The Top Easy Access Savings Discussion Area

cricidmuslibale

nottsphil said:

cricidmuslibale said:

Is it too much to hope for, do you all think, for more of the top easy access savings rates to increase slightly to at least equal the present Bank of England base rate of 2.25% before the B of E next meets in early November? It would only require at most c. a 0.25% increase for quite a few savings providers to reach this 2.25% level. (Obviously I'm fully aware that Yorkshire BS and Al Rayan, for example, have already exceeded this interest rate with certain savings accounts.)

It just doesn't quite feel right to me at least when top easy access savings rates are generally paying a lower rate of interest than the current Bank of England base rate. Perhaps I'm being a little unrealistic though, in which case I accept that.

It doesn't sit well with me either but we have to accept that lenders set rates in accordance with what they expect to loan out. With mortgages set to become less affordable, this  means less demand for our money - unless their other sources of funds become too expensive.

Yes, I can see exactly what you’re saying here. This also hints at why savers have had to put up with interest rates that have been considerably lower than they really should have been in recent years, thanks at least in part to quantitative easing and Government schemes such as Funding for Lending removing the need for banks etc to rely on savers’ deposits as a source of funds to then lend out to businesses, individuals etc.

Daliah

cricidmuslibale said:

Yes, I can see exactly what you’re saying here. This also hints at why savers have had to put up with interest rates that have been considerably lower than they really should have been in recent years, also thanks at least in part to quantitative easing and Government schemes such as Funding for Lending removing the need for banks etc to rely on savers’ deposits as a source of funds to then lend out to businesses, individuals etc.

Same Q to you: What other sustainable business model would you expect a bank / building society to have?

NB. Perhaps a subject for a separate thread, so this one can be reserved for the top easy access savings accounts

soulsaver

Bridlington1 said:

Tipton & Coseley BS have launched a limited access account at 2% for £100 to £25k and 2.25% for £25k+.

Thanks @Bridlington1
It appears to be Postal/Branch application and management, and only viewable (not manageable) by app?

"You can pay money in or draw money out at any of our branch offices or through the post."

If that's correct, whilst it's very valid info - especially if you live near a branch, I'm not sure that fits many of our views of a top Easy Access other than the rate >£25k? 

cricidmuslibale

Daliah said:

cricidmuslibale said:

Yes, I can see exactly what you’re saying here. This also hints at why savers have had to put up with interest rates that have been considerably lower than they really should have been in recent years, also thanks at least in part to quantitative easing and Government schemes such as Funding for Lending removing the need for banks etc to rely on savers’ deposits as a source of funds to then lend out to businesses, individuals etc.

Same Q to you: What other sustainable business model would you expect a bank / building society to have?

NB. Perhaps a subject for a separate thread, so this one can be reserved for the top easy access savings accounts

I will answer the above question as concisely as possible so as not to derail this thread:

I would not expect of any banks / building societies that they make fundamental changes to their present business models. My issue is really with the Government, when it steps in to halt the usual reliance of banks / building societies on savers’ deposits as a source of funds for lending to individuals and businesses, through short sighted initiatives such as Funding for Lending; the natural effects of which are to further depress savings interest rates in an already low interest rate environment.

It is little wonder that, up until fairly recently, savings rates have been so poor for so many years when a Government is doing its very best to interfere with and greatly reduce the natural flow of funding to banks / building societies from the deposits of private citizens like you and me!

nottsphil

Daliah said:

nottsphil said:

It doesn't sit well with me either but we have to accept that lenders set rates in accordance with what they expect to loan out. 

What other sustainable business model would you expect a bank / building society to have?

You sound like my old A level economics teacher! I'm too tired at the moment think of what you're getting at so I'll have a ponder tomorrow.

[Deleted User]

It's all a bit daft at the moment. If somebody brings out a product tomorrow, easy access, 5%, monthly interest, no hoops to jump, they'll be inundated with money. (they'll certainly get mine) However, if next week another provider does the same but at 6% the first provider will lose it all again (They'd certainly lose mine) so how can a provider get the amount of money they require and keep it? A loyalty bonus is the only way I can see.

jimexbox

Deleted_User said:

It's all a bit daft at the moment. If somebody brings out a product tomorrow, easy access, 5%, monthly interest, no hoops to jump, they'll be inundated with money. (they'll certainly get mine) However, if next week another provider does the same but at 6% the first provider will lose it all again (They'd certainly lose mine) so how can a provider get the amount of money they require and keep it? A loyalty bonus is the only way I can see.

The only accounts that will pay 5% will be one year fixes. Once your money is in, that's it for a year.

Nick_C

.... plus the loss leaders and marketing gimmicks.  I've got just short of £9k getting 5% with access should I need it

chris_the_bee

Nick_C said:

.... plus the loss leaders and marketing gimmicks.  I've got just short of £9k getting 5% with access should I need it

Where are you getting 5%?

Nick_C

Barclays (£5k), YBS Regular Saver, Cambridge BS Regular Saver (no longer available).