Reducing rates again

jonnygenius

M&S advantage cash isa previously paid 3% until 11 Dec. now down to 2.75%, have announced that this rate will be further reduced in March 2013 to 2.25%

Blackdog

jonnygenius wrote: »

M&S advantage cash isa previously paid 3% until 11 Dec. now down to 2.75%, have announced that this rate will be further reduced in March 2013 to 2.25%

Reminds me of that song "down, down, deeper and down"!

headache5678

Yep, but I notice:

M&S are still one of the highest payers for savings accounts at present according to Which?

This site (MSE) includes only M&S plus some other financial institutions who I have never heard of in their best deposit rates listings. Is the takeover by MoneySupermarket a factor ? For example, Which? lists the Post Office, GE Capital Direct and others.

I suspect there could be 2 main factors here. Obviosuly, too much cash around - including cheap QE money to help supply what funding banks need for reduced lending levels. The second factor is probably some year-end balance sheet "window dressing". If banks can reduce assets and liabilities as at their 31DEC FYE reporting dates, this will show inter alia improved year end capital ratios.

I have read a comment that banks are racing to ensure they do not get listed on "best savings rates" tables at present.

innovate

jonnygenius wrote: »

M&S advantage cash isa previously paid 3% until 11 Dec. now down to 2.75%, have announced that this rate will be further reduced in March 2013 to 2.25%

I fear this gives us a bit of an early answer about the March/April 2013 ISA "bonanza". Like: it's cancelled for 2013.

innovate

headache5678 wrote: »

This site (MSE) includes only M&S plus some other financial institutions who I have never heard of in their best deposit rates listings. Is the takeover by MoneySupermarket a factor ? For example, Which? lists the Post Office, GE Capital Direct and others.

MoneySupermarket lists at least as many as Which? does. MSE never provided complete lists for anything banking/saving. Sorry to demolish your conspiracy theory....

headache5678

I did not say or imply a conspiracy theory.



I suggest MSE members look at the Which? lists then they will be able to make up their own mind.

rpc

innovate wrote: »

I fear this gives us a bit of an early answer about the March/April 2013 ISA "bonanza". Like: it's cancelled for 2013.

Banks don't want our money (see the current savings price-war to avoid being in top place). If they don't want it, they aren't going to try and attract it.

Nicholas-bloody-Parsons

2.75% for an ISA, is not a bad rate at the moment. You can only just about match this at Tesco Bank 2.75% fixed for a year. For bigger rates you need to fix longer; eg 3% for 5 years!!!! A long time. I got a one year 3.3% fix last april.

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