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MSE News: New savings blow as top rate disappears

edited 30 November -1 at 1:00AM in Savings & Investments
16 replies 2.9K views
MSE_GuyMSE_Guy MSE Staff
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I've been Money Tipped! Newshound! Chutzpah Haggler
edited 30 November -1 at 1:00AM in Savings & Investments
This is the discussion thread for the following MSE News Story:

"Coventry Building Society has withdrawn its 3.15%-paying account, as rates continue to take a battering from inflation ..."

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Replies

  • MickyggMickygg Forumite
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    Next best one is the AA internet account at 3.0% with a 2.5% fixed bonus. This one does not limit the number of withdrawals you can make. Took me 2 weeks from application to be set up and move some money across.
  • aleph_0aleph_0 Forumite
    536 posts
    The staff in Barclays told me today that their monthly saver going down from 4.25% to 3.25% on Monday for new applications too. :(
  • DaleNDaleN Forumite
    27 posts
    Best option then is to pay the money that would have gone into savings into your mortgage instead, if you are allowed to make over-payments. You are avoiding having to pay out interest at the rate of your mortgage, at the expense of not receiving interest at the much lower rate of the savings account, so you are better off by the difference between the two rates in the long run, and it's tax free!

    Only downside is that you can't access it later on if you needed the cash for something, unless you have one of those mortgages that allows withdrawals. Upside is you could pay off your house a few years(!) early and save thousands in interest.
  • ArthurianArthurian Forumite
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    Is it worth scouring the world for rates above inflation, but lacking the FSA £50,000 guarantee? For example, Ordinary Fixed Deposits at Standard Bank, South Africa, earn at least 6.10% when fixed for 33 days or more. They have offshore branches in Jersey and the Isle of Man. There's no FSA guarantee, and it's a gamble on currency fluctuations, but I don't see our currency doing too well at the moment.
  • evenasusevenasus Forumite
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    DaleN wrote: »
    Best option then is to pay the money that would have gone into savings into your mortgage instead, if you are allowed to make over-payments.

    Mortgage paid off some years ago.
    Arthurian wrote: »
    Is it worth scouring the world for rates above inflation, but lacking the FSA £50,000 guarantee?

    Wouldn't go for anything without FSA guarantee - not even if they offered 50%.
    The time for saving for a house deposit, is before you marry/live together/have children.
    Save for what you want to buy
    .

    You're - You are
    Your - It's yours.
  • evenasusevenasus Forumite
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    Actually tempted to top up the Coventry 4.25% Fixed Rate Bond (118) to 31.08.2012 to the £50K limit.
    I have the limit with them but some of the money is still earning 3.25% in their 50 Plus eSave (6) till August.

    Decisions decisions - if only I had a crystal ball. ;)
    The time for saving for a house deposit, is before you marry/live together/have children.
    Save for what you want to buy
    .

    You're - You are
    Your - It's yours.
  • I have to admit, at this point I'm intending to get either the Santander or A&L current account for my savings, since they have interest rates of 6%. It may be only for one year, but it's a hell of a lot better than any of the savings accounts!
    I'm broke, not poor. Poor sounds permanent, broke can be fixed. (Thoroughly Modern Millie)
    LBM June 2009, Debt Free (except mortgage) Sept 2016 - DONE IT!
  • evenasusevenasus Forumite
    11.9K posts
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    I have to admit, at this point I'm intending to get either the Santander or A&L current account for my savings, since they have interest rates of 6%. It may be only for one year, but it's a hell of a lot better than any of the savings accounts!

    But no good for large amounts of savings.
    The time for saving for a house deposit, is before you marry/live together/have children.
    Save for what you want to buy
    .

    You're - You are
    Your - It's yours.
  • Eh, good point. I don't have large amounts of savings. *grin*
    I'm broke, not poor. Poor sounds permanent, broke can be fixed. (Thoroughly Modern Millie)
    LBM June 2009, Debt Free (except mortgage) Sept 2016 - DONE IT!
  • KTFKTF Forumite
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    Depending on the definition of 'large' you could always open a Lloyds TSB Vantage current account and get 4% on 7k if you push 1k through the account per month. You can open 3 (sometimes more) of them as well.
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