ICICI to launch cash ISA

gt94sss2

You may not think it, but the cost of eye-catching banking advertisements aimed at winning your custom could be seriously taking from your ability to save.

Familiar advertisements such as Lloyds TSB's train animation and Halifax's complex dance routines could be helping to take anything from 1.5%-1.8% from your savings rate, according to ICICI bank, which is planning a push into the UK market in the run-up to Christmas.

The Indian subsidiary, which was established here in 2003, will launch an online cash Isa and loan facility at the end of this month. It hopes to offer table-topping rates on these due to its lack of advertising and branch costs, which it calculates can swipe up to 1.8% off savings and add 0.5% to loan rates.

Anubrata Biswas, the bank's senior retail manager, said: 'The combination of providing branch services together with nationwide advertising, particularly during peak season, can really pull down savings interest rates.

'The cost savings on this, and the savings from using the infrastructure of our parent Indian bank, which serves 23m people, is one of the main reasons why we will be able to make a name for ourselves here. It's all about simple products at market-beating rates.'

The rates on ICICI's new products will be set closer to launch, but the bank told This is Money that cost savings will allow it to offer a cash Isa at around the 6-6.25%.

More here

Regards
Sunil

houmie

I wonder if they would allow transfer in...

Ian_W

The rates on ICICI's new products will be set closer to launch, but the bank told This is Money that cost savings will allow it to offer a cash Isa at around the 6-6.25%.

If you look at kazza's thread* on best buy cash ISAs they're hardly pushing the boat out compared to many of those.
So no advertising, no branch network and no beating Kent Reliance, NS&I, YBS - to name but a few!

*EDIT to add: Which is HERE BTW.

Mikeyorks

An ISA, therefore, in a plain brown re-cycleable paper bag??;) That's my kind of 'wrapper'.

Unfortunately the potential Int rates don't appear to match the advertising hype.

Ian_W

Mikeyorks wrote: »

An ISA, therefore, in a plain brown re-cycleable paper bag??;) That's my kind of 'wrapper'.

Information overload on that one Mike! :eek:

Mikeyorks wrote: »

Unfortunately the potential Int rates don't appear to match the advertising hype.

Shouldn't that be "non-advertising" hype?

houmie

Ian_W wrote: »

If you look at kazza's thread* on best buy cash ISAs they're hardly pushing the boat out compared to many of those.
So no advertising, no branch network and no beating Kent Reliance, NS&I, YBS - to name but a few!

*EDIT to add: Which is HERE BTW.

Hmm it depends. If they would do 6.25% then they would have already beaten Kent Reliance (6.21%). We really have to wait and see. Since their arrival they have beaten every other bank's saving account. Why should they not be the top payer in ISAs then?

wombat42_2

Kent Aliance are Postal ISAs and dont allow transfrers and may not suit many who just like an Interenet account. NS&I at 6.3% will not allow transfers. YBS and B&B are just 6.05%.

So anything above 6.05% from ICICI that allows transfers would be very competeitive.

Ian_W

wombat42 wrote:

Kent Aliance are Postal ISAs and dont allow transfrers

Oh yes they do!

Variable rate mini cash isa's that accept transfers in:
Kent Reliance BS Direct mini cash ISA - 6.21%
Rate guarantee? No. Minimum deposit: £1. Operated via: Post

As regards internet access that is something I find very useful with all my accounts except ISAs, depends how you use them [or not use them in my case]. Just to view a balance that's static apart from when an annual contribution is made or interest is added I can live without.

Don't get me wrong, if ICKY, ICKY come in with a competitive rate that's great as, if nothing else, it will keep the pressure on others to remain up there. However the hype about them being able undercut [or should that be "over-cut"?] others by 1% or more is just that - hype!

ManAtHome

I've never "got it" why you'd need a cash ISA (the last thing you should cash in) to be super-instant-access either Ian. Currently for me - NS&I for new money, KR for old money does the job.