Skipton BS account giving a fixed interest differential above base rate

avalanche_3

This looks like a good bet if you think Bank base rate will increase.

The account gives a 2.15% to 2.75% differential above base rate for period 2, 3 or 4 years.

So you get up to 3.25% at the moment. ( base rate 0.5% )

You can make withdrawals but you loose between 30 and 90 days interest, you choose this period when you open the account.

If the base rate went up to say 2.5% then you would get up to 5.25% interest and still have access to your money.

For full details see the Skipton website.

2.75% seems like a good differential above base rate

atypical

Quite an interesting account. The largest differential is 2.75% for a 4 year term with 90 days loss of interest if you withdraw before the term is over. The smaller differential is 2.15% for a 2 year term with 30 days loss of interest.

Product page here.

Interest rates here.

anna42hmr

thanks for the link, will have a look at that,

avalanche_3

Just bumping this up now links provided.

JohalaReewi

Although the daily mail reckons the base rate isn't expected to rise until 2011 at the earliest...
http://www.dailymail.co.uk/news/article-1248469/Bank-England-suspends-quantitative-easing-scheme-holds-rates-0-5.html

But the BBC reckons an increase to 1% by the end of 2010...
http://news.bbc.co.uk/2/hi/business/8493097.stm

avalanche_3

What do they know?

This is all pure guess work but one things pretty certain the base rate can't fall much!

I would think though that you have a very safe bet that the base rate will increase in the next 2 years.

Reaper

The problem will be if inflation increases but the base rate does not or it increases only slightly. Something I fear is quite likely. Normally base rates increase with inflation but with the ecomony still "bumping along the bottom", as the governor of the Bank of England put it, the chances are they won't dare put base rates up.

Sceptic001

Reaper wrote: »

The problem will be if inflation increases but the base rate does not or it increases only slightly. Something I fear is quite likely. Normally base rates increase with inflation but with the ecomony still "bumping along the bottom", as the governor of the Bank of England put it, the chances are they won't dare put base rates up.

Spot on, Reaper. The crunch will come when inflation starts to rise. If the economy is still on its back, theoretically the BofE will still be forced to raise interest rates to counter inflation. Perhaps the Governor's comment today about the expected inflation rate rise being "temporary" is the first shot to justify not increasing base rate, which is already out of kilter with interest rates in the real world.

Sceptic001

This product has now been removed from Skipton's website. Looks like they don't have the BofE's confidence that inflation is a temporary blip.

MickBee

Has anyone managed to register for the WebSaver - or use their website to send data to them recently (as opposed to just reading their info)?

I have wasted quite a bit of time yesterday & today trying to register for the WebSaver account - keep getting stuck in a loop at Page 3 of 4 "Session invalid or expired" - the Customer Service line is always busy and their callback system doesn't (call back, that is.)
I tried both "email the Chief Executive" and the Website Feedback Form " Listening to you matters" on their website, and both resulted in ! "Sorry, an unspecified error has occured" (note the spelling.)


My assumption is that they are telling me that they don't want my money - or that I would be foolish to entrust it to them, however attractive the rates.

!