Is there any point changing to a different easy access savings account?

reheat

I currently have a bit over £30K in a Nationwide Loyalty Saver 15yr, which was paying 1.1% AER and has now dropped to 0.25%. I see there are some other easy access accounts paying 1.2%, but is there any real point switching? All these other accounts are variable rate from day one, and I presume they will soon be following suit and drastically dropping their rates also. Would seem silly to switch if it's almost inevitable their rates are also about to plummet.

I need easy access, because there are reasons I need to to dip into it at fairly short notice at the moment, whilst at the same time I'm paying a reasonable sum into it monthly.

Am I missing anything? Are there any better alternatives to consider?

d63

go for an account that has already taken a rate drop? like, well, marcus now at 1.2% which is a firm favourite around here, or NS&I who have said they are not going ahead with their previously announced rate drop,  their direct saver is certainly not the best at 1% but their income bonds at 1.15% are a bit better. 
i dare say other people will have some better suggestions and the rates on offer are all pretty dreadful, but still better perhaps than not switching!

george4064

I think you need to consider switching from two angles;

1. How much is the relative increase in interest rate?
I.e. 1% to 1.15% is a 15% increase, but 0.25% to 1.2% is a 380% increase. Second change is much more obvious to take than the first one.

2. How much extra interest do you stand to gain and how much extra interest are you bothered about?
Effectively a trade off between effort and interest.

xylophone

Opening Marcus was effortless - then it's just a matter of moving the money from Nationwide saver to your linked bank account and out to Marcus.

colsten

WOW, you had £30k linger in a 1.1% account    when you could easily have got 1.5% or even 1.6% for a long while. Massive difference in the interest you could get in a year.

£30k at 1.1%: £330
£30K at 1.5%: £450

And now you are wondering whether you should accept 0.25% or go for 1.2%?

£30k at 0.25%: £75
£30k at 1.2%: £360

Albermarle

As has been widely commented about on the forum , the Nationwide cuts were especially drastic and more than any other provider.

colsten

Albermarle said:

As has been widely commented about on the forum , the Nationwide cuts were especially drastic and more than any other provider.

I think Coventry's cuts were equally brutal. 

Chloe_G

colsten said:

Albermarle said:

As has been widely commented about on the forum , the Nationwide cuts were especially drastic and more than any other provider.

I think Coventry's cuts were equally brutal. 

Yes, I was shocked at Coventry's cuts - I must have been with them for over 10 years or so and they have consistently kept reasonable rates in the past.

JustAnotherSaver

If the others are at 1.2% then they're 1.2%.

They'll only drop when they drop. Until then they're 1.2%, which is more than what you're getting.

Nothing lasts forever.

glider3560

You'll earn approximately an extra 78p interest each day, or £23.75 per month, or £285 per year.

Only you can decide whether it is worth the effort of changing.  Even if the higher rate lasts 2 months, you've made an extra £47.50 for around 15 minutes work.