Kaupthing Edge Savings Rate Frozen For Now

moneylover

jackdoor wrote: »

A 3-year fix in the current climate might not be the best thing. It's likely rates will start to rise from the 2nd half of this year (at the latest). Presumably for pension purposes you'll need monthly interest?

Having a lot of money sitting in a current account is poor planning indeed, especially if it's so important to you?

Its in the current account waiting to transfer into the excellent 3 ear Kaupthing Edge account - thats the one and only reason!!! And no one knows what interest rates will do so I have my money in a mix of one year, two year and three year accounts all at the very best rates I can get. And a mix of monthly and term interest rates.

MiserlyMartin

jackdoor wrote: »

A 3-year fix in the current climate might not be the best thing. It's likely rates will start to rise from the 2nd half of this year (at the latest). Presumably for pension purposes you'll need monthly interest?

Having a lot of money sitting in a current account is poor planning indeed, especially if it's so important to you?

I think you should lay off being rude to Moneylover. What makes you think rates will start to rise later this year when up until now the general consensus has been rates to fall to 4% eventually? Is it because of higher than expected inflation data?

bristolleedsfan

Mr._H wrote: »

There's no need to be rude.

I know all of my savings accounts I've ever had would only allow transfers to linked accounts. Therefore, if I want to open a new account with someone else with a large deposit, that would have to go via my current account. If it's a bond, you can't do a small first payment then top it up - usually all the money has to be deposited in one go.

So, it doesn't sound like poor planning to me.

People usually move the funds into the current account at the same time as an application is being made for a savings account, not sitting there waiting for something else to occur before they can even make the application.

bristolleedsfan

MiserlyMartin wrote: »

I What makes you think rates will start to rise later this year when up until now the general consensus has been rates to fall to 4% eventually? Is it because of higher than expected inflation data?

I agree a 3 year fix is not a good idea IMO, Rates wont drop this year because it has been stated today no more decreases for a few months being as CPI gonna hit 3% in middle of 2008, Rates will reduce further during 2008 and rates will increase IMO during 2009.

oscarhugo

Further to my post of a few days ago -- anybody else BEEN UNABLE to deposit into their Kaupthing Edge a/c because of this sort code ???

I am still awaiting a reply from Kaupthing to the 2 secure messages I sent them. The Coventry BS has updated me twice but the situation is still unresolved.

Stompa

bristolleedsfan wrote: »

People usually move the funds into the current account at the same time as an application is being made for a savings account,...

Moving substantial funds into a current account prior to your final destination savings account being up and running seems like a very foolish thing to do.

Stompa

moneylover wrote: »

how long is it taking on average for accounts to be opened - ie after a bank statement has been posted.

FWIW I sent off my bank statement on the Tuesday and received an email on the following Friday evening giving me details of how to access the account.

Stompa

oscarhugo wrote: »

Further to my post of a few days ago -- anybody else BEEN UNABLE to deposit into their Kaupthing Edge a/c because of this sort code ???

My £1 test transfer is still in transit - I'll let you know when (if?) it arrives.

moneylover

bristolleedsfan wrote: »

People usually move the funds into the current account at the same time as an application is being made for a savings account, not sitting there waiting for something else to occur before they can even make the application.

Of course. I only moved the money into my current account once the first stage of opening the Kaupthing Edge account was open. Not before. But this account is unusual in that it is opened in two stages and I need the money ready to move once the account is fully open. I have been criticised for money sitting in current account when there is good reason and also for going for a three year fix (which is just one of a range of products I have) when no one really knows how interest rates will move longer term. But thanks to Stompa who actually answered the question I asked in my original post as to roughly how long it was taking for an account to fully open.

Stompa

moneylover wrote: »

I have been criticised for money sitting in current account

FWIW I maintain a savings account with the same bank as my current account. I can then transfer instantly between the savings and current account. It doesn't pay the best rate of interest, but can be handy for 'parking' funds temporarily in these sort of circumstances such that you get a bit more than the usual derisory rate offered by most current accounts.