Interest rate cuts

XDA

I have been looking at the "Alliance & Leicester eSaver Issue 2" account and the "Halifax Guaranteed Saver Reward" account.

Alliance and Leicester say that the esaver account will stay 0.50% above the BOE interest rate until 2010. Its currently paying 6.30%.

The Halifax account is fixed at 6.00% for 12 months.

Which is the better account? I would say the Halifax as its staying at 6.00%?

Cheers.

Baldur

Depends what you think is likely to happen to rates over the next year - personally, I'd go for the slightly lower fixed rate but it's your choice.

Swipe

Unless you need the money, take the Halifax at 6% fixed. The esaver will drop to 4% at the end of the month

XDA

Swipe wrote: »

Unless you need the money, take the Halifax at 6% fixed. The esaver will drop to 4% at the end of the month

I had a feeling it would drop sometime soon. Halifax account it is then.Cheers for the input both, much appreciated.

oldfella

YBS has been doing the same thing - they had an ebond with a variable term between 12-14 months with an AER of 6.5. Its only 6.5 for the 12 month term.