Fixed Rate Bonds - 7.10% Firstsave for 1 year and general trends

aleph_0

According to Moneyfacts FirstSave are bringing out a 7.10% one year bond(*) tomorrow; and Principality have brought out a 6.9% 9 Month bond:
http://moneyfacts.co.uk/savings/bestbuys/short-term-fixed-rate-bonds.aspx

What do people make of this? I thought with LIBOR stabilising and dropping we had reached the peak of Fixed Rates for now (BM had withdrawn the 6.87% account for example), but these accounts seems to go against that.

Edit: Oh, wow. Firstsave have a 2 and 3 year account at the same rate. Sounds slightly too desperate to me?

(* Pronounced 'fixed rate saving account')

Sillychuckie

How does one apply for this?
Is firstsave.co.uk the right place or is this a different company?

I can't find it. Thanks.
SC

aleph_0

They've updated their website now.

isofa

That's interesting!

Does anyone have experience of FirstSave, they appear to be part of FBN Bank which, if I'm right is the Nigerian bank... hmmmmm...

aleph_0

I don't think there has been much feedback about them in these forums.

However safe they might be, I must say that I'm personally not willing to put my money in, even though that is irrational. I hope that this is an indication that the high fixed rates are here for a while yet.

zzzLazyDaisy

aleph_0 wrote: »

I'm personally not willing to put my money in, even though that is irrational.

Another irrational MSE'r here

But it is good to know that the general trend seems to be up (Cahoot recently introduced a high rate fixed bond after lagging behind and losing most of my savings to other institutions). Personally I prefer to save with building societies where possible as they do not have shareholders diverting the profits and seem to me to take less risks with saver's money (though that might be an illusion!)

isofa

The reason I'd avoid the aforementioned is due to to all sorts of morality factors, including human rights abuses and corruption. I guess as a monetary risk as long as you are within the FSA limit you'll be 100% safe, still not one for me.

Geoffo_M

I've looked at their t&c on their website to see if they are covered by the FSA Compensation Scheme, but I can't see any mention. It's not in their FAQs either. I'm probably not looking in the right place, as I would have thought they would make a point of mentioning this vital info

Geoff

isofa

At the bottom of their homepage it says: "FirstSave is provided by FBN Bank (UK) Ltd, authorised and regulated by the FSA" I'm not sure if that means they are covered though...

MattB_4

aleph_0 wrote: »

What do people make of this? I thought with LIBOR stabilising and dropping we had reached the peak of Fixed Rates for now (BM had withdrawn the 6.87% account for example), but these accounts seems to go against that.

I believe swap rates have been up and down like a yo-yo of late. Without the problems of the credit crunch i think you'd be seeing fixed rates becoming less attractive against variable products, but with the need to drive net receipts into savings and a lot of maturing funds up for grabs I'd say that relative to the prevailing swaps the bond rate a might go up further. Obviously every institution wants to protect the margin on their savings book so it's going to be a bit of a game of poker!

Welcome_2

3 year bond yearly interest7.10%5.68%7.10%

whats a mega deal.. are we 10% protected?