The Top Easy Access Savings Discussion Area

tejer

Moggles wrote: »

That's probably because the fixed-rate term accounts were not launched until
Thursday 22 May.

Oh thanks Moggles. I hadn't spotted that.
Anyone have thoughts on the Nigerian bank ?

Moggles_2

tejer wrote: »

Anyone have thoughts on the Nigerian bank ?

There's not been much feedback on this board. Its instant access offering has been over-shadowed by new entrant Kaupthing Edge, which launched a better-paying, easy-access account (monthly 6.31% gross/6.5% AER) on 2 February 2008.

tejer

Moggles wrote: »

There's not been much feedback on this board. Its instant access offering has been over-shadowed by new entrant Kaupthing Edge, which launched a better-paying, easy-access account (monthly 6.31% gross/6.5% AER) on 2 February 2008.

Well Kaupthing Edge offer 6.86% on their fixed term and First Save offer 7.1%. I have read cautionary articles about KE, including the Moody rating.
Moneybox on BBC yesterday also featured a guest who advised caution in the Icelandic banks, suggesting that if an interest rate offer looked too good to be true, maybe it was! The Nigerian 'First Save' looks even more too good to be true!
I think I'll 'watch this space' for now.
Interested to hear what others think.
tejer

isofa

The media are constantly trying to kick the Icelandic Banks, take it with a pinch of salt IMO.

Moggles_2

tejer wrote: »

Well Kaupthing Edge offer 6.86% on their fixed term and First Save offer 7.1%...

MSEs viewing this thread are more interested in instant access accounts, so you may get replies more quickly, if you post again on the main Savings & Investment board.

FWIW, I have savings in IceSave's one year fixed-term a/c (monthly 6.79% gross/7.01% AER) and Kaupthingy's easy access a/c (monthly 6.31% gross/6.5% AER). Like you, I wouldn't save more than £35,000 with any one institution.

tejer

Moggles wrote: »

There's not been much feedback on this board. Its instant access offering has been over-shadowed by new entrant Kaupthing Edge, which launched a better-paying, easy-access account (monthly 6.31% gross/6.5% AER) on 2 February 2008.

Oh OK Moggles, have done. Thanks.
Apologies for posting in wrong thread everyone

stphnstevey

I was interested in Martin's tip this week about NS&I - how does he get the interest rate of 8.17%? Can anyone post the math?


Inflation Beating Guarantee:

The rate at which prices increase is called inflation. NS&I, the government backed savings organisation, has 3 and 5 year Index Linked Savings offering to pay 0.7% more than inflation. It uses the higher measure, Retail Prices Index (RPI) inflation, at 4.2%, meaning it pays 4.9% overall.

The big bonus is that these savings are totally tax-free, meaning it could be a winner for higher-rate taxpayers. Anyone on basic rate tax would have to be earning 6.13% in a normal savings account to match this, while higher rate taxpayers would need a huge 8.17% to beat it.

However, the cash must be left there for at least three years, and at least £100 must be deposited, so it's not for those who want a short term place to save. And if inflation drops, its relative performance could drop too. Yet as it's guaranteed to be higher than inflation and tax free, at least you know your money will always grow quicker than prices will rise.

Mr._H_2

stphnstevey wrote: »

I was interested in Martin's tip this week about NS&I - how does he get the interest rate of 8.17%? Can anyone post the math?

The 8.17% only applies to higher-rate tax payers, and represents the rate that a "normal" savings account would have to pay in order to match the interest from NS&I.

The NS&I interest is tax-free. The tax a higher-rate tax payer would pay on a "normal" savings account is 40%. In other words, a higher-rate taxpayer only gets 60% of the advertised interest of a "normal" account, after tax.

So, if a normal account pays 8.17%, a higher-rate tax payer after tax would receive 60% of 8.17% which is 0.6 * 0.0817 = 0.04902 = 4.902%, i.e., the same as the NS&I interest rate, which is tax free.

To work it from the other way, you take the interest rate that the NS&I pays, and divide by the proportion of interest that you would receive after tax on a "normal" savings account.

For basic-rate tax payers: 0.049/0.8 = 6.125%
For higher-rate tax payers: 0.049/0.6 = 8.1666667%

Hope that makes sense for you!

ncb123

Have just applied for an online saver account with the Birmingham Midshires. Not put in any money as yet and was rather taken aback by the clause I found in their terms;

'We may limit the amount which may be withdrawn from or paid into your account if we think that it is necessary in order to protect our business interests as a whole, or to comply with any court order, legal requirement or request from a regulator to which we are subject.'

So basically if there was a run, like on NRock, they could stop people getting their money yes. It gives them carte blanche to hang onto your money for whatever reason they might choose actually.

Would appreciate some feedback on this as I am not sure I'm happy to proceed with the application now.

JimmyTheWig

ncb123 wrote: »

'We may limit the amount which may be withdrawn from or paid into your account if we think that it is necessary in order to protect our business interests as a whole, or to comply with any court order, legal requirement or request from a regulator to which we are subject.'

Blimey!
I wonder if they'd accept the same conditions on a loan? (I.e. I may limit the amount I pay back if necessary...)