The Top Easy Access Savings Discussion Area

Rheumatoid

Rollinghome said:

@RG2015 said:
There is no disputing that this is an error by Ford Money.

Incredible that some banks don't appear to understand the meaning of basic terms such as AER, which are intended to be simple enough for the average saver. And Ford Money isn't the only one.

The shambles that is Renault's RCI Bank still show the gross monthly applied rate for each of the fixed rate accounts I hold with them as "AER Gross".  Is it something to do with making cars?

True. I have given up trying to get them to understand. I have raised complaints and had responses from senior CS who still don't understand. I just ascertained I was getting the correct AER and left it.

jak22

Shawbrook seem to understand the terms https://www.shawbrook.co.uk/direct/savings/personal-savings/easy-access-savings-accounts/
There is one AER which is the standard figure for comparing accounts.
Then there are the Gross rates which is what are actually paid (it's 'Gross' as they're paid without deduction of tax).
For annual interest the Gross rate matches the AER, but for monthly interest it's a little lower.

Kent Reliance have it as a table repeating the AER across the monthly and annual options https://www.kentreliance.co.uk/savings/easy-access-savings-account

But as above https://www.fordmoney.co.uk/savings-products/flexible-saver is anomalous having a single figure for Gross / AER for monthly interest.

allegro120

Wheres_My_Cashback said:

GalacticaActual said:

HSBC are increasing the interest rates on some of their savings accounts on Thursday 20th April 2023.

In particular the Online Bonus Saver is increasing by 0.25% to 3.5% on the first £10,000.

https://www.msn.com/en-gb/money/other/hsbc-reintroduces-200-switch-offer-and-increases-interest-rates-on-savings-accounts/ar-AA19XLpE?ocid=msedgntp&cvid=5ff01fdce4094feb8cd07182eb202822&ei=7

Remember the rate is only applicable if you do not make a withdrawal so only withdraw on the 1st and remove all funds/close otherwise you'll get a much lower rate.

That's why I will give this offer a miss.  Tandem pays the same rate without any extra hassle.

Band7

allegro120 said:

Wheres_My_Cashback said:

GalacticaActual said:

HSBC are increasing the interest rates on some of their savings accounts on Thursday 20th April 2023.

In particular the Online Bonus Saver is increasing by 0.25% to 3.5% on the first £10,000.

https://www.msn.com/en-gb/money/other/hsbc-reintroduces-200-switch-offer-and-increases-interest-rates-on-savings-accounts/ar-AA19XLpE?ocid=msedgntp&cvid=5ff01fdce4094feb8cd07182eb202822&ei=7

Remember the rate is only applicable if you do not make a withdrawal so only withdraw on the 1st and remove all funds/close otherwise you'll get a much lower rate.

That's why I will give this offer a miss.  Tandem pays the same rate without any extra hassle.

Watch out for your Tandem bonus uplift to expire though. Mine runs until 19 Jan 2024 only.

allegro120

Band7 said:

allegro120 said:

Wheres_My_Cashback said:

GalacticaActual said:

HSBC are increasing the interest rates on some of their savings accounts on Thursday 20th April 2023.

In particular the Online Bonus Saver is increasing by 0.25% to 3.5% on the first £10,000.

https://www.msn.com/en-gb/money/other/hsbc-reintroduces-200-switch-offer-and-increases-interest-rates-on-savings-accounts/ar-AA19XLpE?ocid=msedgntp&cvid=5ff01fdce4094feb8cd07182eb202822&ei=7

Remember the rate is only applicable if you do not make a withdrawal so only withdraw on the 1st and remove all funds/close otherwise you'll get a much lower rate.

That's why I will give this offer a miss.  Tandem pays the same rate without any extra hassle.

Watch out for your Tandem bonus uplift to expire though. Mine runs until 19 Jan 2024 only.

If it expires on anniversary mine will run out on 7th Feb 2024. It's long way to go. Things changing so fast these days, I've been in and out of Tandem few times within last two months.  At the moment I keep a small sum there, most of my instant/easy access funds are in Chip.

Eirambler

Inflation still north of 10% today so probably another interest rate rise on the way next month.

OceanSound

Eirambler said:

Inflation still north of 10% today so probably another interest rate rise on the way next month.

Fell slightly but still on the wrong side of 10.0%

Some sources predicting rate rise likely on 11 May:

https://news.sky.com/story/inflation-news-latest-inflation-expected-to-fall-below-10-for-first-time-in-months-12615118

Eirambler

0.25% increase in May now seen as almost a certainty. Markets have now gone back to pricing in 5% rates by the end of the year.

Having said that, inflation should start to go down more significantly from next month as we'll be past the 12 month anniversary of the first big energy price increase. But we're absolutely miles from the 2% target so further rate rises still looking likely this year.

pecunianonolet

Prices are here to stay, if you not got a decent salary increase, you're screwed for a very long time unless you get a decent promotion or change jobs. 

Having subscribed to the 4.17% Shawbrook 1y ISA might have been a mistake if rates peak up further and further. Will we see 4% easy access by summer?

grumbler

Eirambler said:

But we're absolutely miles from the 2% target so further rate rises still looking likely this year.

Let's say that prices have been rising gradually 12% over the year (1% p.m.), then stopped rising and remain steady.

I.e. ATM annual inflation is 12%, current inflation is 0%. It will take 10 months for annual inflation to drop to 2%.

My point is that 2% is the annual target, that means about 0.17% monthly.