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ICICI Rise Imminent to 6.45% ?

wombat42_2
wombat42_2 Posts: 1,312 Forumite
in Savings & investments
ICICI seem to have a policy of always being a smidgen ahead of any other UK savings account. If they didnt who would bother with saving with an Indian bank. ICICI's interest rate is currently 6.3%. Now that B&B pay 6.4% and ICESAVE pay 6.3%, I confidently predict that ICICI will pay 6.45% any day now.
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Comments

  • masonic
    masonic Posts: 28,022 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Personally, I'm more than happy to save with an Indian bank. My issues were with saving with an incompetent bank. Bumping their rates up 0.05% (even 0.15%) above the competition would not outweigh that problem for me.
  • KingKenny
    KingKenny Posts: 242 Forumite
    Part of the Furniture Combo Breaker
    masonic wrote: »
    Personally, I'm more than happy to save with an Indian bank. My issues were with saving with an incompetent bank. Bumping their rates up 0.05% (even 0.15%) above the competition would not outweigh that problem for me.

    Good Shout, i agree, i would rather be with ICICI, or ICE save than some of the shambles on the high street.
  • Rafter
    Rafter Posts: 3,850 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    They will only bump up the rate above 6.4% if they need the cash flor lending out, and more importantly if they can lend it to someone who will pay them more than 6.4% after losses for bad debts.

    Otherwise they will go out of business.

    What you are basically saying when you choose to invest at these higher rates with an Icelandic or Indian bank is that their management are more competent at lending than UK banks or that they are happy to accept a lower profit (more likely) than some of our bloated plc banks!

    R.
    Smile :), it makes people wonder what you have been up to.
  • equitydealer
    equitydealer Posts: 353 Forumite
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    Agree with Rafter, ICICI is a business not a charity. They can't sustain a loss leading product otherwise their shareholders will start shouting.

    Saving with a British bank is far safer than ICICI. If ICICI folded tomorrow you won't see people queuing outside branches because there aren't any! All savers will get is the FCSC protection. If Bradford and Bingley folded the Government would probably guarantee all savings as the impact would be much higher.
  • wombat42_2
    wombat42_2 Posts: 1,312 Forumite
    equitydealer wrote: »
    Agree with Rafter, ICICI is a business not a charity. They can't sustain a loss leading product otherwise their shareholders will start shouting.

    Saving with a British bank is far safer than ICICI. If ICICI folded tomorrow you won't see people queuing outside branches because there aren't any! All savers will get is the FCSC protection. If Bradford and Bingley folded the Government would probably guarantee all savings as the impact would be much higher.

    Well they do have a couple of UK administrative offices in the UK and they need to comply with UK company law and FSA rules.
  • gt94sss2
    gt94sss2 Posts: 6,237 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    wombat42 wrote: »
    ICICI seem to have a policy of always being a smidgen ahead of any other UK savings account. If they didnt who would bother with saving with an Indian bank. ICICI's interest rate is currently 6.3%. Now that B&B pay 6.4% and ICESAVE pay 6.3%, I confidently predict that ICICI will pay 6.45% any day now.

    The fact a bank (or its parent) is Indian, Icelandic or British makes very little difference to most people.

    There have been considerable periods in the past when IceSave has paid a higher interest rate than ICICI.

    Regards
    Sunil
  • gt94sss2
    gt94sss2 Posts: 6,237 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    equitydealer wrote: »
    Saving with a British bank is far safer than ICICI. If ICICI folded tomorrow you won't see people queuing outside branches because there aren't any! All savers will get is the FCSC protection.

    ICICI in the UK would benefit from the same protection as any other bank including the BoE guarantee if relevant and it does actually have some branches in the UK (mainly in 'Asian' areas)

    Regards
    Sunil
  • lolarentt
    lolarentt Posts: 1,020 Forumite
    gt94sss2 wrote: »
    ICICI in the UK would benefit from the same protection as any other bank including the BoE guarantee if relevant and it does actually have some branches in the UK (mainly in 'Asian' areas)

    Regards
    Sunil

    This is very true, and as regards the so called UK banks HSBC aren't UK based, and B&B mentioned earlier are tiny compared with the INGs ICICI etc etc. Although ING, who were one of the forerunners in this iternet high interest business, have fallen behind recently (they are only paying 5.25 AER) they have just circulated customers offering 6% AER on new deposits over £5K from now until 23rd March 08.
  • starlet10
    starlet10 Posts: 85 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    equitydealer wrote:
    Saving with a British bank is far safer than ICICI. If ICICI folded tomorrow you won't see people queuing outside branches because there aren't any!
    gt94sss2 wrote:
    ICICI in the UK would benefit from the same protection as any other bank including the BoE guarantee if relevant and it does actually have some branches in the UK (mainly in 'Asian' areas)

    There are 6 ICICI branches located in the UK:
    http://www.icicibank.co.uk/contactus.html
    Mortgage started July 2010 = £223,314
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  • Mr_Mumble
    Mr_Mumble Posts: 1,758 Forumite
    lolarentt wrote: »
    This is very true, and as regards the so called UK banks HSBC aren't UK based
    HSBC Group's head office is very much in London:
    http://www.hsbc.com/1/2/contact-us
    B&B mentioned earlier are tiny compared with the INGs ICICI etc etc.
    ING are in a completely different ballpark to ICICI. In fact Bradford & Bingley have more assets under management than ICICI, but then again so do Northern Rock! The Forbes 2000 list of worlds largest companies for 2007:

    10 ING Group
    438 Northern Rock
    536 ICICI
    852 Bradford & Bingley
    "The state is the great fiction by which everybody seeks to live at the expense of everybody else." -- Frederic Bastiat, 1848.
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