The Top Easy Access Savings Discussion Area

wiseonesomeofthetime

"Inflation in the UK dropped to 7.9% in the year to June from 8.7% in May, according to the Office for National Statistics." - BBC

Let's see what effect that has on decision making at the next BoE interest rate meeting in a few weeks' time.

Section62

Emails now arriving from Ford Money confirming the Flexible Saver increase to 4.35% (gross, annual) effective today.

boingy

wiseonesomeofthetime said:

"Inflation in the UK dropped to 7.9% in the year to June from 8.7% in May, according to the Office for National Statistics." - BBC

Let's see what effect that has on decision making at the next BoE interest rate meeting in a few weeks' time.

Slightly better than predicted but still stubbornly high. I think it will split the BoE committee but they'll still go for an increase, probably 0.25%.

cheesemason

wiseonesomeofthetime said:

"Inflation in the UK dropped to 7.9% in the year to June from 8.7% in May, according to the Office for National Statistics." - BBC

Let's see what effect that has on decision making at the next BoE interest rate meeting in a few weeks' time.

More likely to be a 0.25% rise now you would think. And we may not see much movement in savers rates until then as banks take stock

MichaelAP

With Chip; what happens when your linked bank is approaching the end of its connection. In other words, to maintain connection what must be done?

Bigwheels1111

MichaelAP said:

With Chip; what happens when your linked bank is approaching the end of its connection. In other words, to maintain connection what must be done?

I will let you know in a few days when mine ends.

Did not make any difference with Tandem.

TisMeBill

MichaelAP said

With Chip; what happens when your linked bank is approaching the end of its connection. In other words, to maintain connection what must be done?

They notify you it needs re-linking.

bertsilver

4justice2 said:

Ford up to 4.35% annual, 4.27% monthly from today. Not had the email but shows on app.

Its not bad but I'm moving from Ford, far to long for deposits and withdrawals.

TiVo_Lad

TiVo_Lad said:

[Deleted User] said:

TiVo_Lad said:

The money arrives very quickly, but it's in status pending subject to verification of the sending account. Whether this is because it's my first deposit and they do a manual verification, or this is standard practice for all deposits I can't say.

Ah - so this is where the interest only accruing on day 2 comes from? Or did someone refute that above.

Possibly. The initial deposit generated this instant secure message:

Dear TiVo_Lad,
Your DF Capital Savings Account - Initial Deposit Received
Account number: XXXXXXXX
This is to let you know that we’ve received and are processing your initial deposit for your Easy Access Account.
The interest rate on this account is 4.55% AER.
Please note, all payments are matched against your nominated account details when they are applied to your Savings account. We will contact you within 2 working days if we are unable to match the payment details. You may be asked to provide proof of bank account or the funds could be returned.

It suggests they always do a verification but maybe the intitial deposit triggers a more manual process?

Quick follow up. The deposit that I sent yesterday cleared whatever verification process DF Capital had. It's no longer showing as Pending and has been fully credited, dated yesterday (the date the deposit was sent). So it suggests in normal operation deposits are received and credited the same day.

cwep2

boingy said:

wiseonesomeofthetime said:

"Inflation in the UK dropped to 7.9% in the year to June from 8.7% in May, according to the Office for National Statistics." - BBC

Let's see what effect that has on decision making at the next BoE interest rate meeting in a few weeks' time.

Slightly better than predicted but still stubbornly high. I think it will split the BoE committee but they'll still go for an increase, probably 0.25%.

Inflation still way above target. Before this data market was pricing either 0.25% or 0.50% with the latter much more likely. I would be gobsmacked if they don't hike by 0.25%, but think any more is very unlikely now.

This is the first piece of good news - previous readings had seen headline inflation fall but core inflation still increasing, this time core inflation fell (unexpectedly) but it is still 6.9% and remember this doesn't include food or energy (or rent/mortgage payments) so they still need to keep rates high and this is only one piece of data, we have two more CPI readings before the September BoE meeting so if they don't raise rates on 3rd August there could be egg on their faces if the next CPI readings are high. If they get 3 benign readings in a row then no change in September is fine rather than having to course correct for not raising rates in August and adding another 0.5%. There has (justifiably IMHO) been a lot of criticism that the BoE were too slow to react and raise rates at the start of the hiking cycle, which means they have to raise them higher at the end so they will want to avoid that situation as well.

The committee will absolutely be split, there are 2 voters (Dhingra and Tenreyro) who have voted against raising rates since December 2022 when rates were 3%, so I would expect a vote of 7-2 as the previous four meetings, but we may get one or two members (Mann?) voting for a bigger increase.

Either way gilt yields are down quite a bit today so we may have seen the peak in fixes, and it is possible that August is the peak in the Bank Rate for the UK.