First direct reduction in interest rates including regular saver

hgt

Thanks for the info OP - This is a shame, and not even enough time to close my existing First Direct RS and re-open a new one at the old rate. Let's hope HSBC and M&S don't follow suit.

Rich1976

Just checked the HSBC interest rate Pdf online but that is dated March 2019 so presumably no announcement has been made however considering HSBC, FD and M&S are part of HSBC Bank I would assume they would all follow suit sooner or later. Not sure how much influence HSBC has over FD interest rate decisions though even though they both offer virtually identical appalling savings accounts.

gt94sss2

My HSBC RS expires on the 3rd - hopefully I can renew it before they follow suit (applied online for my new FD today)

An unintended consequence of forcing banks to ringfence their UK operations, I suspect.

It has left HSBC with lots of spare capital in the UK which means lower savings rates and perhaps more competitive mortgage offers for their customers.

karlie88

I cannot wait for the MSE news article on this along with the new thread linked to it.

karlie88

@ 2.75% I still think it's a worthy contender for a regular saver.

Zero_Sum

Would this be a legit reason for closing the current account for the £100 golden goodbye?

typistretired

Mine does not mature until July 2020 so I suppose they don't have to inform me. The email in August never mentioned the reduction.

apt

karlie88 wrote: »

@ 2.75% I still think it's a worthy contender for a regular saver.

Not that worthy given you can't close one early or make a withdrawal without a very heavy interest rate penalty. A series of Virgin Money regular savers is much better if you have access to a Virgin Money branch. The Club Lloyds regular saver is also a better bet as the higher monthly limit and penalty free withdrawals offset the slightly lower interest rate.

colsten

apt wrote: »

Not that worthy given you can't close one early or make a withdrawal without a very heavy interest rate penalty. A series of Virgin Money regular savers is much better if you have access to a Virgin Money branch. The Club Lloyds regular saver is also a better bet as the higher monthly limit and penalty free withdrawals offset the slightly lower interest rate.

Whilst it isn't for everybody, there are no advantages over and above the 2.75% FD RS for savers who are not looking for early access, who have no Virgin Money branches anywhere near them, and/or who already have the Clubs Lloyds and/or other monthly saver(s) yet still have spare cash.

Vortigern

Mine matures in November.

I think we should show our displeasure by not immediately renewing.

At 5% I would renew ASAP to avoid rate cuts. At 2.75% I can wait.

By deferring renewal I can move the pay date to the beginning of a month, and move the maturity date to even out the lumps in my RS cash flow.