MSE news: Boost for savers as trio of top accounts launch (Barnsley, YBS, Halifax)

malik999

freakinthefield wrote: »

Hi, all,

Bit of a novice to all this stuff, but could use some advice from all you Money Saving Experts.

I want to set up a savings account in my own name (to avoid complications with tax liability) but controlled by my mother (so I can't try to spend the dosh!) and don't know where would be the best place for this. At the moment, I have £51 put by for this account, with more to come on Tuesday, and then in dribs and drabs ongoing.

Any advice would be most gratefully received. The main thing is that I shouldn't have access to withdraw funds, but can pay in online whenever I want to from my main current account. Ideally, I would like all bank correspondence regarding this new savings account to go to my mother, rather than to me, but don't know if this is allowed - would it smack of money-laundering??!??

I anticipate that the money will stay in this account and gradually build up over at least the next 5 years, but I'm not sure whether or not it makes sense to put it in something that is fixed for 5 years. After all, the rates might improve dramatically before the end of 5 years - we must stay positive!

So I leave it with you, and many thanks in advance for your consideration of this.

Cheers,

Freak
;)

Some good information here:
http://www.moneysavingexpert.com/savings/child-savings-tax-free

ffacoffipawb

harz99 wrote: »

The Barnsley offer has one important (to some of us) thing that the Newcastle did not -it offers a paid away monthly income option.

The Newcastle account also had a monthly income option. I should know, because I selected it!

harz99

ffacoffipawb wrote: »

The Newcastle account also had a monthly income option. I should know, because I selected it!

Thanks for the correction; that post came out wrong - it was supposed to be positive not negative - maybe I should change to Confused99?!

thor

Steve_xx wrote: »

Also, to be taken into consideration is the potential that the banks are offering good rates at the minute due to the fact that they need to bolster their balance sheets, this is regardless of base rate being at 0.5%.

and offering good rates desoite there being deflation as well.
Saving rates may continue to go up as it appears that they are not tied to boe rates or indeed inflation. You just have to take a gamble and hope for the best(just like you have to do when buying or selling equities)

juicyjude

Just spoken to Yorkshire B Soc and they say that the 3 year fixed rate thatI took out in branch will go onto a 2 year roll over once it matures but then I have a month to decide what to do with it and can take the whole lot out and re invest if I wish. Phew, thought I had dropped a clanger then!!!!!!!!! Who knows whats going to happen in a few years time with interest rates, but I feel happier now knowing that the money is earning interest and that I will get a reasonable rate of monthly interest as I need the income.

Steve_xx

The bonds are similar to those launched online recently. The rates and maturity dates are the same. The only exception is that they are branch or postal operated so there might be a lengthier period before closure.

Fixed Rate Bonds – launch date 21 July 2009.

Operated by post or in branch paying:

5.00% maturing 30 Sep 2012

5.15% maturing 30 Sep 2013

5.40% maturing 30 Sep 2014


3 YEAR FIXED RATE BOND: a fixed term branch and postal operated account maturing 30.9.12 with a minimum investment of £100 paying 5.00% yearly (4.89% monthly).

4 YEAR FIXED RATE BOND: a fixed term branch and postal operated account maturing 30.9.13 with a minimum investment of £100 paying 5.15% yearly (5.03% monthly).

5 YEAR FIXED RATE BOND: a fixed term branch and postal operated account maturing 30.9.14 with a minimum investment of £100 paying 5.40% yearly (5.27% monthly). For all 3 bonds.

No earlier access permitted.

Further additions allowed whilst issue remains open. On maturity transfers to Falcon Instant account unless other instructions received.

ashteadgirl

According to article on emoneyfacts news https://www.emoneyfacts.co.uk/news/savings-news.aspx?newsarticleid=187642These

New Barnsley postal/branch bonds available WEF 21/7/09
Sorry Steve not picking holes in your excellent record of keeping the forum up to date just read the article.
Also just want to say how useful MSE and the forum is in these not so great times.

Steve_xx

ashteadgirl wrote: »

New Barnsley postal/branch bonds available WEF 21/7/09
Sorry Steve not picking holes in your excellent record of keeping the forum up to date just read the article.
Also just want to say how useful MSE and the forum is in these not so great times.

Thanks, I've adjusted my post to reflect what you said.

parkersages

Does anyone know a Bank or Building Society that has a product (saving or bond not equity linked) accepting funds from Discretionary Trusts with a decent interest rate, please

miserable_ol_so_n_so

Speculator wrote: »

Base rate is still 0.5% and we are seeing 5 yr Bonds paying 5.4%!

I think the base rates as set by BOE are no longer relevant to savers or borrowers. Mortgage borrowers (except for a few who did not have the collar type agreement) are paying way over the base rates. Personal loans, credit card loans too havent come down a lot either. I saw one credit card advert at 34.9% interest! Lethargic savers are getting close to nothing.

I think we are once again (like what happened about this time last year when Halifax offered 12% on regular saver account!) entering a period where the institutions will once again court savers cash by upping rates. The base rate as set by the BOE will become more and more irrelevant under these circumstances.