Birmingham Midshires Rate Change

SiuLoong

(Original info from YorkshireBoy via Stoozing.com)

Birmingham Midshires have upped the interest on their new Issue 2 eSaver from 6.51% (now equalled by B&B Issue 3 Internet Saver) to a massive 6.52%!! Just guarantees who will be top of the best buy tables I guess...

KAB_3

BM have also launched internet fixed 1 yr bond @ 7.11% AER

paulaaliwell

Yes, Birmingham Midshires are now offering 6.52% AER on Issue 2 of this account but the small print has changed.

On Issue 1 the interest was paid annually into the Savings Account. On Issue 2 the interest must be paid monthly into a separate nominated account. To my mind, this has three distinct disadvantages:

• the interest rate is no longer compound, so in fact equates to a lower 6.33%
• your nominated account needs to pay a decent rate i.e. your current account may not be a good idea
• the interest may just get swallowed up into the nominated account

I have taken out an issue 2 without realising it had changed, with my current account as the nominated account, thinking I'd just use it to make the initial balance transfer. I think I'll actually close the account now, as the way that BM suggested to get the AER was to manually put the interest back in each month - just a tad faffy!

jem16

paulaaliwell wrote: »

I have taken out an issue 2 without realising it had changed, with my current account as the nominated account, thinking I'd just use it to make the initial balance transfer. I think I'll actually close the account now, as the way that BM suggested to get the AER was to manually put the interest back in each month - just a tad faffy!

Do you have an issue 1 with them? If so you could have the interest paid into that then simply transfer it back online.

YorkshireBoy

jem16 wrote: »

Do you have an issue 1 with them? If so you could have the interest paid into that then simply transfer it back online.

With 4-6 days loss of interest each month, on the amount moved!

http://www.askbm.co.uk/savings/i/easy/product.asp?id=158&p=terms (see condition A5)

jem16

YorkshireBoy wrote: »

With 4-6 days loss of interest each month, on the amount moved!

http://www.askbm.co.uk/savings/i/easy/product.asp?id=158&p=terms (see condition A5)

Why 4-6 days?

You have your interest paid into e-saver issue 1 where I suppose you could leave it and lose no interest.

Or once it's in e-saver issue 1 transfer it to issue 2 which I believe may be 2 days lost interest. Not great I agree.

oldfella

I cant see a transfer option from the esavers - just withdrawal to the linked account ?

YorkshireBoy

jem16 wrote: »

Why 4-6 days?

You have your interest paid into e-saver issue 1 where I suppose you could leave it and lose no interest.

Or once it's in e-saver issue 1 transfer it to issue 2 which I believe may be 2 days lost interest. Not great I agree.

Hi jem16, the link I gave was to the general T&C's for all BM accounts...

If you transfer money from a Birmingham Midshires account into another Birmingham Midshires account, interest is payable from the second banking day after we complete your instructions.

Are you saying the initial transfer (from 2 to 1) would be instant? That's not my understanding from reading the above (and the account specific T&C's), which is that it's 2 days (+1?) within the organisation and 3 days outside the organisation.

Have I got it wrong?

mrseyes

I have saving bond from Birmingham Midshires Direct Internet One Year Fixed Rate 6.81% in May this year

Now they have launched internet fixed 1 yr bond @ 7.11% AER and would like to apply for this. Am i allowed to have two internet bond?

DRS1

yes. I have a couple with them - annoyingly they keep increasing the rates every time I take one out!

jem16

YorkshireBoy wrote: »

Hi jem16, the link I gave was to the general T&C's for all BM accounts...Are you saying the initial transfer (from 2 to 1) would be instant? That's not my understanding from reading the above (and the account specific T&C's), which is that it's 2 days (+1?) within the organisation and 3 days outside the organisation.

Have I got it wrong?

From what I understand (and I haven't tried it myself as I have issue 1) from this thread, you can elect to have the interest paid into your linked account or another BM account. I am assuming that if you choose to have it paid into another BM account it's not being transferred - that is where it is paid to.

I may of course be completely wrong and perhaps someone on the other thread who has actually done this would be able to confirm it.
http://forums.moneysavingexpert.com/showthread.html?t=951697&highlight=midshires