The Top Easy Access Savings Discussion Area

I-LOV-MONEY

My money arrived at the Post Office by the next day. Trouble is I sent it from Santander who sometimes delay payments for security checking (thanks guys!).

I have been unlucky with savings accounts recently!

chipp

ManAtHome wrote: »

Gonna muck up the account name unless they drop rates to 0.1%, 0.2%, and 0.3% though...

What Santander will do with their 123 account, rather than change the rates, will be to pull it for new customers. There may also be something in the small print that allows them to increase the monthly fee.

When they withdraw it from sale they will probably offer something else that will tempt many of their 123 account holders to switch product.

chipp

scgf wrote: »

Lazy web developers at fault!

No, lack of staff who know what they're doing. It's what happens when you follow an aggressive cost-cutting (ie staff cutting) route and don't value those you have left. Peanuts and monkeys.

chipp

Repairman77 wrote: »

they said wait till it runs out and join eSaver v.8 at 2.7%, looked the other day and that's now finished, on eSaver v.9 at just 1.5%

The moral here is to grab it while you can. I know it's cold comfort but what I tend to do with instant access accounts is open a new one with a minimal amount about a month before the rate on the old account is due to plummet, then as soon as the rate on the old one drops, shift the money over if there's nothing better around.

Some banks won't let you have 2 similarly-named accounts open at the same time, but I don't think that appplies to the Santander eSaver.

I-LOV-MONEY

I did the same, and opened a new eSaver account about a week or so before the old rate ended, and moved the money over on the date the old rate expired.

However, whether it was as a result of this, I kept getting 'security checks' on my account and delaying payments. After this happened a few times and several complaints, they eventually gave me £25 (I'm rich!!!). Suppose it is better than a 'kick in the teeth' !!

ManAtHome

chipp wrote: »

What Santander will do with their 123 account, rather than change the rates, will be to pull it for new customers. There may also be something in the small print that allows them to increase the monthly fee.

I reckon they are likely to increase the monthly fee over time (can't see why they'd need any small print though). They could also move the interest cap down, increase the funding requirement, and/or introduce a minimum/average balance - depends how long they want to attract funds.

joncombe

I currently have a Santander eSaver Issue 4 account which pays a little over 3% (3.05% I think) but have the dreaded letter that my bonus rate is ending and that interest will then drop to I think about 1.5%. As most banks these days seem to only pay such rates of interest for 1 year (as a bonus rate) I've got into the habit of moving my savings to another account whenever the bonus rate expires each year. However I'm shocked to see the best rate I can now find is 2.3%. In previous years I've had no trouble finding an account offering a comparable rate. Given the Bank of England base rate hasn't changed in about 3 or 4 years I am surprised rates on savings have dropped by around 0.7%. I presume the greedy banks have decided to take a larger margin?

I've also had an Ulster Bank savings account open for a few years with a 0 balance as I used them previously but withdrew all my money when the rate dropped. I tried to close the account at the time but they wanted me to visit a branch and not living in Ireland that wasn't very easy (it was an online account so I didn't need to visit a branch to open). So I just left it open with 0 balance. However a while back I got a letter that they had put the interest rate up to I think around 3%. So my plan was to move my savings there once my Santander bonus rate ends. Sounds good but then 2 days ago I got a letter that they are also reducing the rate back down again.

Just wondering if the current situation is temporary (I.E. if I wait a few months rates will be better or perhaps after 1st April) or if low 2% ish is likely to be the best rate for some time (at least until the Bank of England rate goes back up)?

I have taken my full cash ISA allowance this year so that is not an option. I suppose I could use my Stocks and Shares ISA allowance but prefer the safety of cash at the moment. I can see from the other posts t this seems to be a common problem so not really expecting a magic solution just curious why the rates are no much lower and if it is likely they will go back up to around 3% ish anytime soon?

badger09

There are several threads discussing the current very low rates offered to savers.

Simplified answer: it has very little to do with the BOE base rate. Because of the government's Funding for Lending Scheme, banks can borrow at 0.75%, on the understanding that they lend money on to small businesses :cool: While they can borrow at that rate, they don't need to offer 3% or anything like it, to savers. The FLS runs to April 2014 (I think) so little prospect of any big improvement in rates for savers before then.

Cash ISA rates might be slightly higher in March April than now, but I wouldn't take that for granted

2010

badger09 wrote: »

The FLS runs to April 2014 (I think) so little prospect of any big improvement in rates for savers before then.
(

Jan 2014 but there`s nothing to say it won`t be extended.

The government don`t want savers, apart from pensions, just spenders.
You could say their theory is to make saving rates so bad that people just go out and spend their money.
The fly in the ointment with that is, the people with the most savings tend to be older and need a monthly income and so need to keep their savings.
The other thing is they have got most material goods and don`t need any more.

VfM4meplse

badger09 wrote: »

There are several threads discussing the current very low rates offered to savers.

Simplified answer: it has very little to do with the BOE base rate. Because of the government's Funding for Lending Scheme, banks can borrow at 0.75%, on the understanding that they lend money on to small businesses :cool: While they can borrow at that rate, they don't need to offer 3% or anything like it, to savers. The FLS runs to April 2014 (I think) so little prospect of any big improvement in rates for savers before then.

Not happy at all with the current situation. I'm looking to move this year, so will need instant access to cash - whilst it feels sinful to have this deposit earning next to nothing, fixed rates don't offer much either. It's a case of opting for nothing, or something risky.

I don't like being punished for trying to be self sufficient.