Fix Your Savings Rate NOW! Article Discussion

sbutton

Hi,

I'm going to start putting away 10% of everything I earn and I'm not sure whether to go for a fixed rate deal (if they still exist now?) or start putting money into an ISA.

As a higher rate tax payer, I expect an ISA is going to be helpful to avoid paying tax on my savings.

There's so many conflicting messages about where to go, it's getting really frustrating!

Help!

Steve

apt

Higher rate taxpayers without expensive debt should always make full use of cash isa allowances - £3,600 each tax year. If you've not paid in this year Bradford and Bingley 1 Year Fixed Rate eISA (4) at 6.25% (new money only - no transfers) looks very attractive. If you don't want the hassle of transferring your money each year Kent Reliance Direct ISA - currently 5.76% but will drop soon - has been the most consistent product.

JimmyTheWig

sbutton wrote: »

I'm going to start putting away 10% of everything I earn and I'm not sure whether to go for a fixed rate deal (if they still exist now?) or start putting money into an ISA.

As a higher rate tax payer...

I would be incredibly surprised if a cash ISA wasn't the best place for you to start.
Read http://www.moneysavingexpert.com/savings/best-cash-isa to find one that is best for you.
Once you fill your yearly quota (currently £3600) then come back and ask what to do from there. Years run April - April. You are unlikely to fill this this year (unless you earn £86k or have other money to add to it).

JayTulip

Clydesdale and Yorkshire Banks have dropped their rates on the fixed rate products from Monday. Now, the best you get is 5.5% gross.

Birmingham Midshires, if you have the applications, you need to return them by the 30th to be eligible for the 6.6% gross rate on a 12 month fixed deposit and other products with high yields.

Saga and AA still did not send me the applications, eventhough I applied about 10 days ago. Anyone requested their applications and did not receive them?

Tesco, NatWest, Alliance and Leicester and BM easy access accounts are still holding rates at 6% gross or slightly above.

rarrarrar

jackthelad wrote: »

Not if you speak to a human;)

Unfortunately the HSBC £10k limit applies whether you use internet, phone or branch methods.
UNLESS you use CHAPS and pay a fee.

One reason I also have a First Direct account which has no limit !

Pedro_retired

Following Martin's mail about fixing a saving rate I applied online to Halifax for a 1 Year fixed rate of 6.50%.
I went into my local Halifax the next day to prove identity etc. and fund it and this is where the story starts.
I initially asked to fund it from my daughter's account for which I am trustee. The answer was no.
I had a Halifax websaver with a zero balance so asked if they would transfer the £5,000 I required from the trustee account to my websaver.
The initial answer was no as the websaver was internet only.
I was not happy as I could not access the trustee account from the internet so how could I do it. They succomed and did the transfer.
I went home and checked online and the £5,000 was in my websaver. I checked the next day to see if it had been put in my 1 Year fixed rate account just to find it had dissappeared from any of my accounts.
A few days later I phoned Halifax to see what was happening.
I was told it had been put in a holding account and not to worry as they would set up my fixed term account.
I waited and waited a bit more.
On the 12th November surprise surprise, it was back in my websaver but no fixed term although I had been given an account number for it.
On the 18th I again phoned Halifax and was told that my i Year account could not be funded in time before the rate had changed because it takes 48 hrs to leave a trustee account (I was not told that at the branch.)
I was told that they could do nothing about it and that I would have to reapply at the new rate of 4.75%
I started throwing toys about but they said it was physically impossible to backdate the rate.
I threw bigger toys about and after 49 minutes on the phone was put through to customer services.
They said that they could backdate the interest and set my 1 Year account up from the 7th at 6.50% even though it was now the 18th.
THE MORAL OF THE STORY. DON'T ROLE OVER AND ACT DEAD. FIGHT FOR WHAT IS RIGHTFULLY YOURS.
Sorry if this was a bit long winded.

Pedro retired

JimmyTheWig

Pedro_retired wrote: »

DON'T ROLE OVER AND ACT DEAD.

Good for you.

it was physically impossible to backdate the rate.

There is always a way - even if it meant crediting you with a goodwill gesture equal to the difference in interest you would have earned with the two rates...

Newly_retired

Can anyone update us with the latest best fixed rates since the bank rate cut today, please?

Baldur

Newly_retired wrote: »

Can anyone update us with the latest best fixed rates since the bank rate cut today, please?

The rate cut hasn't fed into the system yet (only one change today at the moment on eMoneyfacts).

opinions4u

Newly_retired wrote: »

Can anyone update us with the latest best fixed rates since the bank rate cut today, please?

5.75% for 9 months at Halifax seems decent.

http://www.halifax.co.uk/savings/fixedwebsaver.asp

Just seen a 5.51% very flexible account from Manchester Building Society posted elsewhere too!