Brad & Bingley BS Savings Bond Terms

Bluebird1_2

My wife purchased a 1 year Fixed Rate Bond in January his year and invested £40. With all the problems at B&B she looked at the terms of the bond to see if she could remove between £5k and £10 to another account because she knew she was covered by the FSA for £35k. The detailed terms arrived after signing the certificate. She did expect penalties for any withdrawals in an emergency. However the term state no additions and no withdrawals except on death via the depth. So if the B&B go down there is nothing we can do to save the savings over £35k. Anybody else had this problem and is there anything you was able to do.

isofa

If the T+Cs state absolutely no withdrawals, unless the holder dies, then there isn't much you can do unfortunately.

However B+B won't collapse, and you won't loose any money, so rest easy.

If it did get to that point, as it did with Northern Rock, the government will step in and save depositors money. There is no way in the current climate the government could do anything else. They have already set a precedence with NR, otherwise they would be a total loss of confidence in the banking sector and everyone would withdraw their money from everywhere!

KeithEssex_2

Bluebird1 wrote: »

My wife purchased a 1 year Fixed Rate Bond in January his year and invested £40. With all the problems at B&B she looked at the terms of the bond to see if she could remove between £5k and £10 to another account because she knew she was covered by the FSA for £35k. The detailed terms arrived after signing the certificate. She did expect penalties for any withdrawals in an emergency. However the term state no additions and no withdrawals except on death via the depth. So if the B&B go down there is nothing we can do to save the savings over £35k. Anybody else had this problem and is there anything you was able to do.

It won't go bust - it will probably just be bought out for it's retail customer base.

You really don't need to worry. The government is already talking with the FSA about increasing the compensation level above the current level to around £50k and they would do the same as Northern Rock anyway.

No saver has lost a penny with Northern Rock - the exposure has been 100% with the shareholders.

free4440273

^yep; it's the shareholders who need to do most of the worrying.

bristolleedsfan

Thought my eyes were playing tricks. :rotfl:

http://forums.moneysavingexpert.com/showthread.html?t=972211