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MSE News: Lifeline for stricken savers as Atom unveils one-year account at 2%
Legacy_user
Posts: 0 Newbie
Savers have been given a much-needed boost following today's launch of a one-year account offering a 2% rate of return...
Read the full story:
'Lifeline for stricken savers as Atom unveils one-year account at 2%'
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'Lifeline for stricken savers as Atom unveils one-year account at 2%'
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
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Alternatively get 3% with instant access ....Remember the saying: if it looks too good to be true it almost certainly is.0
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Previously I found Atom confusing with having to design my own bank name and design. But this account hits the spot.
You get a week to deposit funds from £50 - 100,000 and when that "deposit window" closes no more funds can be added. But any number of accounts can be opened. That's what the blurb says.
No cooling off period but there is FSCS protection.0 -
I am a dinosaur and it took me just minutes to open an account and you can choose facial or voice recognition rather than yet another password. I took money out of 0.05% Halifax Isa so quite an increase in interest!Solar Suntellite 250 x16 4kW Afore 3600TL dual 2KW E 2KW W no shade, DN15 March 14
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"Lifeline"? "Stricken savers"? I'd love to know how anyone gets to the point where 0.35% extra on short-term cash is the difference between life or death. I don't see why MSE has to indulge in these Daily Mail style headlines.0
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Even after you have maxed out all the current account offering a higher rate than this, you still have the option of ratesetter and the like for additional funds so do your research before locking your money away for a year.0
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Even after you have maxed out all the current account offering a higher rate than this, you still have the option of ratesetter and the like for additional funds so do your research before locking your money away for a year.
The problem with Ratesetter as well as Zopa is risk and the possibility of losing one's money. In fact some people would refer to it as probability. For example, This Is Money points to a bleak future as bad debts rise and their rainy day fund comes under pressure.
http://www.thisismoney.co.uk/money/diyinvesting/article-3669789/Is-RateSetter-s-provision-fund-run-bad-debts-rise-s-important-know-risks-peer-peer-lending.html
The attraction of a fixed rate bank account with FSCA protection is security and a guaranteed return. In short we know what we're going to get back and we know our money is safe.0 -
There are also several articles on the same subject in the FT and things have moved on since that article - not in a way that has reassurred some long-term lenders .The problem with Ratesetter as well as Zopa is risk and the possibility of losing one's money. In fact some people would refer to it as probability. For example, This Is Money points to a bleak future as bad debts rise and their rainy day fund comes under pressure.
http://www.thisismoney.co.uk/money/diyinvesting/article-3669789/Is-RateSetter-s-provision-fund-run-bad-debts-rise-s-important-know-risks-peer-peer-lending.html
The attraction of a fixed rate bank account with FSCA protection is security and a guaranteed return. In short we know what we're going to get back and we know our money is safe.
With the coverage of the provision fund falling Ratesetter first changed the way the fund is calculated and have now changed the terms for lenders that will apply from 1 March. See http://p2pindependentforum.com/thread/7831/new-lender-terms-1st-march
So instead of the 'resolution event' referred to in that article coming into play should the provision fund become insufficient (which would effectively lead to the wind-up of the company), under the new terms funds would be taken from interest due to lenders, and possibly their capital, to boost the provision fund so that the company could be preserved and continue trading.
It's a significant change and some will be asking if the provision fund is as healthy as Ratesetter insist, contrary to opinions expressed in the FT and others, then why have have they chosen to change the terms in that way now - obliging them to offer free exits to those who object to the new terms. Only lenders can decide the level of risk they're prepared to take so important for anyone think of lending through them to re-assess the position in the light of the new terms.0 -
The attraction of a fixed rate bank account with FSCA protection is security and a guaranteed return. In short we know what we're going to get back and we know our money is safe.
Indeed. For this part of my portfolio, return of investment is more important than return on investment0 -
Do I really want to pay 20% on interest, and god forbid, 40%?
Even if you only get 2.4% dividend, paying 7.5% tax instead of 20% is a no brainer, surely?0
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