The easy access ISAs where it says 'rate drops to...after 12 mths'

kuepper

eg Plum, Moneybox, Zopa, Post office. So does that mean the rate is guaranteed to be above the rate it will drop down to until 12 months are up? The PO ISA says it has a 3.35% bonus (on top of 1.55%) for 12 months so doesn't that mean it will be 4.9% for 12 months????

tacpot12

No, the 1.55% is variable, only the 3.35% bonus is fixed, so if the Bank of England drops their rate withint the 12 months, the Post Office can reduce the 1.55%, and then you will only receive 3.35%+whatever they have dropped their variable rate to. 

gravel_2

The bonus is normally variable as well... so basically the bank decides the rate.

refluxer

gravel_2 said:

The bonus is normally variable as well... so basically the bank decides the rate.

That sounds odd - surely the whole point of a bonus rate is that that portion is guaranteed ?

Whenever I've held a savings account with a bonus rate, it's always been fixed. The bonuses for the Zopa and Post Office ISAs are fixed (not sure about the others mentioned).

boingy

Metro are reducing their bonus rate in my NLA savings account in a couple of weeks so it does happen. You need to read the small print of the particular account.

gravel_2

refluxer said:

gravel_2 said:

The bonus is normally variable as well... so basically the bank decides the rate.

That sounds odd - surely the whole point of a bonus rate is that that portion is guaranteed ?

Whenever I've held a savings account with a bonus rate, it's always been fixed. The bonuses for the Zopa and Post Office ISAs are fixed (not sure about the others mentioned).

I may have overstated it by saying "normally". It may be an isolated incident... Agree Post Office is a fixed bonus. Moneybox is silent so assume fixed.

Plum: Includes your Plum Bonus of 0.88% AER (variable)