MSE News: Savings 'price skirmish' breaks out

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"battle has broken out among banks and building societies over which offers the best easy access savings rate ..."

Read the full story:

Savings 'price skirmish' breaks out

michaels

I have noticed that it is often worth grabbing top paying accounts when they are available every few months when they come out even if at the time they don't seem that competitive as a backup to transfer funds to when current bonus rates come to an end in case nothing better is available then.

dodgeydave

Just my two pence worth.
It's certainly a small move in the right direction. Not enough in my opinion to make it worth the effort.
My recent experience of opening accounts and getting the cash into them on line has taken several months. i.e sending proof of identity. Consequently I only benefit from a 10 month enhanced rate which makes it a tedious waste of time for small return.
To transfer an amount above £10000 in itself is a tedious affair.
Also when new accounts with a greater rate are offered then they are usually for new customers.

SilentMinority

What "price skirmish"?

It isn't even "handbags at dawn".

I think I'll wait for some "real" news.

Old_Wrinkly

from the article

Yet West Bromwich Building Society is the current best buy, if you can save at least £1,000.
Its Websave Bonus Account, launched within hours of the Egg account, pays an overall 2.83% for the next year (including a one percentage point bonus up to 31 March 2011).
This means you're effectively earning the equivalent of 3% for the next 10 months, while the bonus stands.

I think it might be helpful for Guy/Dan to explain how they get the 3%.

Stompa

Old_Wrinkly wrote: »

from the article
I think it might be helpful for Guy/Dan to explain how they get the 3%.

I wondered that at first, but it's explained here:

http://www.westbrom.co.uk/westbrom/savings.product?id=5254&category=52

you get 3% gross until 31/03/2011, at which point the 1% bonus ends, which makes the AER a little less than 3%.

Old_Wrinkly

Yes, the AER will continue to reduce over the year, until it becomes 2% next April 1st.
If you transfer your money out of the account on 31 March 2011, then you will be getting 3% gross until then.

With so many 'bonus' schemes available, isn't it becoming better to specify what the rate actually is, and when you should 'jump ship', rather than quoting AERs which are continually on the move.

Stompa

Old_Wrinkly wrote: »

With so many 'bonus' schemes available, isn't it becoming better to specify what the rate actually is, and when you should 'jump ship', rather than quoting AERs which are continually on the move.

I'm inclined to agree.

technobear

If, like me, you think that bonus accounts are something you wouldn't want to step in, you can get an instant accesss Web Saver account from Skipton BS which pays 2.76% with no bonus and no catches.

oldagetraveller

technobear wrote: »

If, like me, you think that bonus accounts are something you wouldn't want to step in, you can get an instant accesss Web Saver account from Skipton BS which pays 2.76% with no bonus and no catches.

They must have reduced it today then?
http://www.skipton.co.uk/savings_and_investments/e-savings/web_saver/?utm_source=homepage&utm_medium=banner&utm_campaign=websaverMay2010

D1zzy

technobear wrote: »

If, like me, you think that bonus accounts are something you wouldn't want to step in, you can get an instant accesss Web Saver account from Skipton BS which pays 2.76% with no bonus and no catches.

I have exactly the opposite opinion - the bigger the bonus the better -at least that bit is guaranteed.
Over the last couple of years I have on principle, opened any instant access account which has a "good" rate for the time - even if it only ever gets £1. Last year at various times Egg@3.25%, Tesco@3% and ING @3.2% which will see me through to the end of this year for any maturing Fixed raters, for which I can't find a decent home at the time