Bad maturity experience
I fell in to the trap of pre-selecting a maturity option several weeks before the maturity...Read more
I fell in to the trap of pre-selecting a maturity option several weeks before the maturity date.
I was then caught out by a rate rise in the selected bond 3 days before the maturity date.
Guess what, I now have the matured bond reinvested in the older lower rate, and the bank say that is fine as I indicated that I wanted to invest in a 2 Year fixed rate, so I have the rate at the date I indicated my re-investement options. But I should not expect a rate rise to be applied to my new fixed rate account that was not opened until 3 days after they increased there rate.
I should have ignored their maturity options and opened a 2 year bond a few days before maturity at the old rate, then after maturity check the current tare and if it is better, open a second bond at the higher rate and manually transfer the matured funds into the higher rate account.
So it is all my fault!!!