The Top Easy Access Savings Discussion Area

Section62

Freebird53 said:

I wonder If / how long it will take AR to respond?

On another note, this Easy Access thing is a bit of a mystery to me.

I can see how a bank offering a fixed term gives them the security to lend/invest, but EA accounts?

Once their EA rate is uncompetitive people will surely take their money elsewhere....?

It wouldn't surprise me if Santander were banking on that happening, to limit the longer-term cost of being at the top of the table over the next 'x' days.

In the meantime - if this forum is in any way indicative - there are lots of new and lapsed customers of Santander busy opening accounts and some of those no doubt will be looking at current accounts and other products.  Current Account switching incentives aren't the only way of getting yourself talked about and processing a glut of new customers.

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Millyonare said:

t1redmonkey said:

Millyonare said:

Just a note of caution, among the giddy excitement of soaring Santander interest rates.

Santander UK reported publicly this week that its "bad debts" are now rising.

For me, I'll be keeping my savings there under the £85k UK govt protection threshold.

They're trying to create a bigger buffer for the potential of increased defaults in the coming months/years due to rising interest rates making it harder for customers to make scheduled payments.  I think that's a sensible thing for them to do, nothing to panic over really.  But yes, I would never go over £85k personally because you never know.

Never mentioned panic.

Although, it is a recurring theme. Don't panic about Brexit... oh. Don't panic about Covid... oh. Don't panic about the pound... oh. Don't panic about pensions going bust... oh. Don't panic about banks... let's see.

How can you forget to mention the toilet rolls...

Section62

Millyonare said:

Just a note of caution, among the giddy excitement of soaring Santander interest rates.

Santander UK reported publicly this week that its "bad debts" are now rising.

For me, I'll be keeping my savings there under the £85k UK govt protection threshold.

It isn't UK government protection.

If you are really concerned about Santander UK's "bad debts" then shouldn't you also be concerned about FSCS failing too?

In reality it makes sense to keep under the £85k figure (unless the special temporary circumstances apply) but nobody should seriously expect Santander to be at imminent risk of failure just because they are offering a temporary promotional interest rate.  Likewise with Barclays offering their super-giddying 5%.

There's a fine line between a note of caution and scaremongering.

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Some people may ask why don’t you guess a 1% rise. Well I say this, the BoE is supposedly independent from political interference.

1% is a symbolic number, unprecedented in recent history and 1% will resonate more with people who have mortgages (they need to be protected somehow) and of course cash savers ( the government want you to spend it rather then hoarding it)

Ha, what a dilemma for the government BoE.

 

Speaking of history, the RAF had just rustled up 1000 bombers to hit a German city for six. Well, the cockneys reading their morning newspaper, the headline and the impact wouldn’t have the save effect if the number was 950 bombers that just hit a German city. Do you see my point...

sonaldo

re the new Santander account, i believe you can choose to be paid interest monthly. if i were to pay in say £100 on 1 Nov, would the interest paid for Nov account for that? i can't seem to work it out from the docs they provide

andyhicks88

t1redmonkey said:

andyhicks88 said:

2010 said:

andyhicks88 said:

2010 said:

andyhicks88 said:

I signed up yesterday for the Santander account, as I haven't had an account with them before it looks like I've got to wait "5 - 7 days" for new online banking set up details to arrive in the post before I can access the account properly, which is fine, but hopefully the stuff gets here within the next few days.

Yea, but by then someone else will be top of the savings list and everyone will be jumping again.
Since Chase appeared on the scene there`s been a constant procession of top easy access saving accounts.
We`ve gone from 1.5%  to (currently, maybe) 2.75%.
It would be interesting to find out if anyone on here has actually moved every time a new top rate came out.
Who holds the record for the most moves?

Well I can't see anyone beating that significantly for a good few weeks, if not few months, though I'm quite happy to be wrong!

For me personally, I think a provider would have to probably offer 3% now to make me move funds away from this account. I'm not a serial mover, I only move when something new beats my current savings account/s by probably around.0.20%

https://www.express.co.uk/finance/personalfinance/1681451/Savings-accounts-interest-rates-best-buy-savings-rates-Bank-of-England-cash-easy-access

Well yes but that's talking mostly about fixed rate accounts. I doubt we will see any Easy Access rates top 3% by the end of the year, which is what it would take for me to now move away from this account.

I'd be amazed if there aren't multiple easy access accounts over 3% by the end of the year.  We are at 2.75% already in mid October, and there are likely 2 more BOE rate hikes by Xmas.

But that is an outlier rate, with the next best being only 2.35%. I doubt Santander will improve this rate so currently AL Rayan will have to improve by 0.65% and most of other by around 1%.  I don't see that even with the boe increases expected, as we know that doesn't translate directly to savings rates. Even with the recent higher base rate rises we've only seen most of the banks move savings rates up bit by bit, 0.10 or 0.20%.

Daliah

Msrajjc2 said:

re the new Santander account, i believe you can choose to be paid interest monthly. if i were to pay in say £100 on 1 Nov, would the interest paid for Nov account for that? i can't seem to work it out from the docs they provide

The interest you get paid on the first of a month is for the previous month.

You would get 23p on December 1 for the £100 you deposited on November 1, provided you left the £100 in your account throughout November.

Sensory

gele said:

hoc said:

What "final checks" does Santander need to do to open a savings account for a 10+ year current account holder?

That’s what I was thinking when I posted earlier about a possible 3 day wait. I’ve had current account for around the same amount of time and it’s my main account. Seems odd that existing customers appear to have to wait much longer than newbies. 

Meh, me too. Very disappointing considering how fast others have opened their accounts and made transfers, all within 5 minutes. I'm used to savings accounts opening instantly.

financialbliss

On hold to Santander now. There's a block on my eSaver preventing me withdrawing funds.

On a separte note, I looked at this thread yesterday when we were on page 797 thinking it could get to 800 pages - been some replies over the last 24 hours !

janusd

Thumbs_Up said:

andyhicks88 said:

  I doubt we will see any Easy Access rates top 3% by the end of the year,

The next BoE meeting is due, (could be a emergency meeting even sooner ) on the 3rd  November. I’m calling it now a 0.75% basis points rise.

doesn't the Federal Reserve meet a day or two before that ? if so, BoE may have to take whatever the FR do into account too.