The Top Easy Access Savings Discussion Area

Bridlington1

AmityNeon said:

It's funny seeing notices of rate increases for a future effective date, only to have those accounts withdrawn (just) before the date comes around. It's like being too big for your britches, biting off more than you can chew, which makes me start to wonder whether standard Easy Access accounts will even go above 3% any time soon. I'm glad I kept my Zopa treadmill going for 3.26%

It just leaves me glad I keep opening mediocre savings accounts with £1 in them. I've had this happen quite a lot recently, where  I open an account then a few weeks later the interest rate jumps and the account gets pulled. Cambridge, Paragon and now Coventry have done this to me in the last few months.

AmityNeon

phillw said:

AmityNeon said:

It's funny seeing notices of rate increases for a future effective date, only to have those accounts withdrawn (just) before the date comes around. It's like being too big for your britches, biting off more than you can chew, which makes me start to wonder whether standard Easy Access accounts will even go above 3% any time soon. I'm glad I kept my Zopa treadmill going for 3.26%

It sounds about right, announce ahead of time that you're going to increase interest rates to prevent an outflow of cash but pull the account shortly before the rate rise to avoid the meltdown of a sudden inflow of cash.

What I'm surprised about is that we got to hear that the accounts were going to be pulled.

A rate increase implies the current rate is suboptimal, so for me, announcements of rate increases do nothing to prevent outflows of cash (because my cash was never there to begin with). It's also likely that notice of a significant rate increase attracts a sudden influx of deposits so the accounts are withdrawn earlier than anticipated, like the First Home Saver (whose withdrawal we were also notified of just prior to it being pulled).

It's more impressive to me, and a sign of true increase, when a provider just releases a top rate unannounced and holds steady, even more so when it's an Easy Access account available to all. A big bank like Santander had to retreat after its rate-leading 2.75% eSaver was only available for eight days, selling out 12 days sooner than its initially forecast withdrawal date. Cynergy's 2.75% also didn't last very long. Gatehouse then quickly took the lead with 2.8% followed hours later by Al Rayan with 2.85%; Gatehouse withdrew soon after, but Al Rayan stayed at the top for two months. Zopa then quietly bumped up their instant access rate to 2.86% and has held steady for three weeks.

These publicised notices of future rate increases for Limited Access accounts, coinciding with news of BoE base rate rises... they're just a bunch of hot air. Understandable, with purpose, but still funny.

phillw

AmityNeon said:
A rate increase implies the current rate is suboptimal, so for me, announcements of rate increases do nothing to prevent outflows of cash (because my cash was never there to begin with).

You have money in bank A, which is the highest rate, bank B announces a higher rate, bank A announces a higher rate in a few weeks.

Most people will save themselves the hassle and leave the money in bank A as the difference in a few weeks of interest doesn't justify their time.

The banks aren't trying to impress you.

happybagger

Bridlington1 said:

I would argue that there is inconsistency between the product terms and the general terms, thus the product terms hold.

Ok, but I would say they are more "complementary" rather than inconsistent.

And in any case, with it being a building society they can repay the share at will, terminating the membership (Rule 6)

Ether way it's academic as you've closed it anyway

AmityNeon

phillw said:

AmityNeon said:
A rate increase implies the current rate is suboptimal, so for me, announcements of rate increases do nothing to prevent outflows of cash (because my cash was never there to begin with).

The banks aren't trying to impress you.

I never said they should. I'm just a rate tart making observations.

TiVo_Lad

If you are to believe a recent blog posting by Paragon Bank, the rate tart is a rare breed indeed:

"...Paragon analysis of September's [2022] CACI data found that 82% of all non-ISA instant access savings accounts were receiving less than 0.5% interest. This equates to over £482 billion of deposits receiving a return far lower than they could be..."

Which may well explain why so many financial institutions don't rush to release market-leading rates.

andyhicks88

I just deposited some funds into the Cov 6 access account, is this likely to not show up now until Monday? 

Bigwheels1111

andyhicks88 said:

I just deposited some funds into the Cov 6 access account, is this likely to not show up now until Monday? 

Mover some cash over at 16.30pm today.
Was in my account 15 minutes later, not sure about after 17.00pm.

andyhicks88

It's gone in but at the same time as i checked that I also noticed the interest rate is saying 2.42% and not the 3.25% it was supposed to jump to today? I opened this account last week so I shouldn't have missed the boat?

Bridlington1

TiVo_Lad said:

If you are to believe a recent blog posting by Paragon Bank, the rate tart is a rare breed indeed:

"...Paragon analysis of September's [2022] CACI data found that 82% of all non-ISA instant access savings accounts were receiving less than 0.5% interest. This equates to over £482 billion of deposits receiving a return far lower than they could be..."

Which may well explain why so many financial institutions don't rush to release market-leading rates.

I am very much a financial tart and glad of it. In fact if anything I rather enjoy it. If the rate tart is a rare breed then thank heavens I'm in the minority.