ISA rate cut today - how to move

24

Comments

  • Keep_pedalling
    Keep_pedalling Posts: 16,591 Forumite
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    Alexland wrote: »
    The savings market is all about getting punters through the door with best buy rates then taking the customer through a journey to lower rates (while launching a new product with better rates to attract new punters) hoping the existing punters won't notice or care enough to leave.

    Ideally the customer will continue to perceive the account to have a special quality (using bespoke terminology such as e-access) as they seek to reaffirm their original reason for opening it or they linger onto happy memories of the earlier interest payments.

    So don't hold it against the providers (it's how you are getting access to unsustainable rates) just keep playing your part as the exception in the game moving to whatever will give the best return with the same or a new provider.

    Don't get confused - it's not personal, loyalty doesn't pay (even when it does this is usually in support of cross selling) and it should be all about the money.

    Alex

    Quite how they get so money punters to keep adding to cash ISA with such exreamlynlow rates is beyond me, cash ISAs have been pointless for so long they should be dead by now.
  • owitemisermusa
    owitemisermusa Posts: 954 Forumite
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    This thread has been very informative, thanks to all.
    Can anyone suggest how to calculate the loss of interest when one uses the fixed rate ISA?
    Tempted by the 1.51% fixed rate with 60 day loss of interest on amount withdrawn.
    Thanks.
    Tough times never last longer than tough people.
  • Mr_K
    Mr_K Posts: 1,171 Forumite
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    owitemisermusa wrote: »
    This thread has been very informative, thanks to all.
    Can anyone suggest how to calculate the loss of interest when one uses the fixed rate ISA?
    Tempted by the 1.51% fixed rate with 60 day loss of interest on amount withdrawn.
    Thanks.

    Roughly:-

    your amount multiplied by 0.0151 divided by 365 then multiply by 60 (i think !).

    Personally i wouldn't touch fixed rates at the moment with interest rates on the way up. Especially with one that is less than inflation, a guaranteed loss.
  • Mr_K
    Mr_K Posts: 1,171 Forumite
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    Mr_K wrote: »
    Have you checked out their Defined Access e-ISA paying 1.11% (instant access with a limit of 3 withdrawals a year)?
    https://uk.virginmoney.com/savings/find/defined_access_e_isa_issue_16/overview/

    Might be easier than moving as the transfer would be instant.

    Well the Defined Access E-ISA Isa 16, didn't last long, 6 days before its been withdrawn to new applicants !
  • RG2015
    RG2015 Posts: 5,901 Forumite
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    edited 18 October 2017 at 4:08PM
    For those with a Virgin Money account there are some great deals not available to the general public.

    For example, 1.81% on a 2 year fixed ISA and 2.50% on a 5 year fixed ISA.

    Just scroll down to "view savings range" towards the bottom of the main page. I don't imagine they will be there for long.
  • owitemisermusa
    owitemisermusa Posts: 954 Forumite
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    Mr_K wrote: »
    Well the Defined Access E-ISA Isa 16, didn't last long, 6 days before its been withdrawn to new applicants !

    Whoa!!!! Gone already?

    Might just fix and take the hit as it comes...
    Tough times never last longer than tough people.
  • Kernel_Sanders
    Kernel_Sanders Posts: 3,617 Forumite
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    RG2015 wrote: »
    For those with a Virgin Money account there are some great deals not available to the general public.

    For example 2.50% on a 5 year fixed ISA.
    I only have a regular saver so didn't know that. The one on offer to me is 2.4%, but with 180 day withdrawal penalty. Is it likewise with the higher one?
  • Novice_investor101
    Novice_investor101 Posts: 873 Forumite
    First Anniversary First Post Cashback Cashier Energy Saving Champion
    Glad I did my sign up to issue 16 the day I got the email! I was gonna leave it til today...
  • grahamgoo
    grahamgoo Posts: 472 Forumite
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    I've had the same e-mail about my e-ISA rate dropping to 0.51%

    I've been seriously considering the 2 year fix at 1.81% but also think maybe if IRs are on the up, I might not lose out too much overall by opting for the 1 year at 1.51% and may even gain a little over the 2 years.
  • RG2015
    RG2015 Posts: 5,901 Forumite
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    Kernel_Sanders wrote: »
    I only have a regular saver so didn't know that. The one on offer to me is 2.4%, but with 180 day withdrawal penalty. Is it likewise with the higher one?
    I would have thought that a regular saver is equally as valid as any other.

    The "View savings range" drop down menu is below your account summary on the front page where is says "Open a savings account"

    I have just checked and the 2.5% 5 year ISA is still there but the early withdrawal penalty is also 180 days interest on the amount taken out.
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