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MSE News - Savings tracker bonds launched for base rate gamblers
Former_MSE_Alana
Posts: 252 Forumite
This is the discussion thread for the following MSE News Story:
"Savers who want to gamble on interest rates rising can open bonds that track the Bank of England ..."
"Savers who want to gamble on interest rates rising can open bonds that track the Bank of England ..."
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Comments
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The Coventry account looks good.
http://www.coventrybuildingsociety.co.uk/savings/productfeatures.aspx?ProdCode=GTB1
I think I will be moving over money from Investec High 5, whose rate now looks quite poor.
Wouldn't touch shabby abbey with a bargepole.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
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pressuredrop wrote: »The base rate rises to 1% and the Coventry product stays the same?
It may be good for the Coventry but not for me. I want a tracker that tracks.
I admire the Coventry for getting cheap funding though.
The only reason it stays the same is because there's a minimum rate. So if the base rate should fall to 0%, the tracker wouldn't go down, it would stay at a minimum of 3.2%. If the base rate goes beyond 1% then you will be tracking.0 -
pressuredrop wrote: »I admire the Coventry for getting cheap funding though.
As the equilvalent of a 90-day notice account (you pay a 90-day interest on withdrawals penalty), it is not bad at 3.2%. The tracking facility offers some degree of insurance.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
There is nothing cheap about funding their business at 2.2% above BofE.pressuredrop wrote: »I admire the Coventry for getting cheap funding though.
The account will be a loss-leader.0 -
Not necessarily. I'm not sure about the Santander account but the Coventry one should certainly qualify to be one of the top 5 so will help lift the High 5 interest rate.I think I will be moving over money from Investec High 5, whose rate now looks quite poor.
The High 5 will never be the top paying account - the idea was always to save you having to keep moving money around.0 -
I first thought this was good - but then of course there was the catch - only tracks after BB goes above 1%. This is not a tracker then.
I have read reports that interest rates may rise etc etc but by the end of 2011 the general feel is that interest rates could be in the region of 1-2%, and no higher. Obviously everyone has their views on this.
Banks and BS's aren't silly - no-one would offer this if they thought base rates would rocket!!
I don't think these are good as base rates in the short term are not going to increase.0 -
I first thought this was good - but then of course there was the catch - only tracks after BB goes above 1%. This is not a tracker then.
I have read reports that interest rates may rise etc etc but by the end of 2011 the general feel is that interest rates could be in the region of 1-2%, and no higher. Obviously everyone has their views on this.
Banks and BS's aren't silly - no-one would offer this if they thought base rates would rocket!!
I don't think these are good as base rates in the short term are not going to increase.
It is a tracker. Just happens that the minimum rate is above the current base rate.
Mortgages are exactly the same, are they therefore not trackers because they stop at a certain point?0 -
I first thought this was good - but then of course there was the catch - only tracks after BB goes above 1%. This is not a tracker then.
Yes it is! In mortgage terms it would be called a collared tracker.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
The High 5 will never be the top paying account - the idea was always to save you having to keep moving money around.
I do understand. However, the High 5 account has now been below 3% for an extended period, whereas this account is guaranteed to pay at least 3.2% for 2 years, and will rise with the base rate.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0
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