IceSave Reduce Rate to 6.05%

Woodyrocks

So, now that we have digested the news, has anyone made a firm decision as to what to do now. Especially with the new tax year ensuing I am trying to avoid the stress of moving all my money about in one swoop and would like to stagger the movement starting now! I went for annual interest on Icesave so that is another bother because it doesn't mature for another couple of months :mad:

Birdie100

Well, I'm not entirely certain as to what to do now. Part of me wants to invest a third of my savings with them in the fixed rate 6.7%, becuase at least at the moment that means that you are still obtaining an average of 6.3% (if you then leave the rest of your funds with them to fall to 6.05%). I guess the ISA too becomes an enticing choice - actually a better rate of interest now. The other comment to point out is that the fact they've dropped the rates should be a reassurance - becuase it shows that they're being responsible. I suspect that in all probability, I'll open the full ISA with them, and start getting some tax free savings with them, fix a samll proportion of the money into the bonds, but leave the vast majority free to move. Remember, this rate cut will only mean a loss of £52.50 if you are invested at the full £35000 level, and now Icesave have made a move, I suspect that others will also. I suspect Icesave have been holding out and just seeing what other providers will do.

Stompa

Woodyrocks wrote: »

I went for annual interest on Icesave so that is another bother because it doesn't mature for another couple of months :mad:

The fact that you opted for annual interest shouldn't make any difference if you'd like to move your funds elsewhere.

wombat42_2

Stompa wrote: »

The fact that you opted for annual interest shouldn't make any difference if you'd like to move your funds elsewhere.

Yes you will get paid interest pro-rata - assuming we are not talking a fised interest bond here.

Lavendyr

No, it accrues daily and is paid annually, so doesn't matter when it matures.

Woodyrocks

Thanks for the clarification guys. Blonde moments are never fun but I didn't fancy just sitting my money there because of lost interest! I only have £5500 in there but still every little counts on the road to my mortgage.

It is worth mentioning that I am planning on moving my Barclays ISA to Icesave in April as long as it remains the best deal but I have about £10K in my A&L savings account - would it be worth moving the Icesave cash in there?

MiserlyMartin

nilrem wrote: »

Northern Rock Fixed Rate Access Bond does not look too bad ATM 6.50% Gross?AER Fixed for 12 months with full access! or 6.32% AER with monthly interest.

That bond has now been replaced with a new issue bond, similar but paying 6.35% fixed from 14/2/08 :-( Not quick enough

nilrem_2

MiserlyMartin wrote: »

That bond has now been replaced with a new issue bond, similar but paying 6.35% fixed from 14/2/08 :-( Not quick enough

Same here, I was in the process of putting some serious cash in the monthly account, still the replacement is not too bad.

planemad

Also with ICESAVE the funds have to be cleared funds, so it you transfer over monies from your linked account it has to go through the clearing process before you can open a fixed rate product.

Liz_the_Whizz

I'm going to give it a couple of weeks with Icesave to see what happens elsewhere.

Tactically, ICICI & the 6.5% gang could be waiting for people to move their money, then drop their rates too.

Still thinking about another FTB, but don't like to tie up too much just in case.