Exiting Fixed Term Savings

Herbalus

RG2015 wrote: »

It sounds like you are defending HSBC and I cannot understand why anyone on this board would want to do this.

Less defending HSBC, more understanding that with the strength of their balance sheet and base of deposits, they do not need to attract huge amounts of savings. There's no inclination to attack HSBC for poor rates because it's probably what we expect.

Also, I don't think it's important which adjective they use to describe the rate. My own view is that the consumer has ample capacity to ignore the marketing speak. Hence my 'defending' is simply that I'm not bothered by it, look at the rates to make to my own decisions, and then walk on by.

eskbanker

RG2015 wrote: »

It sounds like you are defending HSBC and I cannot understand why anyone on this board would want to do this.

I cannot understand why someone challenging a poster's line of argument is then characterised as defending what they're arguing against!

The same came up on one of the TSB threads this week, where, by highlighting some absurdity in one of the rants against the bank, I was then similarly incorrectly accused of defending TSB, a pretty bizarre leap of logic.

IMHO it should be recognised that many issues aren't binary black or white ones and that there's room on a message board for adult discussion on all the possibilities in between....

RG2015

eskbanker, Herbalus and jimjames,

Thank you for your replies which are much appreciated. They are all very informative and as ever I am grateful to learn by listening to the opinions of others.

I have in the past found myself in a minority of one for example on the issue of banks paying people to switch a bank account. Likewise here I could not in good conscience accept a bank promoting 0.70% as being a great rate when 2.31% is available elsewhere. It is though just my opinion and it just surprises me that as yet no one has agreed with me. But that is not really important and as ever, Caveat Emptor is the key watchword.

I do also hope that this can be regarded as an adult contribution to my own debate.

And last but not least, I must apologise to mkean64 for taking the thread off at a tangent.

eskbanker

RG2015 wrote: »

I could not in good conscience accept a bank promoting 0.70% as being a great rate when 2.31% is available elsewhere. It is though just my opinion and it just surprises me that as yet no one has agreed with me.

For what it's worth I agree with you that 0.7% isn't a great rate relative to the competition, and I imagine that most on here would say the same, especially given the prevalence of reasonably savvy posters who know the best rates and how to achieve them.

Having said that, it still doesn't mean that someone pointing out that a decent (percentage-based) margin over base rate could be construed as great against historical norms is defending the bank though, especially when posted in what I understood to be a tongue-in-cheek manner (albeit this can be difficult to divine from the written word)!

jimjames

RG2015 wrote: »

But these are not "normal" times as regards interest rates.

RCI are offering 2.31% for their fixed three year bond. Therefore, for £10,000 HSBC would pay £70 per year and RCI would pay £231.

It sounds like you are defending HSBC and I cannot understand why anyone on this board would want to do this.

I certainly wouldn't say it was a market leading rate - that would be incorrect which is probably why they don't claim it. But it's higher, substantially higher, than many other bank rates. Banks can offer whatever rates they want really, I think it's crazy that so many people are happy to settle for them. Switching to a better rate would be an action that would make them do something.

I wouldn't even bother with 2.31% to be honest, 3% to 5% are decent rates for me and I don't need cash beyond the amounts those accounts will hold

RG2015

jimjames wrote: »

I certainly wouldn't say it was a market leading rate - that would be incorrect which is probably why they don't claim it. But it's higher, substantially higher, than many other bank rates.

I would be surprised if there any other 3 year fixed rate savings accounts offering substantially less than 0.70%. It is not really relevant to compare this with shorter term or instant access savings accounts.

Peelerfart

An alternative perspective could be that 0.7% Is a great rate.

Just not for the customer