Kaupthing Edge fixed term deposit confusion

MiserlyMartin

My feeling is that due to the high inflation, the MPC will raise rates sometime this year. I've heard comments from various 'experts' that they won't raise rates hoping that a slowdown in the economy will lower inflation instead.

My view is that the Bank of England ought to be concentrating on its remit of controlling inflation (which is way above target). Its all very well having mortgages at low levels but this is not much good if the rest of peoples incomes are eaten up by soaring consumer prices on everyday items, food etc.

Look at it this way 7.15% is still nearly 0.75% above the best variable rate deals. Rates or LIBOR would have to raise by 0.75% before it was equalled.

Stompa

FWIW the button has just magically appeared on my account enabling me to apply online rather than by phone.

funkyhitman

Hi yes same with me too. Looks like they're slowly updating old accounts. Good stuff.

romeroe

The current eSaving rate is 6.55%, however they offer a 3 yr fixed @7.67%... however the penalty for exiting the fixed deal early is to get interest at 6.67% (1% penalty as per http://www.kaupthingedge.co.uk/Help/Faqs.aspx?id=03).

Surely this works out better than the instant access account (unless you know that you don't need the money for 6 months at which point it would have been better off in the 6 month fixed @ 6.85%).

Ellis

Stompa

romeroe wrote: »

Surely this works out better than the instant access account (unless you know that you don't need the money for 6 months at which point it would have been better off in the 6 month fixed @ 6.85%).

See here:

http://forums.moneysavingexpert.com/showthread.html?t=1072599