Instant Access Savings Accounts Article Discussion Area

Moggles_2

For those mystified by the quote attributed by Geofreyq to Webwiz (#219) which dates from last year, the relevant figures, before tax, are:

Bradford & Bingley E Savings, 4th issue 6.26% AER
IceSave 6.2% AER
ICICI's HiSave 6.3% AER

Moggles_2

Originally Posted by Oval1957
What is happening with Northern Rock has got me extremely jittery. I currently have my life savings in the Bradford and Bingley (far in excess of the safe amount should it go under).

I read in the Times on Saturday that the Alliance and Leicester and the Bradford and Bingley both operate similarly to the Northern Rock Bank. I am wondering what to do for the best now.

Not wishing to panic, I was wondering whether to spread my capital out amongst the biggest institutions or just leave it in the Bradford and Bingley. What would you do?

Well, Northern Rock is by far the most exposed because 73% of its funding comes from the wholesale market, only 27% from retail deposits. The others with significant exposure are Halifax with 43%, Bradford & Bingley at 42% and Alliance & Leicester at 38%. Lloyds TSB has 28% exposure, Royal Bank of Scotland 17%, Barclays 10%, while HSBC more than covers its mortgage liabilities with customer savings.

That said, for purely practical reasons, it's always advisable, IMO, to have savings with more than the one institution.

luv_my_brass

Oval1957 wrote: »

I note with interest what you say about keeping your money all cosy in the same place, and what is happening with Northern Rock has got me extremely jittery. I currently have my life savings in the Bradford and Bingley (far in excess of the safe amount should it go under). I read in the Times on Saturday that the Alliance and Leicester and the Bradford and Bingley both operate similarly to the Northern Rock Bank. I am wondering what to do for the best now. Not wishing to panic, I was wondering whether to spread my capital out amongst the biggest institutions or just leave it in the Bradford and Bingley. What would you do?

I too have been giving this some thought over the last few days, NR don't pay the best interet so that alone is enough reason to put my money elsewhere. I did like having all my money in one place, but have now decided to devide it between ING, Coventry and Icesave. I still have almost 10k in isa's purchased through NR and wondering what the risk involved is, by leaving them until April, haven't read up on the conditions yet, so not sure what interest I would lose by moving them now.

XXXX

harryhound wrote: »

Anybody know how to invest with the Bank of China?

They have more money than they know what to do with.

Bank of China? You must be joking.

Years ago I had an saving account with them, every time it took me 3 quarters of my 1 hour lunch break just to queue in their Shaftesbury Ave. branch, and both their interests rates and services were appalling, not mentioning how corrupted their bank staff might be and how unsafe your saving could be.

One day when I was fed up with it, I withdrew all my funds in big lump of cash then carried it to the bank next door. Never return to them ever since.:dance:

XXXX

Moggles wrote: »

This is a pity because HiSave is a clean, no-tricks a/c, paying a market-leading interest rate and ICICI have always raised rates promptly in response to BoE base rate changes.

Thankfully, Icesave offers all this now, without the never-ending hassle!

Pity indeed. In fact ICICI only raised rates promptly after their rival Icesave offers better rates, by that time I had closed my account with them already.

Now they try better but I still do not understand how they work out 6.30% AER while 6.13% gross when no bonus involved?

Anyone knows better?

Hustler

I've just read this article, very informative thank you, and decided to invest in one of the recommended building societies.
But, we've recently moved to France and the sites I've checked so far to register all assume you live in the UK and French postcodes get you nowhere.
So is it a case of the good old fashioned telephone to register or are these accounts for UK folk only ?
Thank you.

shoi

Following the NR panic and so on I read that in the USA and Europe you get absolute guarantees of 100% of your savings (rather than the 2k+90%,max31700 we get here)
So has anybody tried opening savings accounts in Europe, how's it done?

Moggles_2

Originally Posted by XXXX
I still do not understand how they [ICICI] work out 6.30% AER while 6.13% gross when no bonus involved?

For an explanation, have a look at Martin's *Interest Rates Guide" on the main site.

Moggles_2

Hi Hustler

Welcome to MSE!

I've just read this article, very informative thank you, and decided to invest in one of the recommended building societies.

We've recently moved to France and the sites I've checked so far to register all assume you live in the UK and French postcodes get you nowhere. So is it a case of the good old fashioned telephone to register or are these accounts for UK folk only ?

Yes. These accounts are intended for use by UK residents only. I would think you need to investigate accounts which are offered specifically for British Nationals living overseas.

geoffreyq

Oval1957 wrote: »

I note with interest what you say about keeping your money all cosy in the same place, and what is happening with Northern Rock has got me extremely jittery. I currently have my life savings in the Bradford and Bingley (far in excess of the safe amount should it go under). I read in the Times on Saturday that the Alliance and Leicester and the Bradford and Bingley both operate similarly to the Northern Rock Bank. I am wondering what to do for the best now. Not wishing to panic, I was wondering whether to spread my capital out amongst the biggest institutions or just leave it in the Bradford and Bingley. What would you do?

Post the Government Northern Rock guarantee it is unlikely that they would let any bank fail in the near future. The basic options are simply to split one's cash deposits between institutions or to invest in cash units trust (or equivalent) which have a wide spread of deposits.
I hate to think how long it would take and how much interest would be lost trying to recover one's money were a bank to fail. I personally have always split deposits, pensions and investments between many providers. My guiding rule is simply to ask myself : if one of these went bust and I had no access to it for two years, would I be seriously inconvenienced? If so, I reconsider my options. You lose almost nothing and avoid being wholly dependent on the the rare but inevitable disaster......