Notice Accounts

Patr100

SuzzleBumpkin said:

Looks like interest rates are going up again soon. Maybe as much as 0.5%. I think we’ll be getting some more rate rises and new products over the next 3 weeks or so. Good times if you’re a saver and don’t have a mortgage. (I do feel for people with mortgages, though). 

https://moneyweek.com/economy/uk-economy/605427/when-will-interest-rates-go-up

Maybe, maybe not.  Andrew Bailey continues to  actually say very little of substance , so you can have completely opposite headlines on the same day: 

Guardian:

 Bank of England boss signals interest rates may have peaked

BBC website:

Bank of England boss says UK interest rates may rise further

This is what he actually said, from your link:

 “I would caution against suggesting either that we are done with increasing the Bank Rate, or that we will inevitably need to do more. Some further increase in Bank Rate may turn out to be appropriate, but nothing is decided,” he said.

SuzzleBumpkin

The main reason why I think we’re in for another rise is because he tends to be conservative over rate rises. For example he voted for a 0.25% rise last time, when it went up by 0.5%. My guess is a 0.25% next time, or even another half a percent. The inflation rate is not coming down as much as they’d like. 

That’s my thinking, anyway, for what it’s worth. 😊

PhilFox1985

I have money with Investec at 3.55%, the 90 notice account.

Does anyone know if they have any kind of history of increasing rates to pass on rate rises?

If so, does this get directly applied, or do you need to take some action to action (I.e. internal transfer)?

Asking as if not I'll need to seriously consider whether to put in a withdrawal request fairly soon, in anticipation that the account probably won't be competitive in 3 months time. 

On that, does anyone know if withdrawal requests are binding, or can they be cancelled?

sgog

PhilFox1985 said:

I have money with Investec at 3.55%, the 90 notice account.

Does anyone know if they have any kind of history of increasing rates to pass on rate rises?

If so, does this get directly applied, or do you need to take some action to action (I.e. internal transfer)?

Asking as if not I'll need to seriously consider whether to put in a withdrawal request fairly soon, in anticipation that the account probably won't be competitive in 3 months time. 

On that, does anyone know if withdrawal requests are binding, or can they be cancelled?

I also have this account. I gave my notice as soon as I opened it; you can cancel the withdrawal if you like, so there's really no reason not to.

sgog

@PhilFox1985 -- another trick, if you have more than £5000 with them, is to have multiple withdrawal requests: one for £5000 and one or more small ones.

You can then decide if you want to actually withdraw it all or cancel or £5000 withdrawal and take out as much as you want from the rest.

PhilFox1985

Thanks both, very helpful. 

The second comment on various amounts, there is no 'trick' there. Just choosing a range of figures so that if sensible you could do a partial withdrawal in 90 days?

This actually doesn't make loads of sense for us, we have plenty of easy access cash available elsewhere. However a useful tip to know.

sgog

PhilFox1985 said:

Thanks both, very helpful. 

The second comment on various amounts, there is no 'trick' there. Just choosing a range of figures so that if sensible you could do a partial withdrawal in 90 days?

This actually doesn't make loads of sense for us, we have plenty of easy access cash available elsewhere. However a useful tip to know.

I think the issue is that they don't allow partial cancellation of the withdrawal notice.
Otherwise, you could give notice for the whole amount and cancel exactly the amount you need.

I also have a combination of easy access, notice, and fixed accounts, but I find it useful to be able to do partial withdrawals (I like to keep a few months' worth of money accessible, then break the notice account if needed, then if still need to draw from the fixed ones). Having the partial withdrawal allows "balancing" the easy and notice accounts to make sure I have enough money accessible.

Minty33

Investec generally only change the rate on the 90 day account on the 15th of the month*
co-incides with when they pay interest on the monthly option
- I guess it makes the interest easier if only one rate for the whole month 

so if you're waiting for a rise , check on the 15th, if it doesn't happen you'll have to wait and see on the follwoing 15th

* while I've been looking over the last 12 months

SuzzleBumpkin

Oak North and DF Capital must be due rate rises soon. Unusually, they are really starting to lag behind the others now. 

Burcot

Chip (app only) updated with new rate - easy access 3.4%