Best Rate???

HawkeyeTheGnu

Please excuse me if I`m barking up the wrong tree, but....

Having just spent a few hours looking for a decent home for my savings, then finding this site, I was surprised that the recommendation was given for ICICI`s rate of 6.41%

Apart from the fact that I have never heard of ICICI, what on earth is wrong with Bradford and Bingley`s "My Time" postal account?

OK Postal accounts may seem a little naff in this day and age, but if you`ve got some money to tuck away, and 6.45% is the rate on offer, then surely this is a better home for your money....or am I missing something?

Any advice gratefully received!

ManAtHome

B&B have some decent rates at the moment, but not the most consistent over the last few years (maybe they need the dosh now...). Keep your eyes open and be ready to move when somebody else has a better offer...

If you don't need the cash until Feb 2009, you can get 6.8% with B&B.

HawkeyeTheGnu

ManAtHome wrote: »

B&B have some decent rates at the moment, but not the most consistent over the last few years (maybe they need the dosh now...). Keep your eyes open and be ready to move when somebody else has a better offer...

If you don't need the cash until Feb 2009, you can get 6.8% with B&B.

Yes...I`d noticed that, but it`s a bond where no more deposits are allowed.

But I`m in the lucky position where I expect to have one or two more lump sums coming to me .....endowment, redundancy etc....and I prefer to have all my money in one readily accessible place, so this postal account seems ideal, especially when I can also withdraw as I please, without penalty.

I was just surprised it wasn`t mentioned on this site, and was worried I was missing something!

Liz_the_Whizz

HawkeyetheGnu

The B&B My Time account looks good. But disruption earlier this year to postal services and to internet access (highlighted by Northern Rock, but it could happen to any of us if we or our service provider had a technical hitch) made me realise how important it is to not have all your eggs in one basket.

So I would opt for a secondary account where you can access some of your funds at any time by walking into a branch or having the facility to BACS to your current account.

Steve_xx

HawkeyeTheGnu wrote: »

Please excuse me if I`m barking up the wrong tree, but....

Having just spent a few hours looking for a decent home for my savings, then finding this site, I was surprised that the recommendation was given for ICICI`s rate of 6.41%

Apart from the fact that I have never heard of ICICI, what on earth is wrong with Bradford and Bingley`s "My Time" postal account?

OK Postal accounts may seem a little naff in this day and age, but if you`ve got some money to tuck away, and 6.45% is the rate on offer, then surely this is a better home for your money....or am I missing something?

Any advice gratefully received!

The fact that you've not heard of ICICI Bank isn't especially relevant. ICICI Bank is as regulated as Bradford & Bingley, and therefore you are afforded protection of the first £35k deposited there.

The main differences between the two to consider are:

• The B&B annual rate is currently slightly higher than B&B's, therefore more attractive
• No interest is paid on B&B account with sub £1k balances
• If you opt for monthly interest on the B&B account then the rate is a reduced 6.27%, whereas interest is credited monthly to the ICICI account
• B&B are more likely to reduce their rates, as a result of the recent base-rate cut, than ICICI Bank are

Rafter

You should always focus on the AER when comparing rates otherwise whether interest is paid monthly or annually will distort things.

The ICICI is a great instant access account with a really good long term base rate guarantee. Personally I'd be nervous about investing more than the protected £35k with them because I don't think the Bank of England would rush to protect an Indian based bank as fast as it would say Northern Rock.

If you can afford to tie up your funds for a year or more you will get a much better rate with a fixed rate bond. London Scottish bank are currently paying 6.85% for £2000 or more according to moneyfacts.

R.

Secret_Wookie_2

Steve_xx wrote: »

The fact that you've not heard of ICICI Bank isn't especially relevant. ICICI Bank is as regulated as Bradford & Bingley, and therefore you are afforded protection of the first £35k deposited there.

The main differences between the two to consider are:

• The B&B annual rate is currently slightly higher than B&B's, therefore more attractive
• No interest is paid on B&B account with sub £1k balances
• If you opt for monthly interest on the B&B account then the rate is a reduced 6.27%, whereas interest is credited monthy to the ICICI account
• B&B are more likely to reduce their rates, as a result of the recent base-rate cut, than ICICI Bank are

So what your saying then is there is nothing wrong with it.

As a new product it will most likely move down 0.25% in line with the base rate fall, it won't be cut further as it is brand new. I would aslo expect ICIC's to go down 0.25% so B&B's is likley to be one of the highest paying accounts when the dust settles.

Steve_xx

Secret_Wookie_2 wrote: »

So what your saying then is there is nothing wrong with it.

As a new product it will most likely move down 0.25% in line with the base rate fall, it won't be cut further as it is brand new. I would aslo expect ICIC's to go down 0.25% so B&B's is likley to be one of the highest paying accounts when the dust settles.

There's nothing wrong with the account if it suits you.

I think historically you can see that ICICI Bank has remained competitive.