ICICI HiSave interest rates hiked to 6.05%

exel1966

I'd leave the £3.5K in the Icesave and put all the new money into ICICI (at least for the time being).

gogsboy

With regards to these type of accounts I have seen people ask how safe their money is and seen people talk of some code that basically covers you for about 30k or so, is this correct.

Where is the safest place to put more money than this, ie if sell house as considering doing so talking around £120k or so.

Is this best spread across various accounts with no more that 30k in them?

Seems a bit of hassle but if it means safety...any ideas?

exel1966

The Code is that of the Financial Services Authority which protects your money up to a max of £33K with a max payout of £31,700. Nearly all banks conform to this.
You'd probably have a lot more chance of getting run over by a bus than having to claim from the FSA using the Financial Services Compensation Scheme, but if it worries you,then yes spread your money over a few accounts.
The scheme gives 100% protection to the first £2000 of your funds, 90% thereafter up to £33,000 amounting to a max of £31,700.

M3_Sussex

gogsboy wrote: »

With regards to these type of accounts I have seen people ask how safe their money is and seen people talk of some code that basically covers you for about 30k or so, is this correct.

Where is the safest place to put more money than this, ie if sell house as considering doing so talking around £120k or so.

Is this best spread across various accounts with no more that 30k in them?

Seems a bit of hassle but if it means safety...any ideas?

Given the size of companies like ICICI, I think it highly unlikely you'd get a problem. They currently have assets of US$61.5 Billion so not too shabby.

siber

I've also just had the email from ICICI confirming their interest rate will rise to 6.05% AER as of May 18th. This now puts them on par with NS&I cash ISA rate. Perhaps this was the benchmark they wanted to meet?

GCH888

Big difference if you're a tax payer though ...

agent_orange_2

Should I have had my icici interest paid certificate for 2006-2007 yet?

cheers.

EagerLearner

I am self-employed - only 4 months into it, what do I need to do re savings? Have to do return for Jan - March soon but not sure about savings - have savings with ICeSave and First Direct ISA. Many thanks...

Paul_Herring

EagerLearner wrote: »

Will it really be worth me sending payments to ICICI now instead given that on the 18th May they are also raising their rates?

Since you still have both accounts open, and this would be new money going in, not transfer of old money, then yes.

The 0.1% difference equates to 80 pence per £1000 per year after tax. Transferring old money would result in a loss of 13(.04) pence per day (£1000 * 5.95% * 80% / 365) in lost interest during transfer. Since you typically have to transfer from IceSave via linked account to ICICI that's at least 6 days, or 78p, delay. ICICI would have to be consistantly higher by 0.1% for a year before you recouped the lost interest.

EagerLearner

Thanks Paul - I thought it would be pennies!I think you are saying stay with IceSave then? Sometimes I don't have £200 per week to put in...