INTEREST RATES BY JANUARY?

Thrugelmir

jjlothin said:

eskbanker said:

RetSol said:

I'd bank the 0.7%, if I were you.  

It's not really bankable as such though, is it, it's still a variable rate - that reduced rate is currently beaten by a number of easy access products, but if rates continue to tumble then who's to say that the Investec one won't fall further too?

Thanks, both, for your thoughts on this. I guess that if the Investec rate IS going to tumble further (aaaargh!), they will at least have to give me written notice in advance? Leastways, they emailed me on 28 September to warn that rates would be dropping as of 18 January ...

Financial institutions will set their savings rates sufficiently high enough to draw in the funding that they require. For cost efficiency they'll target them high enough to warrant merit on the best buy tables (free advertising and marketing). Once the target is reached they'll drop back into oblivion. 

jjlothin

petelondon said:

I'm in exactly the same situation and was mulling over the same thing ! 
I was just going to action the withdrawal and take a chance. Especially as the Investec notice is still variable they could reduce it further.
Hopefully there is an easy access at the time , even at around 0.5% ,and then in the very small hope that something better appears, i can move it easily. 

Just when I'd more or less made up my mind to leave well alone, you've now made me think perhaps I should move out after all

shortseller09

On £50k for 3 months every 0.1% difference in rate equates to £12.50, so I wouldn't get too stressed over it.

jjlothin

shortseller09 said:

On £50k for 3 months every 0.1% difference in rate equates to £12.50, so I wouldn't get too stressed over it.

That's also a good point

cloud_dog

shortseller09 said:

On £50k for 3 months every 0.1% difference in rate equates to £12.50, so I wouldn't get too stressed over it.

That is a dangerous train of thought to follow, especially for a MSEer 

melbury

5% would be nice.
Well I can dream can't I..........

stephenadarglas

melbury said:

5% would be nice.
Well I can dream can't I..........

Yes - but you'll have to live a long time

jimjames

Thrugelmir said:

Savings rates may drop closer and closer to 0%. 

Considering the banks are being asked by November to look at how negative interest rates would impact them I very much doubt that rates in January will be higher than they are today

Thrugelmir

jimjames said:

Thrugelmir said:

Savings rates may drop closer and closer to 0%. 

Considering the banks are being asked by November to look at how negative interest rates would impact them I very much doubt that rates in January will be higher than they are today

Negative rates will result in banks increasing charges elsewhere. As is a direct hit on their profitability.