The Top Easy Access Savings Discussion Area

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.

pecunianonolet

cwep2 said:

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.

- Low energy usage, it is summer after all, and we're not sweating like the central and south of Europe and keep AC on full blast 24/7 so as soon as we hit the dark time and winter, demand will increase and so likely energy prices stay at least at the current level or slightly increase again

- Grain deal with Ukraine/Russia no longer in place and grain prices have already reacted. Top 3 grain importers from Ukraine were China, Netherlands and Turkey. Most of the grain, especially in China, is to feed animals such as pig farms in China.

- Extreme heat across Europe and other parts of the world will have a significant impact on food prices e.g. olive harvest at massive risk in Europe so expect olive oil to increase in price. Grain harvest yields will be down, so bakery items might jump further and since a lot of grain is used to feed animals, meat produce prices will remain high or increase further

- Food safety checks for all food items from EU from October (currently only for non EU imported items). More paperwork, more certificates, more cost. I would be very surprised if importers and supermarkets have already priced this in so expect this to be passed on. Another Brexit gift. 
https://www.bbc.co.uk/news/uk-england-suffolk-65757282
https://www.theguardian.com/politics/2023/jun/26/post-brexit-import-checks-risk-further-pushing-up-food-prices-industry-group

- Record debt and higher interest rates also mean higher interest for repayment of debt, so much less money left for the gov. High inflation usually has a "welcoming effect" for gov to get rid of debt easier but much less effect in the UK due to many gilts having short terms. Gilt experts may be able t explain in more detail.

- 3 by elections this week, depending on result increased pressure for a GE sooner. Because of the point before, no budget left for tax reduction gifts to attract voters. Autumn budget will be interesting, expect higher taxes.

So the inflation number will come down as it is a comparison to 12 months ago, hence an easy but rather meaningless promise by the gov to say they half inflation. The high prices are here to stay and the pressure on households won't go away, it will just be a little less painful for many.