Can MSE put pressure on banks to PASS ON the interest rates to those with Savings Accounts?

subjecttocontract

h1n1 said:

subjecttocontract said:

Following your post I checked my savings. I have over 60% (£400K) earning over 5%. I consider that to be OK when base rates are 5.25%.

do you have that 400K all with one provider? 

No, most of it is in ISA accounts that on the odd occasion exceed £85K but then I reduce the balance below that figure as soon as I can.

MeteredOut

If there was some level of enforced minimum savings rate (eg, base rate - 2%) all that would end up happening is that all savings rates would be at that level. It'd do to savings what the price cap did to the energy market.

I like it the way it is, where those that want to put a little bit of effort in get the best rates. If everyone put that effort in, it would drive rates down too.

h1n1

I suppose my issue is that I have well over 85K. I would have to shift all of it to Virgin Money, which is a risk I'd not want to take. I know Barclays could fail and I'd lose a lot. 
Luckily from April, you can have multiple ISA's and this will mean I can breakdown into two 85K pots and put into those banks with better rates ... but thats April and not now. I suspect BoE may reduce rates come the next review (although surprise inflation may change that amongst other factors),  so want to try and lock something in now to get the best returns possible 

oldernonethewiser

h1n1 said:

I suppose my issue is that I have well over 85K. I would have to shift all of it to Virgin Money, which is a risk I'd not want to take. I know Barclays could fail and I'd lose a lot. 
Luckily from April, you can have multiple ISA's and this will mean I can breakdown into two 85K pots and put into those banks with better rates ... but thats April and not now. I suspect BoE may reduce rates come the next review (although surprise inflation may change that amongst other factors),  so want to try and lock something in now to get the best returns possible 

Why would you have to do that?

eskbanker

h1n1 said:

I suppose my issue is that I have well over 85K. I would have to shift all of it to Virgin Money, which is a risk I'd not want to take. I know Barclays could fail and I'd lose a lot. 
Luckily from April, you can have multiple ISA's and this will mean I can breakdown into two 85K pots and put into those banks with better rates ... but thats April and not now. I suspect BoE may reduce rates come the next review (although surprise inflation may change that amongst other factors),  so want to try and lock something in now to get the best returns possible 

Just to be clear, the April change just means that you're no longer restricted to all current year cash ISA money having to be with the same institution, but the annual contribution limit remains at £20K, so this change is unlikely to make a significant difference to anyone wanting to find homes for amounts considerably in excess of that....

RG2015

h1n1 said:

I suppose my issue is that I have well over 85K. I would have to shift all of it to Virgin Money, which is a risk I'd not want to take. I know Barclays could fail and I'd lose a lot. 
Luckily from April, you can have multiple ISA's and this will mean I can breakdown into two 85K pots and put into those banks with better rates ... but thats April and not now. I suspect BoE may reduce rates come the next review (although surprise inflation may change that amongst other factors),  so want to try and lock something in now to get the best returns possible 

Just for additonal clarity, as per HMRC:

Transferring your ISA

You can transfer your Individual Savings Account (ISA) from one provider to another at any time.

You can transfer your savings to a different type of ISA or to the same type of ISA.

If you want to transfer money you’ve invested in an ISA during the current year, you must transfer all of it.

For money you invested in previous years, you can choose to transfer all or part of your savings.

https://www.gov.uk/individual-savings-accounts/transferring-your-isa#:~:text=You can transfer your savings,or part of your savings.

subjecttocontract

RG2015 said:

h1n1 said:

I suppose my issue is that I have well over 85K. I would have to shift all of it to Virgin Money, which is a risk I'd not want to take. I know Barclays could fail and I'd lose a lot. 
Luckily from April, you can have multiple ISA's and this will mean I can breakdown into two 85K pots and put into those banks with better rates ... but thats April and not now. I suspect BoE may reduce rates come the next review (although surprise inflation may change that amongst other factors),  so want to try and lock something in now to get the best returns possible 

Just for additonal clarity, as per HMRC:

Transferring your ISA

You can transfer your Individual Savings Account (ISA) from one provider to another at any time.

You can transfer your savings to a different type of ISA or to the same type of ISA.

If you want to transfer money you’ve invested in an ISA during the current year, you must transfer all of it.

For money you invested in previous years, you can choose to transfer all or part of your savings.

https://www.gov.uk/individual-savings-accounts/transferring-your-isa#:~:text=You can transfer your savings,or part of your savings.

But surely that only applies if the current ISA provider allows partial transfers.......some don't e.g. Secure Trust Bank. Even after the changes in April, partial transfers to different providers will be dependant on the providers rules.

h1n1

I was told that moving my money, including this years allowance, would mean all of it has to be transferred to Virgin. 
I can't transfer 85K and leave the rest where it is ... it would mean risking a large amount ....

masonic

subjecttocontract said:

RG2015 said:

h1n1 said:

I suppose my issue is that I have well over 85K. I would have to shift all of it to Virgin Money, which is a risk I'd not want to take. I know Barclays could fail and I'd lose a lot. 
Luckily from April, you can have multiple ISA's and this will mean I can breakdown into two 85K pots and put into those banks with better rates ... but thats April and not now. I suspect BoE may reduce rates come the next review (although surprise inflation may change that amongst other factors),  so want to try and lock something in now to get the best returns possible 

Just for additonal clarity, as per HMRC:

Transferring your ISA

You can transfer your Individual Savings Account (ISA) from one provider to another at any time.

You can transfer your savings to a different type of ISA or to the same type of ISA.

If you want to transfer money you’ve invested in an ISA during the current year, you must transfer all of it.

For money you invested in previous years, you can choose to transfer all or part of your savings.

https://www.gov.uk/individual-savings-accounts/transferring-your-isa#:~:text=You can transfer your savings,or part of your savings.

But surely that only applies if the current ISA provider allows partial transfers.......some don't e.g. Secure Trust Bank. Even after the changes in April, partial transfers to different providers will be dependant on the providers rules.

You can always opt to transfer to a provider who supports partial transfers and from there split out to others.

However, Barclays does support partial transfers for some of its ISAs, eg. Instant Cash ISA Issue 1.

RG2015

h1n1 said:

I was told that moving my money, including this years allowance, would mean all of it has to be transferred to Virgin. 
I can't transfer 85K and leave the rest where it is ... it would mean risking a large amount ....

Partial transfers of this year’s ISA allowance are not allowed by HMRC. However, you could ask to transfer an amount excluding this year’s allowance.

You may then also be able to transfer part of this balance.

I guess it will depend on the individual Barclays and Virgin Money ISA rules.