Force up interest rates

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  • Thrugelmir
    Thrugelmir Posts: 89,546
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    jimjames wrote: »
    That may be true but it seems a fairly good bet that with the economy in the current state and lending under pressure that rates are not likely to rise quickly or soon.

    The BOE is intentionally holding down interest rates to promote growth.
  • innovate
    innovate Posts: 16,217
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    rb10 wrote: »
    Other than ISA rates increasing very slightly during next year's ISA season......<snip>

    I am beginning to think I wouldn't be surprised if we didn't see the usual ISA rate competition next April.
  • I am being tempted by opening an account overseas to get a better rate. I guess that there are complications such as tax deductions, transfer fees and exchange rates but the rates are so much better.
    For instance, ANZ bank in Australia is currently paying the rate of 4.35% per year for just 3 months: http://www.anz.com.au/aus/RateFee/InterestRates/Rates.asp

    I don't think that you can get 4.35% for a 5 year deposit here.
  • jimjames
    jimjames Posts: 17,532
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    I am being tempted by opening an account overseas to get a better rate. I guess that there are complications such as tax deductions, transfer fees and exchange rates but the rates are so much better.
    For instance, ANZ bank in Australia is currently paying the rate of 4.35% per year for just 3 months: http://www.anz.com.au/aus/RateFee/InterestRates/Rates.asp

    I don't think that you can get 4.35% for a 5 year deposit here.

    If you are prepared to gamble on exchange rates why wouldn't you just take out a S&S ISA here where you'll get nearly 5% income anyway? Genuinely puzzled why it is seen as an option to go overseas when better rates are available here for the same risk.

    Obviously if you need/spend AUS dollars it isn't the same risk but if you need the money in sterling then there is a huge risk you are taking.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Blackdog
    Blackdog Posts: 459 Forumite
    innovate wrote: »
    I am beginning to think I wouldn't be surprised if we didn't see the usual ISA rate competition next April.
    I hope you are wrong but I have a funny feeling you might be right!
  • Thrugelmir
    Thrugelmir Posts: 89,546
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    For instance, ANZ bank in Australia is currently paying the rate of 4.35% per year for just 3 months:

    Are they offering the same rates in the UK?

    How much would you lose in currency exchange fees.
  • I haven't researched it yet but the rate is tempting.
  • antrobus
    antrobus Posts: 17,386 Forumite
    ..
    For instance, ANZ bank in Australia is currently paying the rate of 4.35% per year for just 3 months:...

    That's nothing! You can get 22.50% on the Prominvestbank 1 Year Saving Deposit. (That's Ukrainian in case you're interested.)

    Of course you'll lose a bit in fees and whatnot in executing the transfer. And then there's the exchange rate risk......
  • innovate
    innovate Posts: 16,217
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    I don't think that you can get 4.35% for a 5 year deposit here.

    You can get 3.9% for 5 years, complete with £85K FSCS protection. Basically risk free, and no faffing about with double taxation challenges or exchange rates.

    Punjab National International.
  • antrobus wrote: »
    That's nothing! You can get 22.50% on the Prominvestbank 1 Year Saving Deposit. (That's Ukrainian in case you're interested.)

    22.5% ?
    Noted !
    :)
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