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Derbyshire BS dramatically cuts the rate on it's regular saver!
Kazza242
Posts: 2,203 Forumite
The Derbyshire Building Society has reduced the interest rate it offers on it's regular savings account from 5.85% to 5.40% as of today. This is a rate cut of 0.45%, which I think is very harsh considering BOE base rate has only just been reduced by 0.25%.
I'm disappointed with the Derbyshire on this, as when BOE base rate was on the rise, they usually only increased their rate by 0.20% and not the full 0.25%.
The Moneyfacts website now lists the reduced rate.
I'm disappointed with the Derbyshire on this, as when BOE base rate was on the rise, they usually only increased their rate by 0.20% and not the full 0.25%.
The Moneyfacts website now lists the reduced rate.
Please call me 'Kazza'.
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Comments
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Ouch.
I've been expecting it though. A lot of MSE-ers have been pouring money into these accounts heavily, and there's only a certain amount of deposits the Derbyshire can accept at such a high interest rate. Unlike a lot of other regular savings accounts which sweep your savings out to a lower-rate account annually, this one allows you to keep the money in at the high rate. By now they must be paying interest on an awful lot of accumulated deposits.
5.40% - hmmm, that's quite a cut, but I think I will be sticking with it. It's still higher than anything else on offer, after all, and directly comparable because it is instant access - provided you don't access it a lot.0 -
Come on guys (and girls) retain some notion of reality; this is still 0.65% *above* the base rate!!!
cloud_dogPersonal Responsibility - Sad but True
Sometimes.... I am like a dog with a bone0 -
Don't you mean 0.9% above base rate or did I only dream of a cut last week ?
Failing that, it's my mental arithmetic that's duff.0 -
cloud_dog wrote:Come on guys (and girls) retain some notion of reality; this is still 0.65% *above* the base rate!!!
cloud_dog
True, but my view on this hasn't changed; 0.45% is a massive cut when base rate has only gone down by 0.25%. I wonder if the Derbyshire have cut their mortgage rate by 0.25% or more? :rolleyes: If there are more BOE base rate cuts to follow this year, then I can see this savings account becoming uncompetitive.
I will stick with it for now, but with falling interest rates premium bonds and some of the other NS&I products are looking more attractive.Please call me 'Kazza'.0 -
Yes. There has been a lot of discussion about whether the "average" rate paid by Premium Bonds is of any relevance, but even if you assume you'll never win a prize over £1,000 Premium Bonds pay a rate worth the same as 5.09% gross to a higher rate taxpayer.0
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0.45% is a BIG cut ! 0.25% I was expecting but this is near double that !
No wonder back in July they made an offer that customers can open TWO accounts!
Still 5.4% IS a good rate of return. Heres hopign they don't cut again ... well not unless there IS an BOE cut.0 -
I was thinking about taking out a Derbyshire BS regular saver recently but applied for a Principality 6.75% fixed for a year regular saver. I think it was the right decision for this year now rates have gone down but not so sure in the long term
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Derbyshire cut most of their other accounts by 0.5%.
How fair is that :mad: ?
So this cut wasn't targeted at the Regular Saver in particular.0 -
I use the regular savers to build up a pot for ISAs, then I haven't got to panic at the begining of April wondering where the next £7k is going to come from. Derbyshire is my sponsor for 2006/7. I'm going to Newbury (5.6%) and Monmouth (5.55%) tomorrow but those figs. are prior to any cuts resulting from last week.0
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i am paying in £20 a month which i have been for 4 or 5 years
my question is can i pay in £1000 a month for 6 months and then go back to £20 after that ?0
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