Where are the high interest savings accounts?

Chris2685

It seems like there are no high interest accounts around... I would have thought we would have seen some with nice juicy rates at 8% or more by now with all this credit crunching going on...

Do you think it is likely we will see some high interest accounts anytime soon?

Steve_xx

Rates are actually higher now than they have been for several years.

Best rates are those with a tie-in period, ie bonds of 12 months or more. ICICI Bank have a 12 month bond paying 7.2%

Who really knows whether accounts will go higher? Logically, they ought to as the banks are looking for deposits. However, given the debacle in the housing market I feel it likely that mortgage rates will either rise a little or stabilise. I think that due to the losses that the banks are seeing now that it might be likely that depositors rates will fall slightly and mortgage rates may go higher so that the margin between the two is greater, thus allowing the banks to recover some of their losses. But it's a volatile situation at the moment, as we all know.

Chris2685

Thanks that was the highest I could find too. The problem I see with this is that you have to lock the money away for 12 months, during which time an even higher savings account could come along...

Steve_xx

With ICICI Bank if you break the bond then you would stillbe able to get 6.75% for the period you had it invested.

Yes of course a higher rate could come along during the tie-in period. But then again, rates could go lower and you would then be pleased that you had the bond!

opinions4u

Give it a week and see what's out there then.

More choice and higher rates.

Stavros_3

Thats true, I hung about for a few weeks then in Jan the A/L let rip for 1 week only the 7% bond which I managed to get. You have to keep watching and waiting. IMHO this is the best website to grab those rates

dougz_2

Steve_xx wrote: »

With ICICI Bank if you break the bond then you would stillbe able to get 6.75% for the period you had it invested

Not quite. They hide it away, but actually you would only get 5%. All the 6.75% gets you is the option to take a further penalty.

Steve_xx

dougz wrote: »

Not quite. They hide it away, but actually you would only get 5%. All the 6.75% gets you is the option to take a further penalty.

Would you explain further?

dougz_2

Steve_xx wrote: »

Would you explain further?

See the right most column here Easy access Penal Rate http://www.icicibank.co.uk/hisave_fr_interest_rates.html

Makes it a poor deal for early access compared with others i.e Kaupthing, and I do not like the way they are not up front about this penalty.

Steve_xx

dougz wrote: »

See the right most column here Easy access Penal Rate http://www.icicibank.co.uk/hisave_fr_interest_rates.html

Makes it a poor deal for early access compared with others i.e Kaupthing, and I do not like the way they are not up front about this penalty.

Well spotted and as you say, they are not being upfront about this.

Chris2685

Well I decided to apply for an Alliance & Leicester esaver 2. Pays a not too bad interest rate, and the money is easily accessible if we need it (although I am aware that it doesn't pay interest for that month if you withdraw). I can link it up with my current account too, to make it easy to pay money in.