Icesave rate increased to 5.95% w.e.f. May 18th

Kazza242

According to Moneyfacts:

Icesave's rate increases from 5.70% to 5.95% from May 18th.

Thisismoney's Has your savings rate increased? article wrongly states that Icesave's rate will increase to 5.90%.

EDIT: The Icesave website now confirms the rate increase to 5.95%, here.

GCH888

Wow ... I was only expecting it to go up to the minimum 5.75%.

If true then hat's off to ICESAVE.

McSaver

Thats only an increase of 0.2% because Icesaves rate is 5.7%. :mad:

There is nothing stated on Icesaves site at the minute. It may well give us the full quarter point and go up to 5.95%

nilrem_2

Well one thing is for sure -: No one can accuse them of being tardy in raising their rates, unlike some institutions who make savers wait several weeks before announcing any increase.

On Monday I shall be moving my other pot from ING and placing it with Icesave!

McSaver

nilrem wrote: »

Well one thing is for sure -: No one can accuse them of being tardy in raising their rates, unlike some institutions who make savers wait several weeks before announcing any increase.

On Monday I shall be moving my other pot from ING and placing it with Icesave!

I dont blame you for moving your money from ING because they will probably put their rates on hold.

Paul_Herring

McSaver wrote: »

I dont blame you for moving your money from ING because they will probably put their rates on hold.

The more cynical of us remember the rate *reduction* a couple of weeks ago, and will expect a token increase.

Kazza242

McSaver wrote: »

Thats only an increase of 0.2% because Icesaves rate is 5.7%. :mad:

There is nothing stated on Icesaves site at the minute. It may well give us the full quarter point and go up to 5.95%

Yes, I agree that Icesave may actually be passing on the full 0.25% because the thisismoney article wrongly states that the rate is increasing from 5.65% to 5.90% when of course the Icesave rate is currently 5.70%.

GCH888

Actually doesn't ICESAVE only guarantee the following:

"The gross Annual Equivalent Rate of Interest ... is guaranteed to exceed the Bank of England Base Rate by at least 0.25% until 1 October 2009"

Now that the BoE rate is 5.5% doesn't this mean ICESAVE could in fact only increase it's rate to 5.75% and still keep it's pledge? Or have I got all the sums wrong??

nilrem_2

McSaver wrote: »

I dont blame you for moving your money from ING because they will probably put their rates on hold.

TBH the only thing that has stopped me moving my cash out of ING is the loss of interest whilst the money is in 'limbo' whilst being transferred, as the differential increases between ING's static rates (sorry should be falling) and other higher rates the interest loss is made up quicker!

Paul_Herring

GCH888 wrote: »

Actually doesn't ICESAVE only guarantee the following:

"The gross Annual Equivalent Rate of Interest ... is guaranteed to exceed the Bank of England Base Rate by at least 0.25% until 1 October 2009"

Now that the BoE rate is 5.5% doesn't this mean ICESAVE could in fact only increase it's rate to 5.75% and still keep it's pledge? Or have I got all the sums wrong??

You have your sums right - what you're failing to take into account is the fact that IceSave may want to remain competative and the only way of doing this is by passing on a .20% or .25% rise.

Kazza242

GCH888 wrote: »

Actually doesn't ICESAVE only guarantee the following:

"The gross Annual Equivalent Rate of Interest ... is guaranteed to exceed the Bank of England Base Rate by at least 0.25% until 1 October 2009"

Now that the BoE rate is 5.5% doesn't this mean ICESAVE could in fact only increase it's rate to 5.75% and still keep it's pledge? Or have I got all the sums wrong??

Yes, Icesave could have been increased their rate by just 0.05% to remain within their guarantee, but they have increased their rate by 0.25% again, which is still excellent considering ING CUT their websaver rate a couple of weeks ago.