1 year savings accounts

CannyJock

funkey_monkey wrote: »

I've tried to work out the difference in Excel between using the two rates and there seems to be 5p in favour of monthly. Is this the best option?

As an side to this, if I took out a 1 year fixed term account and prior to its maturity I bought a house, would the banks give me a break as I'd be unable to access the money?

I prefer monthly interest - tracking my savings, investments and loans on a regular basis (spreadsheet junky:) ) I'm looking to see my net worth increase month on month. I also think there's more encouragement to put more away in savings when you can actually see that it's growing month by month.

Banks giving you a break? Never heard of such a thing. They'd simply loan you the money you have tied up in your fixed term account, and then charge you interest on it.

Steve_xx

ICICI Banks Fixed Term Deposit 6.85% product would pay you 5.75% if you withdrew early.

funkey_monkey

Have any of you read the thread on IceSave link:http://forums.moneysavingexpert.com/showthread.html?t=734807

Should I be worried if I am going plunge my hard earned £35k into it?

It's taking me ages to sort this savings a/c out, but at least I'm learning as I go along...:rolleyes:

tradetime

funkey_monkey wrote: »

Have any of you read the thread on IceSave link:http://forums.moneysavingexpert.com/showthread.html?t=734807

Should I be worried if I am going plunge my hard earned £35k into it?

It's taking me ages to sort this savings a/c out, but at least I'm learning as I go along...:rolleyes:

There's really no real way to answer this question definitivey. Each individual has to weigh up all the information available and act as they feel most comfortable. The banking industry by and large is not very transparent hence even the "experts" who study the financial sector have no real idea who is sitting on major financial problems. For example in the immediate aftermath of Northern Rock, Barclays was rumoured to have major problems lurking, to such an extent that trading in the shares was suspended during one day of freefall on the stock price. Bradford & Bingley was also mentioned as at significant risk. Basicaly there is a lot of shots in the dark.
The Icelandic banks have come in for a lot of flack recently, I think partly due to the fact that they are encroaching on the home banks turf, coupled with the fact that due to a rapid rise in the Icelandic stock market and a cooling in the global economy a number of large funds have scaled out of investments there. Also high interest rates and a strong currency fueled a lot of capital inflow from the carry trade. The currency has weakened considerably since then resulting in capital out flow again which has caught commentators attention. How pertinent to the stability of any of the banks this is, quite frankly is anyones guess. I have money with Icesave, and have no desire to move it as I personally see no real reason to assume any other institution that I might put it in would be any safer. But at the end of the day, this will be of no consolation to you as I am no more qualified to tell you how safe Landsbanki is than you are yourself. You just have to do whatever lets you sleep at night.

Steve_xx

funkey_monkey wrote: »

Have any of you read the thread on IceSave link:http://forums.moneysavingexpert.com/showthread.html?t=734807

Should I be worried if I am going plunge my hard earned £35k into it?

It's taking me ages to sort this savings a/c out, but at least I'm learning as I go along...:rolleyes:

Basically, as we all understand and know things to be today, your money is absolutely safe upto 35k. Even if something was to go wrong with your choice of bank all would not be lost, so long as you remember not to deposit more than 35k in any one institution.

funkey_monkey

Are the e-bonds any good at the minute? Nationwides has gone down to 6.25%. My bank (Northern Bank [NI] - part of Danske) is offering 4.95% AER on 1 year fixed for amounts over £50k...