Regularly Beat the Best Savings Account Rates Discussion Area

Nick_C

Yorkshire BS and Scarborough BS certainly take postal applications, pretty sure Nationwide do too. You can download applications or request application packs on the web sites.

barracuda_2

Hi Everyone

I am completely new to saving(much better at spending!) and have a very basic question regarding interest rates. What I would like to know is how and when rate changes are applied. This is what happened to me and I am now a bit confused?
Between xmas and new year I looked on MSE and saw that the AA through Birmingham midshires had raised their rate to 6.5 with a 0.25 for 6 month bonus. So I applied straight away, the paperwork arrived asking to send cheque and for another reason I looked on the AA website only to find it is now 6.25 with a 0.26 for 6 month bonus?? I phoned up and was told this was down to the BoE rate change?? Surely this was a con to get you to apply as they said that this is the only rate now? Out of principle I feel like going somewhere else now or is this the norm?
Any suggestions welcome. Thanks Steve

RayWolfe

It is quite normal for providers to change interest rates on variable rate accounts about a month after the BOE changes.
If it was a fixed rate account then the rate that applies is the rate in effect when your application arrives. If your account is fixed rate and the paperwork they sent you should show the rate that applies and the new rate will apply to new applicants, not to you.
Works in reverse when rates are going up so with a bit of luck, if you stay a saver you may benefit in the future.

Nomad25

Nick C: Tks, but I have tried both of those - you can operate on-line, but have to open the account in person. Am going to check out N'Wide this p.m.

Nick_C

I opened both these accounts by post and I don't think anything has changed.

YBS web site says you can open by post. Go to https://online.ybs.co.uk/public/contact_us/request_form.do
Fill in the on line form and they will send you an application pack. When you fill in the on line form, you have to state the type of account you want. Tick "branch based savings account", and in the "additional requests and queries" box, specify that you want the regular saver account.

For Scarborough BS, go to
http://www.scarboroughbs.co.uk/savingsandinvestments/howtoopenanaccount.html

Read the section called "Scarborough Investments Direct (Postal)"

From there, there is a link to an on-line application screen. Fill in your details then print it off and sign it.

http://www.scarboroughbs.co.uk/savingsandinvestments/appform.asp

Finally, Nationwide, start from
http://www.nationwide.co.uk/savings/regular_savings/apply.htm
and take it from there!

barracuda_2

RayWolfe wrote: »

It is quite normal for providers to change interest rates on variable rate accounts about a month after the BOE changes.
If it was a fixed rate account then the rate that applies is the rate in effect when your application arrives. If your account is fixed rate and the paperwork they sent you should show the rate that applies and the new rate will apply to new applicants, not to you.
Works in reverse when rates are going up so with a bit of luck, if you stay a saver you may benefit in the future.

Thanks for the reply Ray. What I should have said was that it is a variable rate. What gets me is that AFTER BoE dropped the rate the AA RAISED theirs from 6.3 to 6.5 then REDUCED it a week later. This still seems to me as a trick to drum up new accounts. Can rates be changed whenever the bank/BS decides? Sorry if I am a bit naive on these matters but I would have thought that rates can't go up and down daily? Regards Steve

redcar_2

Nomad25 wrote: »

Nick C: Tks, but I have tried both of those - you can operate on-line, but have to open the account in person. Am going to check out N'Wide this p.m.

The skipton special savers (x3) you can phone for an application form and reply by post too. I'm waiting to get round to a branch visit to open the xmas one as thats face to face.

kellymarie83

Hi, Im new to mse (only my second post!) and am a little confused.

Im 24 and am saving for a house (hopefully in 1-2 years). I have £9000 in an ISA at 5.5% (max amount added this year) and £4000 in stocks and shares (add £200 per month). I also have £5000 in my current acccount which I would like to put in a high interest account. Would it be best to take out a higher interest ISA in april adding £3000 and transfering balance OR put the money in a high interest savings account like Aliance and Leicester's 12%? I will also be able to save about £250 a month.

Please could anyone advice me? Ive read martins threads and advice, but Im still baffled what my best options are for maximum interest gain.

Thanks in advance.

pfpf

didnt really want to post a new thread for this so here goes.

are there any main articles or threads discussing the fixed rate/bond savings accounts?

i have seen the fantastic threads put together on "Best ISA'S" and "Best instant savings accounts" and see they are kept up to date by their authors. however i cant even find any mention of fixed rates in the Banking/Saving section of the main site.

i have searched "Bond" and "fixed" with nothing jumping out at me.

thanks.

mary

redcar wrote: »

The skipton special savers (x3) you can phone for an application form and reply by post too. I'm waiting to get round to a branch visit to open the xmas one as thats face to face.

Not true. Have never set foot in a Skipton BS, opened both Special Saver and Xmas Saver by post in the same envelope. Both up and running, no problems.