Are there banks that tend to decrease rates not as low as other banks?

SeanM42

Yes, it's me again with another silly question. I have currently have a savings account with Marcus but their rate is dropping from 4.55% to 4.3% in a week, so will move everything but £1 into another account. Are there certain banks who are not so inclined to impose bigger cuts to rates than others? Cahoot presently seems the likely institution that I'll go with, with the 60 day advance change of rate notification being appealing.

Albermarle

SeanM42 said:

Yes, it's me again with another silly question. I have currently have a savings account with Marcus but their rate is dropping from 4.55% to 4.3% in a week, so will move everything but £1 into another account. Are there certain banks who are not so inclined to impose bigger cuts to rates than others? Cahoot presently seems the likely institution that I'll go with, with the 60 day advance change of rate notification being appealing.

A lot depends on the savings providers need for money to lend out ( which is how they make a profit). If lending is a bit slow, they can cut their savings interest rate so as not to attract too many savings funds.
So it is difficult to predict how each one will behave over a specific time period.

Hoenir

Banks will set their rates on commercial grounds depending on whether they need deposits or they don't. Market leaders often vanish for long periods. 

Mark_d

0.25% is £25 over a year, based on cash savings of £10,000.

I keep all my cash in my Kroo current account.  Unless you have vast amounts of cash, the difference in interest rate probably only makes a tiny difference over the year.

slinger2

Cahoot does seem a decent option. Currently 4.85% and 5.2% for the Sunny Day account.

Of course if you can tie the money up you'll perhaps get more for longer. eg Investec 90 day 5.25% with 104 days notice of rate decrease (£5k min).

allegro120

slinger2 said:

Cahoot does seem a decent option. Currently 4.85% and 5.2% for the Sunny Day account.

Of course if you can tie the money up you'll perhaps get more for longer. eg Investec 90 day 5.25% with 104 days notice of rate decrease (£5k min).

I have Cahoot Simple Saver (Issue 2), still pays 5.12% and I haven't received any notifications of reduction yet.

allegro120

SeanM42 said:

Yes, it's me again with another silly question. I have currently have a savings account with Marcus but their rate is dropping from 4.55% to 4.3% in a week, so will move everything but £1 into another account. Are there certain banks who are not so inclined to impose bigger cuts to rates than others? Cahoot presently seems the likely institution that I'll go with, with the 60 day advance change of rate notification being appealing.

You don't have to have £1 in Marcus.  My balance has been £0 for many years now and the account is still opened.

Cahoot is a good choice.  Much better rate and it is more flexible. Unlike Marcus, Cahoot allows you to set as many payees as you like.  60 day advance change of rate notification is also an advantage in the current climate.

slinger2

allegro120 said:

slinger2 said:

Cahoot does seem a decent option. Currently 4.85% and 5.2% for the Sunny Day account.

Of course if you can tie the money up you'll perhaps get more for longer. eg Investec 90 day 5.25% with 104 days notice of rate decrease (£5k min).

I have Cahoot Simple Saver (Issue 2), still pays 5.12% and I haven't received any notifications of reduction yet.

Issue 4 currently. Perhaps they're waiting until the 12 months are up.

jameseonline

Easy Access account rates are tending to go down more so than Regular Savings accounts, all depends what you want from a savings account I guess. 

Cahoot (owned by Santander) Sunny Day is good but limited to £3000.

Santander Edge Saver is now 6% to new people (or existing Edge Current Account holders that have been with them a year) but was 7%. Limited to £4000.

You don't even need to fund the Edge current account unless you want to be eligible for any cashback for bills etc.

Both of those can be instantly maxed & paid monthly & are easy access.

A lot of regular savings accounts can be closed easily and without any penalties, some you can even take money out of as and when you like without needing to close them, therefore I treat them like an easy access account, obviously if you close an account it might be a day or so (depending if it's weekend etc) to get money back plus any interest but that's fine with me, also if you do close a regular you may not be able to open another of the same type untill your account was due to mature.

Zaul22

Paragon are always high, but limited access. Cynergy always stay near the top but have weird antiquated systems. Cahoot should stay high because they have a 1 year limit. Depends what strings you can accept.

Hoenir

Zaul22 said:

Paragon are always high, but limited access. 

Paragon Bank are heavily into BTL lending. Will tap the market for the tranche of funding required. Then close the product.