Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • Former MSE Helen
    • By Former MSE Helen 13th Oct 14, 4:14 PM
    • 2,324Posts
    • 971Thanks
    Former MSE Helen
    MSE News: Savers told to look elsewhere as Intelligent Finance cuts ISA rates
    • #1
    • 13th Oct 14, 4:14 PM
    MSE News: Savers told to look elsewhere as Intelligent Finance cuts ISA rates 13th Oct 14 at 4:14 PM
    Anyone who has (N)ISA savings with Intelligent Finance should consider moving their cash as it cut interest rates today

    Read the full story:

    Savers told to look elsewhere as Intelligent Finance cuts ISA rates




    Click reply below to discuss. If you havenít already, join the forum to reply. If you arenít sure how it all works, read our New to Forum? Intro Guide.

Page 1
    • jimjames
    • By jimjames 13th Oct 14, 4:39 PM
    • 13,227 Posts
    • 12,276 Thanks
    jimjames
    • #2
    • 13th Oct 14, 4:39 PM
    • #2
    • 13th Oct 14, 4:39 PM
    Maybe to interest paying current accounts?
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Pricy147
    • By Pricy147 13th Oct 14, 5:19 PM
    • 1,296 Posts
    • 283 Thanks
    Pricy147
    • #3
    • 13th Oct 14, 5:19 PM
    • #3
    • 13th Oct 14, 5:19 PM
    All part of their game plan to get customers off their books due to the eu ruling and costs of continuing to offer the product.

    Been a customer since around 2004 and nothing that i know on the market today compares with what they originally offered. Real shame.

    Still keep my account going as like ability to have multiple savings jars. Not so easy elsewhere.

    Remember have a 15k loan for a car aroung 8% apr which was competitive at the time. Then stoozing credit cards at 0% into the savings accounts to offset. No balance transfer fees back then either. Barely paid any interest on loan over 5 yrs.
    To Stooze or Not To Stooze - Theres only one option
    • Cap Hero
    • By Cap Hero 13th Oct 14, 6:23 PM
    • 118 Posts
    • 178 Thanks
    Cap Hero
    • #4
    • 13th Oct 14, 6:23 PM
    • #4
    • 13th Oct 14, 6:23 PM
    I had to move my NISA investments earlier this year due to under performance, checked out the usual suspects like Nutmeg.com, HL and Barclays and chose the former in the end. It is easier to move your savings these days at least thanks to recent rule changes.

    I think you should always shop around every year for the best NISA deal as they are all forever moving the goalposts, a bit like they do with mobile contracts but perhaps with more serious implications for your pocket in the long run!
    • Thrugelmir
    • By Thrugelmir 13th Oct 14, 6:59 PM
    • 63,125 Posts
    • 56,030 Thanks
    Thrugelmir
    • #5
    • 13th Oct 14, 6:59 PM
    • #5
    • 13th Oct 14, 6:59 PM
    All part of their game plan to get customers off their books due to the eu ruling and costs of continuing to offer the product.
    Originally posted by Pricy147
    Little point in operating it as a separate brand. Makes no commercial sense. Given the New World that lies ahead in the future for retail banks.
    "'The mistakes we make as investors is when the market's going up, we think it's going to go up forever. When the market goes down, we think it's going to go down forever. Neither of those things actually happen. Doesn't do anything forever. It's by the moment.'" - John Bogle
    • Pincher
    • By Pincher 14th Oct 14, 9:02 AM
    • 6,516 Posts
    • 2,491 Thanks
    Pincher
    • #6
    • 14th Oct 14, 9:02 AM
    • #6
    • 14th Oct 14, 9:02 AM
    I take solace from Joseph and the Amazing Technicoloured Dream Coat. Seven lean year followed seven years of plenty.


    So if you consider 2001 to 2007 as fat years, and 2008 to 2014 as lean years, the misery should be over, and we'll get some decent interest rates at last.
    • minislim
    • By minislim 14th Oct 14, 9:48 AM
    • 330 Posts
    • 197 Thanks
    minislim
    • #7
    • 14th Oct 14, 9:48 AM
    • #7
    • 14th Oct 14, 9:48 AM
    can somebody in moneysavingexpert please investigate the current situation on fixed rate nisa's?

    almost every single one on the market is technically not a savings account!
    its a investment fund!
    even though its called New Individual Savings Account you can only invest your money in and pay into it in a short duration. then its locked for the fixed duration and no further investment is allowed.

    so how can you continue to save into your nisa?
    Last edited by minislim; 14-10-2014 at 9:49 AM. Reason: missed a bit
    • bowlhead99
    • By bowlhead99 14th Oct 14, 10:02 AM
    • 8,728 Posts
    • 15,969 Thanks
    bowlhead99
    • #8
    • 14th Oct 14, 10:02 AM
    • #8
    • 14th Oct 14, 10:02 AM
    can somebody in moneysavingexpert please investigate the current situation on fixed rate nisa's?
    Originally posted by minislim
    It stands to reason that if you are going to hold them to paying you a fixed rate of interest, you can't keep giving them more and more money over time and expect them to continue to pay that same guaranteed rate. Especially as market interest rates change all the time, they can't give you a guarantee if they don't know how much they might need to set aside to pay out and when.

    So, all the fixed rate deposits are still savings accounts. You can save a fixed amount of money for a rainy day and get it back in a fixed amount of time to re-invest, re-save, or move somewhere else entirely. But they are not for ongoing increasing amounts of savings where you give them more each day or week or month. You put in what you have saved at the beginning and then they go and achieve a return on it somewhere and pay their running costs and hopefully some profits to make it worth their while, and then they guarantee to make the money that's left over, available to you whenever they said you could have it. Maybe 1 year, 2 year etc. The longer you agree to leave it without touching it, the more uses they would have for it internally at the bank, so the more they will pay.

    I don't see what MSE has to 'investigate'. Fixed interest, fixed term ISAs have existed since ISAs (and TESSAs before them) were invented. Variable interest products also exist. You could get one of those and put in whatever you like whenever you like up to the limits of the product.

    There are loads of non-fixed rate accounts which are instant access or have limitations on deposits (£x per month) or withdrawals(y times a year, z days' notice) etc.

    Also there are oodles of promotional offers with high interest current accounts which offer better rates than ISAs anyway if you have not already used them up.
    Last edited by bowlhead99; 14-10-2014 at 10:05 AM.
    • colsten
    • By colsten 14th Oct 14, 10:21 AM
    • 10,293 Posts
    • 9,480 Thanks
    colsten
    • #9
    • 14th Oct 14, 10:21 AM
    • #9
    • 14th Oct 14, 10:21 AM
    Fixed term and fixed rate savings accounts have been around since pre-ISA times, i.e. since the last millenium. The ISA-incarnation of these accounts are just about the tax treatment.

    A fixed term / fixed rate savings account, ISA or not ISA, is a totally different product from an investment fund.

    If you are not happy with locking your savings away for a fixed period of time, you have a vast choice of instant access or short term notice savings accounts, ISA and non-ISA. You will always get less interest in these accounts, as the provider cannot lend your money out longer term because you can ask for it back any time you wish.

    Having said this, Lloyds (and possibly also TSB) do have an ISA product with a fixed rate that allows ongoing deposits. Of course the interest rate of 1.7% to 1.75% is not terribly exciting and can easily be bettered in instant access current accounts.

    Not sure what MSE would "investigate" and why.
    • Pincher
    • By Pincher 14th Oct 14, 10:30 AM
    • 6,516 Posts
    • 2,491 Thanks
    Pincher
    Regular Saver NISA?


    Anyway, with interest rates expected to creep up, why would you want to add to a lower fixed rate from this year?
    • poppy10
    • By poppy10 14th Oct 14, 11:06 AM
    • 6,164 Posts
    • 7,463 Thanks
    poppy10
    Anyway, with interest rates expected to creep up...
    Originally posted by Pincher
    People have been saying that for five years now, still hasn't happened. The European Central Bank has just cut its interest rate - the trend is still downwards rather than upwards.
    • Cap Hero
    • By Cap Hero 14th Oct 14, 11:45 AM
    • 118 Posts
    • 178 Thanks
    Cap Hero
    Interest Rates
    Yep, interest rates look to be going down imo, not up. Europe could be heading into a deflationary period, for good or bad.

    Only time will tell!
    • Heng Leng
    • By Heng Leng 14th Oct 14, 12:45 PM
    • 4,702 Posts
    • 1,533 Thanks
    Heng Leng
    They clearly can't move it into Halifax, BOS or even Birmingham Midshires unless they were also closed to new business as they want to customer base to leave.

    Also, as it's operating as a division of BOS plc, the cost is only a seperate phone number, letter heads etc

    Little point in operating it as a separate brand. Makes no commercial sense. Given the New World that lies ahead in the future for retail banks.
    Originally posted by Thrugelmir
    • Thrugelmir
    • By Thrugelmir 14th Oct 14, 12:59 PM
    • 63,125 Posts
    • 56,030 Thanks
    Thrugelmir
    Also, as it's operating as a division of BOS plc, the cost is only a seperate phone number, letter heads etc
    Originally posted by Heng Leng
    If only.........
    "'The mistakes we make as investors is when the market's going up, we think it's going to go up forever. When the market goes down, we think it's going to go down forever. Neither of those things actually happen. Doesn't do anything forever. It's by the moment.'" - John Bogle
    • kingrulzuk
    • By kingrulzuk 14th Oct 14, 5:23 PM
    • 1,258 Posts
    • 568 Thanks
    kingrulzuk
    Can we save money in foreign country? say like India or Brazil
    What happens if you push this button?
    • bowlhead99
    • By bowlhead99 14th Oct 14, 5:41 PM
    • 8,728 Posts
    • 15,969 Thanks
    bowlhead99
    You can save money wherever you like, although you can't do it in a tax protected wrapper, and won't have UK FSCS compensation scheme to bail you out if the bank runs off with your cash.

    Also, while a Brazillian bank might give you 10%+ on your Reals saved there, it won't give you 10% on pounds sterling because it's using the same international money markets as everyone else. If you buy and save those Reals: you may turn BRL 100 into BRL 110, but if the exchange rate moves from 4:1 to 5:1 over the year, your 100 BRL cost you GBP 25 at the beginning of the year and your 110 BRL is only worth GBP 22 at the end of the year. So even *without* considering forex broker charges and wiring fees, your £25 has LOST over 10% even though the headline says you 'earned' and need to pay tax on, 10 BRLs.

    Ukraine is another good place for nice headline rates from somewhere physically a bit closer to home. You should be able to get a double digit return on Ukrainian Hryvnia saved there but less on Euros or Rubles (those international money markets at work again) and the exchange rate risk together with political risk is ginormous.
    Last edited by bowlhead99; 14-10-2014 at 5:44 PM.
    • Pincher
    • By Pincher 14th Oct 14, 6:49 PM
    • 6,516 Posts
    • 2,491 Thanks
    Pincher
    People have been saying that for five years now, still hasn't happened. The European Central Bank has just cut its interest rate - the trend is still downwards rather than upwards.
    Originally posted by poppy10
    Crude oil down to US$84. I'm actually worrying about high inflation if it keeps dropping. This is if you believe US$100+ oil was depressing economic activity.
    • Thrugelmir
    • By Thrugelmir 14th Oct 14, 6:58 PM
    • 63,125 Posts
    • 56,030 Thanks
    Thrugelmir
    Crude oil down to US$84. I'm actually worrying about high inflation if it keeps dropping.
    Originally posted by Pincher
    Deflation is the problem at the moment on the horizon. A proper recession.
    "'The mistakes we make as investors is when the market's going up, we think it's going to go up forever. When the market goes down, we think it's going to go down forever. Neither of those things actually happen. Doesn't do anything forever. It's by the moment.'" - John Bogle
    • jimjames
    • By jimjames 14th Oct 14, 7:16 PM
    • 13,227 Posts
    • 12,276 Thanks
    jimjames
    so how can you continue to save into your nisa?
    Originally posted by minislim
    Don't use a fixed rate one?

    almost every single one on the market is technically not a savings account!
    its a investment fund!
    Originally posted by minislim
    A fixed rate ISA is definitely NOT an investment fund but is a savings account. Savings have guaranteed capital but investments can vary in value.

    Are you aware the cash ISAs are one of the worst places to put new money as you can get far better returns with current accounts?
    Last edited by jimjames; 14-10-2014 at 8:53 PM.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • PeacefulWaters
    • By PeacefulWaters 14th Oct 14, 7:25 PM
    • 8,316 Posts
    • 10,685 Thanks
    PeacefulWaters
    They clearly can't move it into Halifax, BOS or even Birmingham Midshires unless they were also closed to new business as they want to customer base to leave.

    Also, as it's operating as a division of BOS plc, the cost is only a seperate phone number, letter heads etc
    Originally posted by Heng Leng
    I think the staff in Livingston who have the specialist knowledge needed to maintain customer service cost a tad more than a letter head.

    Not to mention the different processes (e.g. offsetting, jam jars etc) that aren't replicated elsewhere in Lloyds Banking Group.

    It ain't a freebie.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,116Posts Today

6,861Users online

Martin's Twitter
  • Today's Twitter Poll: Will you be voting in tomorrows European elections? If so will it be for a party you've no? https://t.co/YJ9XqAZ8u4

  • This is a very useful and interesting, factual piece about what the PM's new Brexit proposals mean and how new they? https://t.co/qM1bCz6FZp

  • After two cancellations, I'm on the 3rd train back from Manch. Just heard its being rerouted as someone's taken tak? https://t.co/sRO4cvoWIw

  • Follow Martin