Savings Rates & Moving Money

dosh37

I’m getting pretty sick of running around trying to get a decent interest rate for my savings.
The government are helping out banks and people who borrowed more money than they could afford but are doing nothing to help people to rely on savings income.:mad:

Here’s my latest tale of woe…

I received an email yesterday (29th December) from the Yorkshire Building Society announcing “eBond, 4.50% gross p.a./AER* - to be Withdrawn Monday 29 December”.
This had a guaranteed interest rate until June 2009. The email said there was a few days grace to allow further transfers into the account. Payments into the account can only be made using debit card or bank transfers.

I had already opened a YBS eBond account just before Christmas. The Coventry BS had just announced yet another rate cut on their 50plus eSave account, so I had planned to move £50,000 from there into the YBS account.

The Coventry only allow withdrawals into a nominated bank account, so that meant I had to transfer the money into my bank current account first. That took about 4 days. When I attempted to transfer the money into the YBS account I discovered there is a £10,000 limit on internet BACS transfers. There is also an upper limit on debit card payments.

I managed to transfer the first instalment of £10,000 just before the Christmas break. Because of the bank holiday, it took several days before I could set up the transfer for the second instalment. This is when the eBond closure email arrived. I phoned the bank to ask if there was some way to arrange a transfer for the full amount. ‘No problem’ I was told. ‘Just go in person to your local branch with proof of ID and they will arrange a fund transfer’. So I cancelled the second BACS transfer instalment and set off to my local bank.

After a frustrating half an hour trying to find somewhere to park, walking almost a mile to reach the bank, and waiting 15 minutes in the queue I was told my only option was to use CHAPS for which there would be a £30 fee! There was no mention of this over the phone. I was not prepared to pay the fee so I decided to make as many BACS instalments as I could before the eBond was fully closed.

When I got back home and attempted to reinstate the second BACS transfer, the system would not allow it - a message that said it would exceed the maximum daily limit despite having cancelled the earlier transaction. I had to wait until today before I could set up the second transfer. I have no idea if I will be able to transfer the full amount before further deposits are rejected.

The crazy thing about all of this is that despite all the running around, after tax, my savings will not even be keeping up with inflation. Maybe I should do what Gordon Brown seems to want – forget saving, go out and buy a new BMW. Then I can join the rest of the people at the benefits office.:rotfl:

natman

Hi.

I do sympathise with you, it sounds as though you had put real effort into trying to secure a decent return on your savings.

To be honest the last 6 weeks or so has seem a real downslide in savings account return - I had a few really good interest accounts -
ICICI - 6.16% and fix term bonds -7.2%
Kaupthing - 6.5% and fix term bonds - 7.15%
Bradford and Bing - 6.2%
Birmingham Midshires - 6.15%
Yorkshire Build society - 6%

Now though my saving rates in genral have an average of around 4% as they have all droped.
However what I may disagree with you about it the inflation rate -
ok today inflation is meant to be around 4.5%

But..............................................all reports suggest that we may even go into deflation, Inflation has already come down this month.
With the oil price reduction, high street shop reductions, food reductions - it already looks as though inflation will dive down!!! As soon as gas and elec bils start coming down then many of us will feel the redution - i beleive as reports suggest that inflation will go to 1 - 1.5% soon.

This will make the 3.5% - 4% paying interest accounts - not to bad. in the medium term..................

What i do agree with you on is - why us savers have to fight for decent returns and seem to get penalised at the minute to help out the folk who took out credit, and the banks that allowed it.

I am assume that i was like you over the last many years, who did not spend silly, save what they could and worked ther best................ it does not seem fair that i have been overlooked personally by the governments and banks............. although I do agree that the government and banks need to sort this out in the bigger picture of things!!!!

dosh37

The official inflation rate is currently around 4.1% (if you believe government figures).

If I invest £50,000 at 4.5% gross (around 3.6% after tax) then after a year I get £1800. If inflation remains at 4%, that means my money will be worth £200 less in a years time than is is now.

So, I may as well take the George Best approach to money - spend most of it on wine and women and fritter the rest away.

No need to worry about the future - the Labour Government is more than willing to give away hard working tax payers money to people who don't have any.;) If you are a hard working tax payer then I'm afraid you will have to pay even more to pay back all the government borrowing needed to bail out the greedy bankers.:p

Do I sound cynical? :rotfl:

YorkshireBoy

dosh37 wrote: »

I was not prepared to pay the fee

An emotional decision, based on your principles, or a cold one made following a cost/benefit analysis?

dosh37

An emotional descision based on three large whiskys. :rotfl:

dosh37

Hic! :beer:

opinions4u

Would it be smug to say I can get 6.3% at Egg for the best part of 10 months, and then a sneaky 6% at Halifax for November?

Doomed after that though.

(Although quite enjoying a clutch of 7% for 3 month deals that expire in February and a 6.5% fixed term account that runs until October).

dosh37

Smug indeed!
Just remember - the meek shall inherit the earth.

dosh37

At least that's what my bank manager told me as he was driving off in his mercedes SLK with a smile on his face.

Do I still sound cynical?

YorkshireBoy

opinions4u wrote: »

Would it be smug to say I can get 6.3% at Egg for the best part of 10 months, and then a sneaky 6% at Halifax for November?

Yes, because I've only got 6.3% with Egg until June, and only 5% at Halifax until November.

Doomed after that though.

Likewise!

dosh37

We are all doomed, Captain Mainwaring.
Best go and get p*ssed while we can afford it!