First Direct Cash ISA Drop :(

6022tivo

Transferred my ISA to First Direct a few months ago.

Just had a letter saying the interest is dropping.

In my case from 3% to 2%

Gutted it is such a large drop..

Options guys?

xylophone

Options guys?

http://www.thisismoney.co.uk/money/saving/article-1583864/Best-savings-rates-Isas-Cash-Isa-accounts-fixed-rate-Isas.html

Go figure, as our American cousins say....:(

6022tivo

May just drive up to Wakefield, dress as a half bird, half mammal platypus sit outside head office and demand my 3%"

rb10

6022tivo wrote: »

Transferred my ISA to First Direct a few months ago.

Just had a letter saying the interest is dropping.

In my case from 3% to 2%

Gutted it is such a large drop..

Options guys?

Wait until nearer the time.

Hopefully some of the other banks will realise that there's a huge amount of ISA money dropping to a lower rate in October/November (notably the Nationwide 4.25% Flexclusive ISA) and so offer better rates around then.

This may just be wishful thinking on my part...but I don't think there's any hurry to look for somewhere else. Just make sure you do in October.

Archi_Bald

I agree it's probably best to wait until closer to the 'drop' date - - though are we clutching at straws? Banks/BSs still have no incentive whatsoever to pay big (comparatively) interest to savers, and I can't see what would make them want to retain a whole lot of 'expensive' ISA funds. Would be delighted if I was too pessimistic but I fear I am not

xylophone

This may just be wishful thinking on my part.

I fear you may be right! Just see how many providers no longer accept transfers in......

6022tivo

With the government throwing free very low interesting money at the banks, I suppose they have no interest in paying 3%+ to us savers..



Maybe time to stop the QE?


EDIT: I have had a drink, the above may not really mean anything.

lisyloo

Maybe time to stop the QE?

I don't think QE should be stopped purely to help savers (and I am a saver).
We've had a banking crisis and whilst savers have my sympathy there are other issues at stake - like the whole economy.

Savers should consider their options.
I'm sure that some could go down other routes e.g. low risk S&S ISA.

VfM4meplse

6022tivo wrote: »

With the government throwing free very low interesting money at the banks, I suppose they have no interest in paying 3%+ to us savers..

Where did you get the "+" from? It was 2.96% / 3% AER.

Received my notification yesterday too - and am seriously PO'd about it. I doubt we'll see anything better to transfer to before 1st Nov 13.

ScoobyZ

I got mine, dropped from 2.2 to 1.85

smamst

What a shower of !!!!!! they are, only transferred a few months back to take advantage of the 3%, now down to 2%.