7-Feb '08 0.25% Rate cut to cost savers £525!!!

Paul_Herring

Thought the title might get your attention

Moneyfacts hyperbole http://www.moneywise.co.uk/news-views/2008/02/07/how-will-the-interest-rate-cut-affect-you

Moneyfacts calculates that the impact of the interest rate cut will be £131.25 for someone with savings of £2,500 or £525 for someone with savings of £10,000.

From their article I notice NS&I have already reduced their ISA rate from 6.05% to 5.8%

Lavendyr

Yes, NS&I are always quick to drop the rate I've found.

Just hoping that Icesave keep theirs up!!

chelseablue

Paul_Herring wrote: »

Thought the title might get your attention

Moneyfacts hyperbole http://www.moneywise.co.uk/news-views/2008/02/07/how-will-the-interest-rate-cut-affect-you



From their article I notice NS&I have already reduced their ISA rate from 6.05% to 5.8%

What if you have over £40,000?

tradetime

Ok I'm thick, I can't see how they get those figures £525 on £10,000 is over 5%. what have I done wrong or am I missing? A 0.25% base cut, assuming it was passed on through banks without them gouging any more for themselves would represent a reduction of £25 per year on £10,000 savings without taking tax into consideration

nicko33

tradetime wrote: »

Ok I'm thick, I can't see how they get those figures £525 on £10,000 is over 5%. what have I done wrong or am I missing?

They may be looking over 25 years (as with the reduction in mortgages) and knocking of tax,
but it's not obvious

charlieboycat

tradetime wrote: »

what have I done wrong or am I missing?

Nothing! £525 is what you would earn pa at the new bank rate - the "loss" due to the cut is only £25! Doesn't say much for the author of the Moneywise article!

Aegis

That particular calculation is utterly meaningless because they haven't specified a timeframe...

tradetime

Aegis wrote: »

That particular calculation is utterly meaningless because they haven't specified a timeframe...

Makes for a great headline though eh!
First rule of journalism....never mind the facts, what about the headline :beer:

PBA

That article also includes the line:

Moneywise_site wrote:

And if you haven’t utilised your £3,500 ISA limit yet then time is running out for you to do so.

Uh, which £3,500 ISA limit would that be again? The figures in that article seem to all be made up, best ignored...

Paul_Herring

charlieboycat wrote: »

Nothing! £525 is what you would earn pa at the new bank rate - the "loss" due to the cut is only £25! Doesn't say much for the author of the Moneywise article!

Well quite. After I made that post I noticed another 'little' error in that article - the ISA limit is a weird figure.

They quote £3,500, which is neither this year's or next year's cash ISA limit.

My posts on their site here if anyone wants to follow it up.

BenL

NS&I were fast out of the blocks.

I think I will need to check out the ISA deals and get moving.

I was going to stay with them for a 3rd year in April but this needs reviewing now.