Skipton flex-tracker

apt

Savers who think that base-rates are going to rise next year might by interested in the Skipton flexi-tracker. http://www.skipton.co.uk/savings_and_investments/savings_accounts/flexiTracker/?utm_source=homepage&utm_medium=banner&utm_campaign=flexiTrackerMainBanner

It lasts 2, 3, or 4 years and offers a fixed margin over base rate. The 4 year account offers 2.45% over base rate with 30 days loss of interest on withdrawals and 2.75% with 90 days loss. Minimum balance is £500 and new money can be added while the issue is still open.

LittleVoice

apt wrote: »

savers who think that base-rates are going to rise next year might by interested in the swindon flexi-tracker. http://www.skipton.co.uk/savings_and_investments/savings_accounts/flexitracker/?utm_source=homepage&utm_medium=banner&utm_campaign=flexitrackermainbanner

??? ,,,,,,,,,,,,,,,,,

pbw

this does really sound like a load of crap.

if someone wants a 4 year term, they can go to principality BS and get 5.10% from the outset.

with this skipton 4 year bond, one would get 2.75% + 0.5% = 3.25% from the outset.

this means that BoE rates would have to rise by a minimum of 2% to match the principality bond and increase more with the time wasted where it is below principality bond.

at best it sounds exciting in the sense that this bond is a gamble and has the (very very small) potential of making a lot of interest however unlikely

withnell

BoE base rate was at 5% less than a year ago

I think it highly likely that the base rate will move up by at least 2% in the next year, and probably by a fair bit more - so this product is very good for a balanced saving portfolio

alanq

pbw wrote: »

this does really sound like a load of crap.
if someone wants a 4 year term, they can go to principality BS and get 5.10% from the outset.

You're not comparing like with like. The Principality 4-year bond doesn't allow access during its term except "Closure permitted subject to loss of 360 days' gross interest."