Check your savings interest rate.

Be_Happy

No this isn't a discussion on savings rates that has strayed onto the wrong board, but simply a warning to fellow silver savers to check their saving rates.

I was discussing ISA rates with an old friend yesterday and we went on to the web to check her rate. She is still recovering!!!

Her savings in a Halifax Cash ISA (just under £3,000) are earning the sum of 0.1% interest. Even if she had the maximum savings tier of over £27,000, she would get the grand sum of 0.61% interest on them. She had chosen this account because she liked the branch-based access and the passbook, plus the bank window is always adorned with posters showing eye-catching interest rates, so she thought it was a good place to save with.

This account appeals to elderly savers because of its simplicity and I think HBOS are just assuming they won't notice the dramatic reduction in the rate, so do be aware. Only consolation is that it surely can't go much lower after future bank rate cuts.

Friend is now considering whether she can switch to a fixed rate ISA.

bristolleedsfan

Mid 2008ish your friend could have got 6.20% ish from Halifax for fixing the ISA for up to 5 years.

Fortyfoot

Check here

Lots of info also on the savings and investments forum

Fortyfoot

sloughflint

Or here:
https://www.emoneyfacts.co.uk/news/savings-news.aspx

margaretclare

If you're no longer paying income tax, which you may not be if you fall into the higher-rate personal tax allowance band for 65+, it may be a waste of time bothering about cash ISAs at all.

I'm no longer paying income tax and I've closed my cash ISA and moved the funds into an internet saver account which is paying better interest - not brilliant, but a lot better than the cash ISA.

Be_Happy

Thanks for info. I've passed it on.

I was lucky enough to fix an old ISA I had with Halifax last year at 6.2% for 4 years and yesterday I went into Nationwide to transfer my current ISA, an instant access one with Nationwide, to a 3 year fixed rate of £4.25 with them, so I've done the best I could

Friend is still unsure whether she can fix her savings, or needs ready access.

Primrose

Thanks for the warning. I would like to see legislation put in place for force banks to write to their customers annually telling them what the current interest rate they are receiving. I know it's a case of Caveat Emptor but elderly people are really taken advantage of, especially if they don't have internet access which allows them to check rates regularly.
I make a point of checking rates of our savings accounts every couple of months and especially after BofE interest rate changes and noting them on a spreadsheet but I know there are many people who never check from one year's end to another. I suspect the current dire state of interest rates may finally encourage a number of people to be more active in this respect.

Eco_Miser

Primrose wrote: »

I would like to see legislation put in place for force banks to write to their customers annually telling them what the current interest rate they are receiving.

Not quite legislation, but the Banking Code requires this in most cases:

Interest on savings accounts
4.6 To help you compare interest rates on all our savings
accounts more easily, at least once a year we will send
you a summary of these products and their current
interest rates unless your account has less than £500
in it. This summary will also include:
• accounts that are no longer available; and
• details of how you can find out about the current
interest rates that apply to your accounts.

The catch is, they could drop the rate the day after they send out the summary, and you wouldn't know for nearly a year unless you kept checking their website or in branch.