First Direct Cash ISA Drop :(

Mickygg

The Santander 2 year major ISA was an option for me but went for FD instead. aaarrgghhh. I still think come October we will struggle to better on 2%, being instant access and monthly interest.

ColdIron

Mickygg wrote: »

The Santander 2 year major ISA was an option for me but went for FD instead. aaarrgghhh.

Same here but the choice of 3% fixed or variable made it a no brainer, rates were always heading in one direction. Maybe you would be best to sit it out on 2%, wait for April '14 and hope for a repetition. Santander were head and shoulders above most other providers, maybe they'll do it again

VfM4meplse

I'd be happier if FD allowed ISA savings to be offset against mortgages, but they don't. Perhaps a little bit unrealistic, but a nice dream none the less.

Mickygg

ColdIron wrote: »

Same here but the choice of 3% fixed or variable made it a no brainer, rates were always heading in one direction. Maybe you would be best to sit it out on 2%, wait for April '14 and hope for a repetition. Santander were head and shoulders above most other providers, maybe they'll do it again

Thanks. Yes think you're right to sit it out until the end of the tax year for hopefully better rates.
I transferred my Isa back in February to FD before the major was around. I ummed and erred but hoped FD when they dropped would keep the rates for existing customers.
Oh well can't win them all!

ffacoffipawb

Mickygg wrote: »

Thanks. Yes think you're right to sit it out until the end of the tax year for hopefully better rates.
I transferred my Isa back in February to FD before the major was around. I ummed and erred but hoped FD when they dropped would keep the rates for existing customers.
Oh well can't win them all!

In June 2011 I took a 5 year fix with Birmingham Midshires at 4.89% monthly interest (5% AER).

Wasn't sure at the time and paid a 1.25% (180 days interest) penalty to withdraw from a Lloyds TSB 2 year fixed rate ISA to take this up. So net of that penalty I am getting 4.75% pa over 5 years.

I am glad I did this now as there is still just under 3 years left at this rate. Hopefully rates will be better in July 2016.

Herbalus

It's a strange move. The lower bracket (up to £5000) is going to jump from 0.5% to 1.3%, and the next bracket is going up from 1.2% to 1.5%. Perhaps they're trying to incentivise people to start saving at the expense of those who already have.

oldfella

I suspect their rationale is they have attracted a lot of £40k + savers and are now hoping they dont move away. Meanwhile make it more attractive for lower savers, then repeat the process in a while.

Inertia wins for the banks.

Yorkie1

I'm one of those savers, and having done a quick recce when the rate was announced, there's pitifully few offers to match the reduced offer, sadly. Inertia it might not be, but that there's no better offers ...

Turtle

The rate is still one of the best and allows transfers in.