Virgin reduces rate on esaver account!

talexuser

I only just opened the KRBS at 1.6 as a standby for later if it is better than anything else when bonuses run out, and yes I've also already got the usual suspects current accounts.

GreenBitterfly

nilrem wrote: »

That is why I now only do fixed rate ISA's I know they are not from everyone but at least they won't cut the rate just after you invest!

It's inevitable that the interest rate got cut, I transferred into the ISA mid-2011, and so nearly got two years out of it at 2.80%, just now I think the interest rate will get reduced again, I'll transfer what little I've got left in there come ISA season.

TattyBear

Have £5k in a Virgin esaver account that I've had in there since the days of Northern Rock. It's only rainy day savings as my main wedge is elsewhere on a long fixed term, but I wouldn't mind some pointers. Also have just short of 5 figures in a fixed term Halifax ISA maturing in May.

So, I'll soon have £13k floating around. I really don't know what to do with it. It's earning sweet FA interest and losing value against inflation, so I can either spend a little bit (car's 11 years old but in good nick), or see if I can scrape a pitiful 2% ISA somewhere for a few years. My main wedge matures next January after 4 years. Currently getting 4.25%. I really thought rates would've gone up a bit by now, but I can't see it happening at all for at least the next 5 years.

I've saved hard all my life for old age despite never having earnt much, and gone without things many people take for granted. It's demoralising to be treated this way by successive governments.

2010

The top "easy access" at the moment is KRBS @ 1.6%, 1.28% after tax.
I did note if you need to withdraw money it`s not so "easy access" as you need to WRITE to them!!!!!!!!!!!!!!!!!!
Not great but better than Virgin`s latest 1.41%.
I`ve just opened one but only to put the minimum amount in until Virgin`s cut comes in at the end of March.
I like Virgin, and at least they have given 58 days notice but if we sit and do nothing it means we accept their "cavalier" behaviour.
As someone has said earlier, we`re treated as no better than a new customer.


The banks, yet again are "at it", greatly encouraged by the government and their cheap lending fund (taxpayers money), which the banks should be giving mortgages from.
BUT, the government has decided that they also want to be a mortgage provider (using taxpayer`s money) and introduced "help to buy".
The BoE DARE not increase rates in case it put`s 200,000 mortgage payers (who have bitten off more than they can chew) on the streets --- homeless --- repossessed!


House builders are building new homes, encouraged by cheap borrowing,and are fleecing new home buyers.
They build ten identical houses side by side, costing the exact amount to build but then release them at weekly intervals --- racking the price up a couple of thousand at a time.
People are getting cheap borrowing BUT are buying £150k homes for £250k.
This is the great Tory recovery program.
Savers take note at the next election.

ColdIron

nilrem wrote: »

I was about to ask that question of "where to"?
I have to agree with you there is little choice at the moment.:)

After a bit of consideration I'm warming to the AA Internet Extra issue 13. It may be a bonus account but it is fixed for a year. I have an endowment ending in a few months and might bag this one now in case there is nothing better around at the time. They may withdraw it for new customers and issue another (they are up to 13 at present) but at least 1.5% is assured for a year. Open online and post a cheque for £1,000, then online easy access. No reason not to keep the Virgin one open with a minimal balance but it might drop again in 6 months

Just thinking aloud

2010

ColdIron wrote: »

After a bit of consideration I'm warming to the AA Internet Extra issue 13. It may be a bonus account but it is fixed for a year. I have an endowment ending in a few months and might bag this one now in case there is nothing better around at the time. They may withdraw it for new customers and issue another (they are up to 13 at present) but at least 1.5% is assured for a year. Open online and post a cheque for £1,000, then online easy access. No reason not to keep the Virgin one open with a minimal balance but it might drop again in 6 months

Just thinking aloud

This is one account that could easily be cut by .25% any time now as it`s been open since 29/11/13.
It now seems to be the trend to outdo each other with cuts in rates rather then the other way round.
The only good thing about this account is at least you can move your money quickly if need be, but to where?


This article explains the current situation.


http://www.dailymail.co.uk/money/saving/article-2547551/Savers-hopes-seeing-rise-rates-dashed-banks.html

Thrugelmir

2010 wrote: »

The BoE DARE not increase rates in case it put`s 200,000 mortgage payers (who have bitten off more than they can chew) on the streets --- homeless --- repossessed!

Catch 22 if no one borrows then demand for deposits will fall. If you would like a higher return then you need to accept a degree of risk on part of your savings.

Inflation is falling. So there's a degree of comfort.

ColdIron

2010 wrote: »

This is one account that could easily be cut by .25% any time now as it`s been open since 29/11/13

Like any variable account, rates could change but this one has a fixed 1.00% bonus for a year. The 0.5% is variable but in practice what they do is withdraw it and announce another issue leaving it untouched, perhaps the word assured was too strong. They do give 60 days notice if there are any changes to the rate so there is plenty of notice. Just widening my options on the easy accessfront

2010

ColdIron wrote: »

Just widening my options on the easy accessfront

And appreciated too.
The more posts that show different rates and theories the better.
Times are hard for savers and likely to remain so for a long time yet.
Opening the odd account or two with the minimum amount and thinking ahead will often pay off.
There`s the AA issue 13 like you said and the KRBS @ 1.6%.
I noticed the KRBS makes it very, very easy to get your money in but harder to get it out.
To withdraw any money you must first WRITE to their head office with the request.

ColdIron

2010 wrote: »

I noticed the KRBS makes it very, very easy to get your money in but harder to get it out.
To withdraw any money you must first WRITE to their head office with the request.

Indeed, that's what I meant by saying KRBS was 'difficult' in my earlier post. I also understand they use offshore call centres which is a small turn off for me

The AA is better but hardly greased lightning, at least it's all online. To deposit you have the option of Direct Debit (3 working days) or a Faster Payment from your linked account quoting a general account number and your account number in the reference. They say it should usually be in the account by the end of the day. To withdraw, again it's by FP, and if they receive your instruction by 3:00 PM it should hit your linked account the same day. They say their FP limit is £100,000

I think it's worth opening before it gets pulled as the current attrition of rates shows no sign of improving anytime soon