ICICI reduce interest rate to 5.15% [AER] from 01/11/05

innovate

Posted in one of the ICICI polls threads already, but I thought this is worth a separate thread. Still a v good rate, and I like that they spell out that the rate applies to existing and new customers - no uncertainty there ;-)

Dear HiSAVE customer,


With effect from November 1, 2005, ICICI Bank UK Ltd. will revise the HiSAVE savings interest rate to

5.15% AER (5.03% Gross). All our new and existing account holders will enjoy this revised rate.

This new rate continues to be one of the most competitive for an online savings product in the United Kingdom.

oldagetraveller

They are obviously unsure as to who has accounts with them. I received the e-mail too, in spite of closing my account weeks ago!?

charlieboycat

Got my email from them this morning. 5.15% isn't bad at the moment - but I opened one of the new Cahoot 5.25% accounts yesterday. At least we know that Cahoot can operate the direct debit system without losing our money !!

innovate

You only get the Cahoot 5.25% on savings above £14,999 (and less than £100K), below that it is 4.25%. These Cahoot %ages are GROSS rates, not AER (AERs are 4.93 and 3.93 respectively). The new ICICI 5.15% is AER.

(I am not advocating one above the other, just pointing out some facts).

charlieboycat

innovate wrote:

You only get the Cahoot 5.25% on savings above £14,999 (and less than £100K), below that it is 4.25%. These Cahoot %ages are GROSS rates, not AER (AERs are 4.93 and 3.93 respectively). The new ICICI 5.15% is AER.

(I am not advocating one above the other, just pointing out some facts).

Agreed they are gross - I would only use the Cahoot account for 6 months then close it.

However, I don't think I agree that the 5.25% rate applies only to the excess over £15k. The notes to the rate table say "Please note that the tier of interest above, that is applicable to the balance of your account, is applied to the total balance." This is different to the notes to the rate table re the 2004 introductory rate accounts (which make it explicit by example that in that case it works as you suggest - albeit in reverse with a lower rate on the higher tier).

I haven't put any money into it yet, but I assumed (in applying for a new bonus account yesterday) that so long as you have more than £15k in the account you get 5.25% on the whole balance (albeit only for six months).

What do others think?

masonic

charlieboycat wrote:

However, I don't think I agree that the 5.25% rate applies only to the excess over £15k.

I think you have misinterpreted innovate's post. The 5.25% rate would apply to the whole balance if it is £15k or more.

charlieboycat

masonic wrote:

I think you have misinterpreted innovate's post. The 5.25% rate would apply to the whole balance if it is £15k or more.

Not sure that I did misinterpret innovate. On another thread innovate wrote:

"- - but the 5.25% is still only available at the cost of a much reduced rate [4.25%] for your first £14,999! YorkshireBoy is spot on, with £30-£40K, you are better off with ING (or some other alternatives). Not even if you have more to put into the account does the Cahoot rate beat other offers, it's more like a "me too" from Cahoot"

That's not my interpretation. Like you, I think the 5.25% rate applies to the whole balance if it is more than £15k.

Since posting this I have emailed Cahoot and had an email response as follows:

I can confirm that the complete balance as long as it is over £15,000
would attract the higher rate of interest.