Abbey reduce mini cash ISA rate guarantee

Kazza242

According to the Money Mail website, Abbey have reduced the interest rate guarantee on their Postal mini cash isa for 2005/06.

Their mini cash isa guarantee to pay BOE base rate +0.5% (although they are currently paying BOE +0.6%) will remain until 1 April 2005. From 2 April 2005 the guarantee will be reduced to BOE base rate +0.25% until 1 April 2006.

This could see the interest rate on their postal isa reduced to 5.1% from next month - assuming they continue paying 0.1% above their guarantee. They may also decide not to continue paying above their guarantee. Their rate would then fall to 5.0%.

Here's a link to the Money Mail mini cash ISA best buys table.

dunstonh

The abbey postal cash isa was a CAT standard ISA. CAT is being abolished in April 2005. Stakeholder terminology is replacing it.

These have to adhere to set criteria - in the case of the cash account many of the rules are the same as the Cat standards, although the minimum interest rate is now base rate minus 1per cent. (copy and paste)

I'm assuming their changes are in line with the stakeholder rules rather than CAT. Plus an opportunity to reduce their rate.

david78

Marks and Spencer are doing the same (base rate + 0.25%).

Keep an eye out for new "best buys" in April.

Kazza242

david78 wrote:

Marks and Spencer are doing the same (base rate + 0.25%).

Keep an eye out for new "best buys" in April.

I know. I got a letter through from M&S in early February about the rate guarantee reduction .

I hope some better deals do come out in April, as so far the offerings have been a bit disappointing.