Virgin reduces rate on esaver account!

2010

Thrugelmir wrote: »

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.

People are borrowing but at rock bottom rates given by the government with taxpayers money.
The traditional mortgage providers, banks and building societies have been given dirt cheap taxpayers money with the fund for lending so they don`t need saver`s money.
This, in effect, is the market being manipulated by the government.

People in retirement who rely on their savings for a monthly income are seeing their living standards being cut deliberately by government policy.
These people cannot or dare not take the high risk of stocks and shares and lose any capital.

What we`ll end up with very soon is nobody will bother saving but just be up to their eyeballs in debt.
The dinner party conversation won`t be about how much your house is worth anymore but how much debt you have.
The more you have, the better you`ll be looked upon.
Debt is the new status symbol encouraged by the government and the BoE.

The only difference between the 2008 financial crisis caused by the banks (the government really because of loose regulation)the next one will be caused by the government with cheap borrowing policies.

2010

ColdIron wrote: »

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

In theory you could open one with £1k and then withdraw £999 (cutting the rate to .5%) until you`re ready to put a big amount in and then the rate would go back up to 1.5%.
Is that how you read it?


BTW who owns/runs the AA money side of it.

ColdIron

2010 wrote: »

In theory you could open one with £1k and then withdraw £999 (cutting the rate to .5%) until you`re ready to put a big amount in and then the rate would go back up to 1.5%.
Is that how you read it?

BTW who owns/runs the AA money side of it.

Yes, that's what I'm planning on doing. CS confirmed that it's OK. No point in using it until Virgin drops at the end of March

Bank of Scotland plc hold their deposit licence along with BM Savings, IF, Halifax and Saga

retiree

You may need to move quickly if you want the AA internet account. The similar account with sister brand Birmingham Midshires has been closed to new applicants in recent days.

ColdIron

retiree wrote: »

You may need to move quickly if you want the AA internet account. The similar account with sister brand Birmingham Midshires has been closed to new applicants in recent days.

Cheers, applied today

jimjames

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.:)

There seems to be a fair choice and reasonable rates for the average saver at the moment.

You can get 5%/4%/3% on various accounts that would cover the savings and more of the average person. Admittedly not in ISAs but 5% taxed is still way better than 1.5% tax free.

I know it doesn't work for big sums but should those be kept in cash long term? I think we are all well above average with savings balances here so probably skews our thinking but the savings rates for someone on average income are not as bad as often made out.

talexuser

I also just applied to the Nationwide 1.7% because apparently I've had 100 quid in there for more than 15 years. Another one where you can BACS money in but only withdraw to another Nationwide account, hopefully one where you can then transfer to your bank easily! Do you get the impression they don't want to make it very easy to withdraw? I notice the "instant access" tag has changed to "easy access" to get round the trades description act.

My Yorkshire internet saver is still 1.5% which is a good rate for a Society that has not reduced it too much for "loyal" savers over a long period of time. However new people don't get that, so maybe it's due for a cut?

bigadaj

talexuser wrote: »

I also just applied to the Nationwide 1.7% because apparently I've had 100 quid in there for more than 15 years. Another one where you can BACS money in but only withdraw to another Nationwide account, hopefully one where you can then transfer to your bank easily! Do you get the impression they don't want to make it very easy to withdraw? I notice the "instant access" tag has changed to "easy access" to get round the trades description act.

My Yorkshire internet saver is still 1.5% which is a good rate for a Society that has not reduced it too much for "loyal" savers over a long period of time. However new people don't get that, so maybe it's due for a cut?

My maturing accounts are generally being offered at rates above those of the general market though obviously above the open market rates, 2% seems typical currently.

I presume this is less an indication of value of customers or reward for savers but is just an easy mechanism for managing deposits they already have.

talexuser

Details please?

2010

talexuser wrote: »

Details please?

Of the Nationwide 1.7%,
Is this linked to a current flexi account?