Monday, June 9, 2008
Nice rate – thought I’d post this as it’s the best rate I’ve seen for a while. It poos on my NR rate so will most likely transfer.
Abbey issues one year fixed rate bond paying 7.01%
Abbey Savings has launched a special one-year savings account for customers looking for a guaranteed return on an amount of money they can lock away for one year. This is a strictly limited offer and will be subject to availability. Term: 1 year Tier: £30,000 - £2 million Gross rate p.a./AER : 7.01% Net rate p.a. : 5.61% Abbey is backed by the financial strength and stability of Santander - a top ten global bank by tier one capital, profit and market capitalisation.
Posted by tyrellcorporation @ 03:43 PM (1796 views)
19 thoughts on “Nice rate – thought I’d post this as it’s the best rate I’ve seen for a while. It poos on my NR rate so will most likely transfer.”
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waitingfor hpc says:
ING offering 6.5% for six months fixed term as well.
hpwatcher says:
give it 3 months and they will be offering 9%
str 2007 says:
‘Abbey is backed by the financial strength and stability of Santander’
I don’t know why but there is just something that bothers me about that statement
Thanks anyway for the info TC.
I assume upto 35k is covered under the FSA insurance.
cornishman says:
I locked into some 1-year deals last year and then regretted it as rates went up shortly after. hpwatcher has a point. There may well be better deals in a few months’ time.
And can you trust a bank based in Spain…?
japanese uncle says:
I am not 100% sure about the security of Abbey’s parent Santander. How big/vicous exposure does it have in the Spanish housing market which is collapsing as spectacularly as the UK’s?.
pelethar says:
Still waiting on any decent offers on flexible savings accounts though. The banks are not yet taking decisive action to increase deposits; I suspect they have simply decided salvation does not lie down that particular road.
jonb says:
First Save is 7.1%, but it is a Nigerian Bank. Icesave is 7.01%, but it is Icelandic. Bradford and Bingley is 7% and we know what problems they are having.
@pelethar – They are going for fixed deposits in a big way because you can’t withdraw them before the term is up. That reduces the risk of a run on the savings, or of people just taking the money out to get a better rate elsewhere.
Big_jay says:
The biggest problem with Abbey will be withdrawing your money at the end of the term. You have been warned. Both my wife and I had massive problems transfering our ISA to Lloyds TSB, it took over 3-months and many phone calls. In the end I told the Abbey this would be my last phone call because I was in the process of contacting WatchDog – it then took three days to transfer.
str 2007 says:
@ Cornishman and JU
Wasn’t there a story recently (3-4 months ago) about Santander selling off most of it’s commercial property in Spain.
I don’t know if this was to then lease back, raising money for something else ?
Whilst I can’t see me buying a house for more than a year, I’m not sure these are times to have alot of money locked up for a year.
pelethar says:
Yes, I understand but the fact is these fixed term or bond accounts are unattractive to a lot of people – probably the majority of potential savers actually. They will only significantly increase their savings deposits when they collectively make a fundamental decision to try and do so.
Most of the high street savings accounts on offer now are pathetic. Very difficult to get 5%+ without conditions attached (eg initial bonus, annual interest, capped deposits or withdrawals, etc etc).
str 2007 says:
Jonb
I didn’t know First Save had anything to do with Nigeria – can you imagine a worse place to put any money – perhaps I’m giving them bad press but doesn’t Nigeria have a ‘mirror’ bank account for most High Street names. (Phishing)
tyrellcorporation says:
Thx for your comments on this guys. I’m fixed in at NR at 5.7% (monthly interest payable) so 7.01% looks pretty attractive especially when the BoE are doing precious little to calm inflation. I can pay a smallish penalty to hoik the money out of NR but need to look at the details. I think high savings rates from a UK high street bank ARE a sign of a distressed company so will tread carefully.
inbreda says:
Any bank offering good rates for fixing in a savers money is probably in trouble. If anything this offer screams “STAY AWAY!!”. I wonder how good a predictor of negative announcements it will be.
I suspect that Santanders exposure is huge. I also used to have a lot of money in Abbey but moved it after they started offering something like 125% mortgages (or similar), so I wouldn’t be surprised if they were over exposed in the UK market as well. Could well be the next ones to call a rights issue? But then the competition is so great…. A&L perhaps?
p. doff says:
Y’all probably missed it but I mentioned Abbey’s new fixed rate bond last week. I also mentioned that I was particularly miffed, having just stuck £30K in their previous 6.55% one a week or so earlier. You win some, you lose some – but just a bit worried now that even better rates are in the pipeline!!.
BTW Abbey require you to open another account with them to deposit the money into the bond (and receive the money back on maturity). I had a disagreement with the Abbey adviser as I already have a current account there jointly with the missus and couldn’t see the point in opening another. They eventually gave in and accepted it via the joint account but, you never know, there might be problems getting it out again.
jack c says:
Interesting that we now have a PM who was previously hailed as a prudent/masterful chancellor who put and end to “boom & bust” – if a debate of this nature was running on this site 18 months ago about the safety of Bank/BS deposits we would have been derided as lunatics and yet now the only real certainty we have is with NS&I and Northern Rock. I accept NS&I was really the only 100% backed deposit taker but the idea of a run on a Bank or it going under was in reality pretty remote – oh how things have changed !
Chasbmw says:
NR are offering 6%
Or Cahoot (part of Abbey) are offering 6.7% up to the end of October.
jack c says:
If you guy’s are prepared to use an offshore deposit account you will find higher rates – have a look at http://www.kaupthingsingers.co.im/Pages/1809
Barb777 says:
I wouldn’t put my money in any of the banks offering the high interest rates. I didn’t like having my dosh in Alliance Leicester when I lived in the U.K in 2007, I must admit to feeling nervous then. Gold is the way to go.
Malct says:
Just in passing
Walked past a Northern Rock shop yesterday, it was quite strange to see the windows covered in posters for SAVINGS no mention of mortgages.
Our first mortgage in 1968 was with NR. Seems odd 40 years and then ‘what?’