Alliance Leicester eSaver 2

bandana999

Yes ... but they won't do it like that.

What they will do is invent a new account, something like "eSaver3" :rotfl:, which will pay 4.2%, and they will reduce the eSaver2 rate to 3.15% - but they won't tell you - and then when you do find out and try to open the eSaver3 they will want to see a copy of your NORAD security clearance signed by the President.

Baldur

manhar wrote: »

Does this mean that once they've roped you in with a 6.3% offer, they can then take the rate down to 3.5% (ie 0.5% above BoE) when they feel like it?

They certainly *could* within the provisions of the account, that's why it's so important to read the whole terms, especially of a variable rate account, rather than being dazzled by the headline rate being offered.

DawnW

Baldur wrote: »

They certainly *could* within the provisions of the account, that's why it's so important to read the whole terms, especially of a variable rate account, rather than being dazzled by the headline rate being offered.

On the other hand, so 'could' every other savings account provider! Unless it is a fixed account, but that means tying the money up for a period of time. I was fine with this - until the Icesave business. That put me off rather.

Baldur

DawnW wrote: »

On the other hand, so 'could' every other savings account provider! Unless it is a fixed account, but that means tying the money up for a period of time. I was fine with this - until the Icesave business. That put me off rather.

The majority of those with fixed rate accounts in Icesave are likely to be far better off than those who had variable ones, as they can choose to keep their FR accounts running until the original maturity date and receive the originally contracted rate of interest from the FSCS.

manhar

Baldur wrote: »

The majority of those with fixed rate accounts in Icesave are likely to be far better off than those who had variable ones, as they can choose to keep their FR accounts running until the original maturity date and receive the originally contracted rate of interest from the FSCS.

So is a fixed rate of 5.5% a wiser choice than a 6.3% variable, considering that no access is required to the money for a year?

Baldur

manhar wrote: »

So is a fixed rate of 5.5% a wiser choice than a 6.3% variable, considering that no access is required to the money for a year?

That's something that you need to decide for yourself, only you know your circumstances & whether you may need earlier access to your funds or not.

Assuming the variable rate stayed the same for the full year you would gain £80 extra interest on a £10,000 deposit (£630 as opposed to £550) - the likelihood of the variable rate remaining static is, in my opinion, pretty slim, given the recent BoE reductions.

apt

Yes because the variable rates don't yet reflect the 1.5% fall in base rates and base rate is likely to fall even further. If you've got the money available immediately you can probably still get a fix of 6.0%.

manhar

apt wrote: »

Yes because the variable rates don't yet reflect the 1.5% fall in base rates and base rate is likely to fall even further. If you've got the money available immediately you can probably still get a fix of 6.0%.

So where is the best rate where interest is paid monthly?

apt

Excluding Cyprus, Turkey, India etc. perhaps Yorkshire Bank/Clydesdale - but you need to apply today - or Kent Reliance at c. 5.85% equalling c. 6% AER.

manhar

apt wrote: »

Excluding Cyprus, Turkey, India etc. perhaps Yorkshire Bank/Clydesdale - but you need to apply today - or Kent Reliance at c. 5.85% equalling c. 6% AER.

Are these all covered by FSCS compenastion?