Savings alert! Nationwide cut savings rates from 1st March!

Investor44

mjmal51 wrote: »

Don't worry, they now realise that we are worried about interest rates and have come up with a solution:-
"Internet Banking News We are very mindful of the impact for our savers of the current low interest rate environment. To help savers, on 1 March, we increased the maximum balance limit on e-Savings Plus to £500,000.
Richard Searle
Head Of Electronic Channels
Message updated 1 March 2009"
Isn't that just great?!!! So somebody with £1/2M can now risk it all (-£50,000 guarantee) to get 0.95%.

To be fair the e-savings Plus rate is 2.5% (you are quoting the ordinary e-savings rate) - although as you say anything above £50k is at risk so raising a threshold beyond the £50k seems pointless.

mjmal51

Investor44 wrote: »

To be fair the e-savings Plus rate is 2.5% (you are quoting the ordinary e-savings rate) - although as you say anything above £50k is at risk so raising a threshold beyond the £50k seems pointless.

But if you make more than 3 withdrawals a year, and I think I would if I had £1/2M, then the interest rate on e savings plus is 0.25%!

nzseries1

lilac_lady wrote: »

...The problem is - where are any better rates?

Better rates quoted here:
http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

bristolleedsfan

evenasus wrote: »

I think Nationwide are going to wake up eventually, as people withdraw all the money they can.
I've moved £150K during the last 7 months.

Drop in the ocean to Nationwide BS.


http://www.mirror.co.uk/advice/money/2009/03/02/building-societies-cashing-in-115875-21166625/

"This means that societies, such as Britain’s biggest Nationwide, raked in an extra £10billion last year."

evenasus

bristolleedsfan wrote: »

evenasus wrote: »

I've moved £150K during the last 7 months.

Drop in the ocean to Nationwide BS.

£150K yes - but multiply by ? How many savers do they have? I will be moving out over £100K more later this year as bonds mature.

TheMoneyMan

apt wrote: »

I did not think that NW would go under 1% on the e-saver, but clearly I underestimated it. Bet there's no chance in equivalent cuts in senior executive pay and pensions. I love the various accounts titled Members' or Loyalty, but offering an absolute pittance. The statement earlier in the year about protecting savers was pure hot air. NW - no longer proud to be different.

When base rate is at 1% what do you expect to earn 8% interest! I have all my savings with them and although rates are not that brilliant the fact that they're a mutual and one of the strongest instituations makes it worth while!

So you have to think not only about interest but about your financial security too.

TheMoneyMan

evenasus wrote: »

£150K yes - but multiply by ? How many savers do they have? I will be moving out over £100K more later this year as bonds mature.

Move it to where it's the same EVERYWHERE!

By trying to be too clever you'll probably be attracted to a rate that looks too good to be true then you may end up losing your £100k by investing in an unstable bank!

rb10

TheMoneyMan wrote: »

When base rate is at 1% what do you expect to earn 8% interest! I have all my savings with them and although rates are not that brilliant the fact that they're a mutual and one of the strongest instituations makes it worth while!

So you have to think not only about interest but about your financial security too.

As you are concerned about your 'financial security', I'm assuming that you have over £50k in savings, as otherwise it's a pointless comment. Despite the fact that Nationwide is relatively strong, I still would not risk putting more than the £50k limit in there (if I was lucky enough to have that much!). It's worthwhile splitting it up, for peace of mind should the worst happen.

apt

TheMoneyMan wrote: »

When base rate is at 1% what do you expect to earn 8% interest! I have all my savings with them and although rates are not that brilliant the fact that they're a mutual and one of the strongest instituations makes it worth while!

So you have to think not only about interest but about your financial security too.

Do I expect 8% - of course not. Do I expect rate much closer to the YBS Internet Saver- currently 2.75%? I certainly do and Nationwide savers are being let down by the current board and management.

evenasus

TheMoneyMan wrote: »

Move it to where it's the same EVERYWHERE!

By trying to be too clever you'll probably be attracted to a rate that looks too good to be true then you may end up losing your £100k by investing in an unstable bank!

First of all, I would not put any money in an 'unstable' institution.

I also prefer to use building societies, rather than banks.

As for Nationwide's E Saver. Norwich & Peterborough BS & Yorkshire BS to name but two, are paying nearly three times Nationwide's rate.

Nationwide 0.95% Yorkshire & Norwich & Peterborough BS 2.75%