Easy Access Savings

TheBanker

https://forums.moneysavingexpert.com/discussion/comment/80028836#Comment_80028836

Yes they are random. I have their Cash ISA issue 23 and I got a text last week saying they were increasing the AER to 3.45%. I looked online and saw my rate had increased as promised.

Then I sent them a secure message about an ISA transfer (with no mention of interest rates). In their reply they answered my question, then pointed out that they've just launched an Issue 24 ISA paying 3.4% AER and asking if I'd like to upgrade my account. I am not sure what benefit this would provide given the rate is exactly the same!

dosh37

It's no use expecting savings orgnanisations to inform you that higher interest rates are available. They are in the business of making as much money as possible.

They are not interested in helping savers maximise their returns. Why should they be?

I spend a lot of time chasing interest rates.

Is it worth worrying about differences of less than 1% when inflation is over 10% AND the tax threshold on savings interest remains unchanged?

Savers are, and have always been, given a raw deal.

I often think we need a 'savers union'. Like striking workers, we could hold off investing cash until savings organisations are willing to pay a decent return.

mebu60

dosh37 said:

It's no use expecting savings orgnanisations to inform you that higher interest rates are available. They are in the business of making as much money as possible.

They are not interested in helping savers maximise their returns. Why should they be?

I spend a lot of time chasing interest rates.

Is it worth worrying about differences of less than 1% when inflation is over 10% AND the tax threshold on savings interest remains unchanged?

Savers are, and have always been, given a raw deal.

I often think we need a 'savers union'. Like striking workers, we could hold off investing cash until savings organisations are willing to pay a decent return.

Where would we deposit the cash while we were holding off? 

eskbanker

mebu60 said:

dosh37 said:

I often think we need a 'savers union'. Like striking workers, we could hold off investing cash until savings organisations are willing to pay a decent return.

Where would we deposit the cash while we were holding off? 

Indeed - there was another recent thread highlighting other flaws with the concept of trying to get institutions to improve offerings by collectively withholding funds:

https://forums.moneysavingexpert.com/discussion/6442807/get-back-at-em

Section62

dosh37 said:

It's no use expecting savings orgnanisations to inform you that higher interest rates are available. They are in the business of making as much money as possible.

They are not interested in helping savers maximise their returns. Why should they be?

Not entirely true.

There are many financial institutions offering savings accounts with rates which could only be described as loss-leaders.  In some cases those products are conditional on holding another product - such as a current account - but not always.

Sometimes (Ford Money once being a case in point) they will offer attractive rates as a means of raising their profile or increasing the business size.  It isn't always about making as much money as possible.

Which is the thing the regulars on this forum exploit to their benefit.  I.e. making the effort to keep yourself informed of what the best savings rates are, and having no loyalty to any one provider.  Take the generosity when offered, then move on.