What were best interest rates before recession?
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mlc2009
Posts: 117 Forumite
As I never looked into them before recession and only now and I seeing the painfully low rates, what sort of interest rates were around when times were good?
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Mid 2007, just before the Northern Rock fiasco, you could generally get around 6% on an Internet savings account. Now it's in the order of 2.75%, but even then only including a limited-time 'bonus'.
I wouldn't necessarily call mid 2007 "When times were good". Actually, BOE base rates were around 5.75% then, against which 6% is not brilliant, compared with 2.75% (which is 2.25% above BOE Base rate).
History shows a continuing 'pendulum' effect of differences as between interest rates (official BOE rate and actual savers' rates) and Inflation. Some periods (like now) deliver savings rates far less than inflation. Other periods deliver massive 'real' growth in savings. But even then, each individual's view on whether or not that was 'good' will depend very largely upon whether he/she was a net borrower or net saver.
As an aside, I was looking at my old Endowment Life Assurance policies the other day - working out the equivalent of an "APR" on my premiums. I had 5 of them (with one company) over the 1972/1998 period, and another 2 (with another Insurance Company) over 1988/2009. The first 5 actually delivered over 11% annual compound growth over that period, and surprisingly, the other 2 produced between 9% and 10%. Tax free into the bargain. No other 'safe' investment I know of would have delivered anything like that.0 -
Kaupthing Edge was offering around 6.7% just before it collapsed (and some of the three year accounts still run with ING until next year).0
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ahhhh, Icesave 7.01% :wistful:0
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Seem to remember we were getting in excess of 6% for longer term bonds with Icesave. Was sorry to see that bank go under. It was so easy dealing with them. Wish I'd had an opportunity to invest in a 10 year bond with them. It could be a long, long time before we ever see those kinds of rates again.0
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Just got in to The AA fixed one year bond paying 7.2% before it was pulled."When the Government borrows, the citizen has to save".
Machiavellii0 -
Interesting that most of those banks mentioned ended up going bust or being bailed out (AA comes under Bank of Scotland). My best rates in institutions which remained solvent were 6.3% instant access in Egg (although Citibank did teeter...) and 7% one year fixed in Nationwide.0
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I got 10% from B&B back in the day on a regular/Christmas saver type account - no doubt inflation made this seem far less impressive, but as a naive 19? year old it was heaven sent0
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12% on a Halifax Regular Saver / 7.1% with Anglo Irish and (still running for existing customers) 2% + 5% (8.25% gross equivalent) taxback on a Charity Bank CITR account.
Seems a long time ago.If you want to test the depth of the water .........don't use both feet !0 -
The best one has to be Egg's 6.3% fixed rate for a year and instant access account. They were offering this after others were closing offers/rates were tumblings. Loads of us cashed in, the website was crashing in the last days before they pulled it. Opened one for myself & the Mrs, made thousands in interest on it last year. Happy times (except for someone at Egg who must have got sacked....);)0
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6.5 % four year fixed ISA, still on it :beer:'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
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