About to use BOE+0.39% offset

jimmyjones_2

When the base rate tumbled and I was lucky to be enough to be on a lifetime BOE+0.39% base rate tracker mortgage.

Scottish Widows sent me a letter reminding me of the offset facility which I found amusing because only a mug would offset at 0.89% when you can just stick the money in a savings account and make more than that.

I am now about to move my slush fund into the offset account as NS&I income bonds have significantly reduced their interest rate.

I cant actually find an instant access savings account that significantly beats the effective 1.48% of the offset (40% tax).

Has anyone else on a low base rate tracker resorted to using their offset facility?

alanq

Instant access or frequent instant access?

Britannia Select Access Saver 3 1.75% instant IF no more than 4 withdrawals are made in a calendar year. Branch / post / telephone withdrawals only.
http://www.britannia.co.uk/_site/channels/savings/easy-access/select-access-saver3/index.html

grey_gym_sock

how much more is significantly more?

Thrugelmir

jimmyjones wrote: »

Has anyone else on a low base rate tracker resorted to using their offset facility?

Use it all the time for short term deposits. Not worth the hassle to spend time chasing instant access rates. I can earn more with my time !

kidmugsy

You are spurning Premium Bonds, then?

jimmyjones_2

Thrugelmir wrote: »

Use it all the time for short term deposits. Not worth the hassle to spend time chasing instant access rates. I can earn more with my time !

I am coming round to your way of thinking

jimmyjones_2

kidmugsy wrote: »

You are spurning Premium Bonds, then?

No, I have some premium bonds but don't consider them an instant access savings account.

jimmyjones_2

grey_gym_sock wrote: »

how much more is significantly more?

Best I can find is 1.5%... not worth the hassle for 0.2% IMO.