins, of Fitch Ratings, said the country's external debt had reached $97bn, five times the size of the economy. " The markets had begun to doubt whether the government had the resources to rescue the banks," he said.

    Iceland has evolved into a sovereign hedge fund.

    With a home economy the size of Bristol, its banks have borrowed massively on the global capital markets to launch raids on companies across Europe.

    The high-wire act has now come to grief. The central bank has lifted interest rates to 15.5pc to stop double-digit inflation spiralling out of control.

    The government expects the country's economy to contract by 4pc over the next two years."
  • ManAtHome
    ManAtHome Posts: 8,512 Forumite
    Part of the Furniture Combo Breaker
    You missed the bit about other Nordic banks extending them 1.5bn, about the same amount as BoE is extending PER DAY to UK banks...
  • poppy10_2
    poppy10_2 Posts: 6,597 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    KeithEssex wrote: »
    YBS released a new 2 year bond today with a good fixed rate for this period.

    It pays 6.50% AER with a choice of either annual or monthly interest

    That's rubbish! :confused:
    poppy10
  • RichyRich
    RichyRich Posts: 2,091 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    poppy10 wrote: »
    KeithEssex wrote:
    YBS released a new 2 year bond today with a good fixed rate for this period.

    It pays 6.50% AER with a choice of either annual or monthly interest
    That's rubbish! :confused:


    No it's not!
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    #060 Save £12k in 2017 Challenge: £11,03.70/£12,000.00 Beginning Balance: £12,976.79 Shortfall: £996.30:eek:
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  • poppy10_2
    poppy10_2 Posts: 6,597 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Rubbish as in a rubbish rate, not rubbish as in I don't believe it exists.
    poppy10
  • KeithEssex_2
    KeithEssex_2 Posts: 224 Forumite
    poppy10 wrote: »
    That's rubbish! :confused:

    For a TWO year rate it is only beaten (to my knowledge) by ICESAVE at 6.60%.

    I suspect you are comparing to the ICESAVE 1 year rate of 7.01% AER.

    For a UK Bank/Building society I haven't seen a better one !!
  • KeithEssex_2
    KeithEssex_2 Posts: 224 Forumite
    ManAtHome wrote: »
    You missed the bit about other Nordic banks extending them 1.5bn, about the same amount as BoE is extending PER DAY to UK banks...

    Sure - I appreciate that but I still have major concerns about such a small country (population, reserves etc.) resolving a major banking crisis whilst they are struggling with their economy being in a right mess ! Even with the help of their neighbours.
  • ManAtHome
    ManAtHome Posts: 8,512 Forumite
    Part of the Furniture Combo Breaker
    It may be - there were better 2 year rates on offer when "the crunch" was "over real soon now" 6 months ago. Currently sticking to the 1 year rates around 7%, possibly more to come next year when (IMHO) times may be harder.
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