The Top Easy Access Savings Discussion Area

Bridlington1

Newcastle triple access saver now pays 2.75%. I know it's not the best rate but it may be of use to some. See:
https://www.newcastle.co.uk/savings/easy-access-accounts/newcastle-triple-access-saver-issue-4

mebu60

I have just looked at Gatehouse website as their EA at 2.8% is now my lowest payer following Sainsbury's' and Cynergy's increases this week. Says product is 'under review'. I won't rush to transfer anything out from them just yet though clearly it was my withdrawal from Cynergy (reduced to £1) at the start of the week following YBS's move that triggered their rate hike! Come on Gatehouse, you know you want to! 

Whilst both Sainsbury's and Cynergy have required opening new accounts which is a bit of a faff, interest accumulated YTD is now part of the capital :-)

Malchester

mebu60 said:

I have just looked at Gatehouse website as their EA at 2.8% is now my lowest payer following Sainsbury's' and Cynergy's increases this week. Says product is 'under review'. I won't rush to transfer anything out from them just yet though clearly it was my withdrawal from Cynergy (reduced to £1) at the start of the week following YBS's move that triggered their rate hike! Come on Gatehouse, you know you want to! 

Whilst both Sainsbury's and Cynergy have required opening new accounts which is a bit of a faff, interest accumulated YTD is now part of the capital :-)

I also have this account and it has been under review for a few months now. I moved some money out to Zopa but I do like Gatehouse and have sympathy with their ethos. Their customer service has always been good in my experience. As to whether they will increase the rate I am not sure, especially as the account is no longer available.

MiserlyMartin

These instant access saver rates are all appalling when the base rate is 3.5%. Back in the day, not very long ago you would be getting base rate plus 1% or more.

TiVo_Lad

MiserlyMartin said:

These instant access saver rates are all appalling when the base rate is 3.5%. Back in the day, not very long ago you would be getting base rate plus 1% or more.

You need to consider the wider context. A savings account is essentially a loan to a financial institution. You lend them your money and they pay you interest. You get a low(er) rate because the loan is flexible in an instant access account; you can withdraw the loan at any time (take out your savings) so the financial institution has to go and replace that money elsewhere. That costs them money. Rates are higher for a fix because your money can't usually be pulled (at least without a penalty).

Financial institutions borrow money to do something with it; usually lend it to other people, buy assets, invest in things etc. If the demand for "doing stuff" is reduced, the demand for money is lower. Financial institutions don't want to be awash with cash and aren't able to spend it. So they make themselves less attractive by keeping their rates lower than others. This keeps the system in reasonable balance.

Right now we have a softening housing market, people are reigning in their spending because of the cost of living crisis, there's a potential recession on the horizon etc all which dampens the demand for "borrowing" from financial institutions, so they don't need to attract cash in the door by raising savings rates. The BoE might be raising rates but they're the lender of last resort; they can charge more, but if you can get the cash somewhere else (e.g. savers) at a lower rate than the BoE, you will.

Right now there isn't a massive need for your savings, so the rates are low.

pecunianonolet

And compared to the Euro zone we're in a good place interest wise. Just opened a Euro easy access account the other day in a Euro country and the introductory rate is 1.5% for 3 months, and 1% after. That is well below the ECB rate of 2.5%

2010

Thought I saw somewhere about Charter changing rates on Monday.
Anyone know?

BestSeagull

2010 said:

Thought I saw somewhere about Charter changing rates on Monday.
Anyone know?

I have Charter easy access issue 28 and got the email saying 3% on the 23rd.

2010

BestSeagull said:

2010 said:

Thought I saw somewhere about Charter changing rates on Monday.
Anyone know?

I have Charter easy access issue 28 and got the email saying 3% on the 23rd.

Thanks for that.
I see they are on issue 31 at the moment.
Have they been increasing your rate on issue 28 when new issues come out?

jaypers

2010 said:

Thought I saw somewhere about Charter changing rates on Monday.
Anyone know?

I did post this a few days ago but I think my post was lost in amongst the incredible amount of posts about Coventry and CHIP. Charter have now updated their documentation. You’ll see that everything up to Issue 29 will increase to 3% from Monday. No change/increase to Issues 30 or 31.
https://s3-eu-west-1.amazonaws.com/pdf.chartersavingsbank.co.uk/01502_savings_interest_summary.pdf