Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
MUST WATCH Before You Waste Money on Buying A New PC Computer System - 27th Nov 20
Gold: Insurance for Prudent Investors, Precious Metals Reduce Risk & Preserve Wealth - 27th Nov 20
How To Spot The End Of An Excess Market Trend Phase - 27th Nov 20
Snow Falling Effect Christmas Lights Outdoor Projector Amazon Review - 27th Nov 20
4 Reasons Why You Shouldn't Put off Your Roof Repairs - 27th Nov 20
Further Clues Reveal Gold’s Weakness - 26th Nov 20
Fun Things to Do this Christmas - 26th Nov 20
Industries that Require Secure Messaging Apps - 26th Nov 20
Dow Stock Market Trend Analysis - 25th Nov 20
Amazon Black Friday Dell 32 Inch S3220DGF VA Curved Screen Gaming Monitor Bargain Deal! - 25th Nov 20
Biden the Silver Bull - 25th Nov 20
Inflation Warning to the Fed: Be Careful What You Wish For - 25th Nov 20
Financial Stocks Sector ETF Shows Unique Island Setup – What Next? - 25th Nov 20
Herd Immunity or Herd Insolvency: Which Will Affect Gold More? - 25th Nov 20
Stock Market SEASONAL TREND and ELECTION CYCLE - 24th Nov 20
Amazon Black Friday - Karcher K7 FC Pressure Washer Assembly and 1st Use - Is it Any Good? - 24th Nov 20
I Dislike Shallow People And Shallow Market Pullbacks - 24th Nov 20
Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often? - 24th Nov 20
10 Reasons You Should Trade With a Regulated Broker In UK - 24th Nov 20
Stock Market Elliott Wave Analysis - 23rd Nov 20
Evolution of the Fed - 23rd Nov 20
Gold and Silver Now and Then - A Comparison - 23rd Nov 20
Nasdaq NQ Has Stalled Above a 1.382 Fibonacci Expansion Range Three Times - 23rd Nov 20
Learn How To Trade Forex Successfully - 23rd Nov 20
Market 2020 vs 2016 and 2012 - 22nd Nov 20
Gold & Silver - Adapting Dynamic Learning Shows Possible Upside Price Rally - 22nd Nov 20
Stock Market Short-term Correction - 22nd Nov 20
Stock Market SPY/SPX Island Setups Warn Of A Potential Reversal In This Uptrend - 21st Nov 20
Why Budgies Make Great Pets for Kids - 21st Nov 20
How To Find The Best Dry Dog Food For Your Furry Best Friend?  - 21st Nov 20
The Key to a Successful LGBT Relationship is Matching by Preferences - 21st Nov 20
Stock Market Dow Long-term Trend Analysis - 20th Nov 20
Margin: How Stock Market Investors Are "Reaching for the Stars" - 20th Nov 20
World’s Largest Free-Trade Pact Inspiration for Global Economic Recovery - 20th Nov 20
Dating Sites Break all the Stereotypes About Distance - 20th Nov 20
THE STOCK MARKET BIG PICTURE - Video - 19th Nov 20
Reasons why Bitcoin is Treading at it's Highest Level Since 2017 and a Warning - 19th Nov 20
Media Celebrates after Trump’s Pro-Gold Fed Nominee Gets Blocked - 19th Nov 20
DJIA Short-term Stock Market Technical Trend Analysis - 19th Nov 20
Demoncracy Ushers in the Flu World Order How to Survive and Profit From What Is Coming - 19th Nov 20
US Bond Market: "When Investors Should Worry" - 18th Nov 20
Gold Remains the Best Pandemic Insurance - 18th Nov 20
GPU Fan Not Spinning FIX - How to Easily Extend the Life of Your Gaming PC System - 18th Nov 20
Dow Jones E-Mini Futures Tag 30k Twice – Setting Up Stock Market Double Top - 18th Nov 20
Edge Computing Is Leading the Next Great Tech Revolution - 18th Nov 20
This Chart Signals When Gold Stocks Will Explode - 17th Nov 20
Gold Price Momentous ally From 2000 Compared To SPY Stock Market and Nasdaq - 17th Nov 20
Creating Marketing Campaigns Using the Freedom of Information Act - 17th Nov 20
ILLEGITIMATE PRESIDENT - 17th Nov 20
Stock Market Uptrend in Process - 17th Nov 20
How My Friend Made $128,000 Investing in Stocks Without Knowing It - 16th Nov 20
Free-spending Biden and/or continued Fed stimulus will hike Gold prices - 16th Nov 20
Top Cheap Budgie Toys - Every Budgie Owner Should Have These Safe Bird Toys! - 16th Nov 20
Line Up For Your Jab to get your Covaids Freedom Pass and a 5% Work From Home Tax - 16th Nov 20
You May Have Overlooked These “Sleeper” Precious Metals - 16th Nov 20
Demystifying interesting facts about online Casinos - 16th Nov 20
What's Ahead for the Gold Market? - 15th Nov 20
Gold’s Momentous Rally From 2000 Compared To Stock Market SPY & QQQ - 15th Nov 20
Overclockers UK Quality of Custom Gaming System Build - OEM Windows Sticker? - 15th Nov 20
UK GCSE Exams 2021 CANCELLED! Grades Based on Mock Exams and Teacher Assessments - 15th Nov 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Abbey Fixed Rate Bond Maturity Experience

Personal_Finance / Savings Accounts Aug 13, 2008 - 12:52 AM GMT

By: Shahla_Walayat

Personal_Finance The following is intended to save investors time and potential loss of interest in dealing with maturing Abbey fixed rate bonds.


The Abbey Maturity Form

My fixed rate Abbey bond was due for maturity on the 1st of August 2008, and I received paper work before hand that gave me a form with the options of either re-investing with the abbey or for the funds to be transferred on maturity into another abbey account.

However the form did not contain a section that would allow me to transfer the funds out of the Abbey to another institution on maturity. In this regard there was a brief section at the beginning of the form that stated that I would need to visit an Abbey branch before maturity to make such arrangements.

Abbey Branch

On visiting the Abbey branch I was informed that no such procedures exist to handle instructions before maturity and that if I closed the account before maturity I would lose interest and that they could not take instructions for post maturity closures before the bond has matured.

Written instructions to the Abbey

As is the normal practice, I wrote to the Abbey requesting that the funds be transferred to my current account or a cheque posted to me on maturity, having waited nearly 2 weeks after maturity and nothing having arrived either by post or bank transfer I decided to pay the branch a visit as clearly the Abbey had ignored my written instructions.

Abbey Account Closure and Loss of Interest

I visited the local branch on the 12th of August and I instructed the staff to close the account and had a cheque drawn on the day. However, I noticed that the Abbey had not credited the account with interest for the 11 days since maturity, which I queried with the staff and was told that interest is only payable for whole months, therefore to get any of the interest paid at a low interest rate I would have had to hold off on account closure until he start of the following month.

Abbey Fixed Rate Bond Conclusions

  • Savers not intending on reinvesting should visit the branch on the day of maturity or day after to close the account and have a cheque drawn.
  • Sending written instructions that do not entail reinvestment with the Abbey is a waste of time.

My usual experience with maturing bonds with other financial institutions is that they will -

a. Acknowledge my written instructions

b. Credit the maturity value with any accrued interest for extra days beyond maturity.

By Shahla Walayat
http://www.moneyforums.co.uk

Copyright © http://www.moneyforums.co.uk 2008 - All Rights Reserved

Moneyforums.co.uk is a FREE site which provides UK Money Saving Guides, Tools and Forums including - Credit Score Calculator and the Savings Calculator . Mortgage and Tax Calculators. Money Saving Guides such as Credit Card Stoozing , Savings Tree , Money Saving Guide. Personal Finance Discussion Forums open to ALL, supported by experienced moderators, to discuss any personal finance topics from The best Savings & Deposit Accounts , Regular Savers and Cash ISA's and more.

This article maybe reproduced if it is reprinted in its entirety with links to http://www.moneyforums.co.uk

Disclaimer - Moneyforums.co.uk does not guarantee the accuracy of the information provided, and does not accept any liability for its accuracy, which is for general information purposes only as a starting point for your own research.

Shahla Walayat Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

nmn
02 Jan 09, 13:17
Abbey Having Problems In Repaying Maturing Bonds Jan 09

ABBEY HAVING PROBLEMS IN REPAYING MATURING BONDS

In Dec07/Jan 08 Abbey issued bonds paying 7.1% apr.

They had huge amount of demand for this bond and at that time they could not cope with the demand and the service provided then was awful

Now ( on 1st Jan 09 ) these bonds have matured and it seems that ABBEY are having lots of problems in paying back the customers. The reason they are quoting in "IT Glitch !"

Is the real reason that they do not have sufficient funds to pay back !

Is anyone else experiencing this problem and what are they doing about it


Nadeem_Walayat
02 Jan 09, 13:54
Financial Insitutions in Distress

All financial institutions are short of cash since August 2007, which is why you could pick up 7.1% in Jan 08, and why despite Octobers rate cut you could still get 7% for a shortwhile afterwards !

Expect all financial instutions to try their hardest to hang onto your valuable cash. However what the banks should be doing is PAYING HIGHER interest rates. Forget the base rate, the real economic interest rate is still north of 4%.(though falling fast).

Back to Abbey, it is not in Abbeys interests to stop you from accessing your maturing funds, yes they can delay for a few days, but any longer and they would risk loss of confidence so you should not unduly worry as Abbey have no choice but to repay the maturing bond, as the alternative .......


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules