Highest Savings Rate 1 December 2022 at 3:53PM in Savings & investments 31 replies 2.7K views

RG2015

7.00% for the First Direct regular saver is currently the highest savings rate on any UK savings account.

This has bypassed 5.00% and 6.00% completely with the next highest being 4.95% for a 5 year bond with Ford Money.

This reminds me of Bob Beamon in 1968 in the Olympic long jump in Mexico City in 1968. He recorded 29 foot 2.5 inches in the rarefied atmosphere way above sea level.

This completely eclipsed the previous world record of 27 feet 4.75 inches missing out 28 feet completely. 

cricidmuslibale

RG2015 said:

7.00% for the First Direct regular saver is currently the highest savings rate on any UK savings account.

This has bypassed 5.00% and 6.00% completely with the next highest being 4.95% for a 5 year bond with Ford Money.

This reminds me of Bob Beamon in 1968 in the Olympic long jump in Mexico City in 1968. He recorded 29 foot 2.5 inches in the rarefied atmosphere way above sea level.

This completely eclipsed the previous world record of 27 feet 4.75 inches missing out 28 feet completely. 

This is a very inspired and completely unexpected (to me) comparison! I’m too young to have seen Bob Beamon’s jump but I do remember seeing Jonathan Edwards doing a not dissimilar leap into unknown territory, creating a new world record, in the triple jump quite a few years ago now!

refluxer

RG2015 said:

7.00% for the First Direct regular saver is currently the highest savings rate on any UK savings account.

This has bypassed 5.00% and 6.00% completely with the next highest being 4.95% for a 5 year bond with Ford Money.

I've just done the sums on this one - presumably the best-case scenario for this FD Regular Saver would be drip-feeding £300/month from the Monmouthshire Premium Instant Access account @ 3% (if you managed to get one as they're no longer available to open online).

This would generate £185 in interest in total according to the MSE RS calculator which equates to a 5.1% return on your £3,600 - ie. exactly the same as the return from a Barclays Rainy Day Saver, which is the highest (non-RS) savings interest rate currently available - coincidence ?!

Rather like the Barclays account was a few months ago though, it's a great headline-grabbing rate and must surely be designed to get more people using their current account.

grumbler

RG2015 said:

7.00% for the First Direct regular saver is currently the highest savings rate on any UK savings account.

It's not actually a 'savings rate'. It's a marketing gimmick,  about £30 £60 p.a. bribe to their customers that are prepared to perform some actions to get this bribe.

Any bank can easily beat this 'rate' by offering, say, 20% on, say, £10 balance.

RG2015

cricidmuslibale said:

RG2015 said:

7.00% for the First Direct regular saver is currently the highest savings rate on any UK savings account.

This has bypassed 5.00% and 6.00% completely with the next highest being 4.95% for a 5 year bond with Ford Money.

This reminds me of Bob Beamon in 1968 in the Olympic long jump in Mexico City in 1968. He recorded 29 foot 2.5 inches in the rarefied atmosphere way above sea level.

This completely eclipsed the previous world record of 27 feet 4.75 inches missing out 28 feet completely. 

This is a very inspired and completely unexpected (to me) comparison! I’m too young to have seen Bob Beamon’s jump but I do remember seeing Jonathan Edwards doing a not dissimilar leap into unknown territory, creating a new world record, in the triple jump quite a few years ago now!

I do like a good analogy.

What is inspired is the way First Direct are creating so much PR from a relatively low cost initiative. And as @refluxer says it must be to boost new and returning current account customers.

It is unlikely to be anywhere as near as costly as Chase UK's 1.50% savings account. It is amazing to think that was only launched just over 8 months ago.

soulsaver

The 5 year Bob Beamon from Ford Money appears to have retired...  NLA.. Fixed Saver - fixed rate savings | Ford Money

RG2015

soulsaver said:

The 5 year Bob Beamon from Ford Money appears to have retired...  NLA.. Fixed Saver - fixed rate savings | Ford Money

I just got it from Moneyfacts. Perhaps they are slipping in their timely updates.

PS If you are an existing customer you can still log in and get this account at 4.95% but I guess that won't last long.

RG2015

grumbler said:

RG2015 said:

7.00% for the First Direct regular saver is currently the highest savings rate on any UK savings account.

It's not actually a 'savings rate'. It's a marketing gimmick,  about £30 p.a. bribe to their customers that are prepared to perform some actions to get this bribe.

Any bank can easily beat this 'rate' by offering, say, 20% on, say, £10 balance.

When is a savings rate not a savings rate?

And let's not forget all those folk signing up in expectation of a yield of £252 after 12 months.

eskbanker

RG2015 said:

I do like a good analogy.

* waits for all the threads from hesitant savers asking about whether to go for the 400m or the 800m *

RG2015

eskbanker said:

RG2015 said:

I do like a good analogy.

* waits for all the threads from hesitant savers asking about whether to go for the 400m or the 800m *

A five year fixed saver definitely feels like a marathon to me.

Hopefully those opening one would not end up like poor old Pheidippides on the finishing line.

MikeJXE

I've been wondering about all the hype and clamber to open one, It surprised me with all the very smart people on here. Not that I'm getting at the smart ones so it must have been from the not so smart. 7% rate on that account is nothing special if you have a lump sum to invest.