Building Society's

HMSM · 11 September 2007 at 11:54AM

Hi,

Can anyone help.

I was once told that it is a good idea to stick with a building society incase they merge with a bank and give their customers a pay out. Is there any truth in this?

I am thinking of moving my ISA from the West Bromwich Building Society where I get 5.6% to the NS & I Direct ISA with 6.3%.

Rikki · 11 September 2007 at 11:59AM

I may be wrong but I don't think you can transfer into an NS&I Direct ISA.

Rafter · 11 September 2007 at 12:02PM

Depends when you joined West Bromwich. If you haven't had the account for that long it may be that you waived your right to any conversion bonus.

Otherwise it might be worth leaving £100 with the West Brom just in case.

The number of building societies converting has reduced considerably since the 90's, although you sometimes get a bonus if a society merges with another like the Portman members who have recently been taken over by Nationwide.

R.

Rikki · 11 September 2007 at 12:03PM

Direct ISA key features

* Invest online and by phone only with a debit card
* Interest rate guaranteed to be 0.55% above base rate until 5 April 2008
* Consistent interest rate: no short-term introductory bonus
* Convenience of opening and managing account online and by phone
* Minimum deposit: £1,000
* Minimum further deposit: £250 (or £100 by standing order)
* Withdrawals: apply online or by phone
* Minimum withdrawal: £250 to nominated bank account
* Invest from 6 April 2006
* All interest free of UK income tax
* Direct ISA will be open to new customers and those who have an NS&I Cash mini ISA, but it will not be possible to transfer into NS&I’s Direct ISA from any other ISA provider. This is to attract and retain customers who wish to save with NS&I because of the security, value and accessibility on offer.

NEW DIRECT ISA FROM NS&I

Old_Slaphead · 11 September 2007 at 12:58PM

HMSM wrote: »

Hi,

Can anyone help.

I was once told that it is a good idea to stick with a building society incase they merge with a bank and give their customers a pay out. Is there any truth in this?

I am thinking of moving my ISA from the West Bromwich Building Society where I get 5.6% to the NS & I Direct ISA with 6.3%.

WestBrom are (or were a few days ago) offering a branch based 6.4% 2 year FR ISA.
For variable rates Kent Reliance BS are offering 6.21% and accept transfers in.

Rafter · 11 September 2007 at 1:05PM

Sounds like National Savings don't want too many rate tarts! - Not surprising at those rates.

HMSM, it depends how much you have saved up and whether you are still saving. You could cash in some of your West Brom ISA and invest in the NS&I one - but that would mean you have lost this years ISA allowance.

R.

Old_Slaphead · 11 September 2007 at 1:55PM

NSI only offers it's rate guarantee until 5/4/2008 - after that the rate offered may be less competitive.

baby_boomer · 11 September 2007 at 4:51PM

A bird in the hand beats two in the bush (an unlikely windfall) hands down.

The chairman of the Building Societies Association has poured cold water on the prospect of any immediate mergers.

And the driving force behind recent mergers (Portman BS) no longer exists.

So transfer your ISA to the most competitive rate you can find and enjoy the savings bonanza brought about by the banks' current credit problems

.

steady__eddie · 11 September 2007 at 5:44PM

"WestBrom are (or were a few days ago) offering a branch based 6.4% 2 year FR ISA"

They were still offering it yesterday when I popped in for a leaflet, (couldn't find any details on their website). The teller hadn't heard of the product and had to consult with supervision. It transpired that, "I had to return for an interview". I explained that I did not want to commit myself but just wanted to read the T + C s. No joy, so I did return later on and the joys of Guaranteed Equity Bonds were rammed down my throat. I can imagine how timeshare victims must feel. Eventually I managed to get my grubbys on a leaflet. Being pedantic, it is not a 2 year fix but fixed until 05/04/09 (19 months or thereabouts). At maturity, funds can be placed in a similer fixed rate ISA or if not available, the Societys variable rate ISA (currently 5.3%). If, "the Society does not have an appropriate variable rate ISA at that time, then the funds will attract interest at the same rate as the top band of the Society's Premium Share Account or other equivalent no notice access account then being offered". (the top band of the Society's Premium Share Account is currently 6%).

Old_Slaphead · 11 September 2007 at 8:33PM

Thanks for that info s_e

Was going to call (out of my way) into WBBS on Friday and transfer my matured 5 yr Leeds FR ISA - don't think I'll bother now. Might just add it to my Ruffler loot.

Old_Slaphead · 11 September 2007 at 8:37PM

baby_boomer wrote: »

So transfer your ISA to the most competitive rate you can find and enjoy the savings bonanza brought about by the banks' current credit problems .

I've not yet seen any changes to ISA rates brought on my banks' current probs. ISAs are seen as stable cheap money for banks/BSs - why are very few offering ISA 1 year fix interest at same rate as 1 year bonds ??

Building Society's

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