Club Lloyds and BOS dropping rates to 1.5% on 1st July
Comments
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Seems quite odd that they could sustain their old rates when the Bank Rate was as low as 0.25% and are reducing their rates just when the Bank Rate might well have gone up to 0.75%..
Current account rates were never particularly closely linked to Bank of England base rate. The fact that you could only deposit so much is a clue that they were short-term perks designed to attract a customer. You only need to look at the market to see a general drop in rates offered by current accounts.
I think Tesco current account is the only one that hasnt dropped yet in the last few years, and they published that their 3% rate is guaranteed until April 2019 I think. Guess what will happen after that!!0 -
I spent most of yesterday mulling this over in my head after quinquereme kindly brought it to the forum on Friday night.
I think this will start a race to the bottom in relation to the rates being offered. on that bases I've already jumped. The money in the 6 BOS accounts is on its way to 2 new Nationwide Loyalty ISA's and instigated a switch in order two close the accounts. The money in two club Lloyds accounts is now in a new Tesco's account at 1.3 % in my wife's name and switch instigated. The third joint account I shall maintain for the regular savers but with a minimal balance. This means we can loose nearly all our DD's cutting the amount of faffing and brings me below the £1000 interest threshold.0 -
Six BOS and two Club Lloyds sounds like £5k x 8 = £40k.ceredigion wrote: »The money in the 6 BOS accounts is on its way to 2 new Nationwide Loyalty ISA's and instigated a switch in order two close the accounts. The money in two club Lloyds accounts is now in a new Tesco's account at 1.3 % in my wife's name
Just out of curiosity, why do you keep this sort of amount in instant access cash accounts?
I am not one of the S&S brigade (quite the opposite but they do have me questioning my decisions) but just trying to find others' reasons for holding large amounts in cash.0 -
Six BOS and two Club Lloyds sounds like £5k x 8 = £40k.
Just out of curiosity, why do you keep this sort of amount in instant access cash accounts?
I am not one of the S&S brigade (quite the opposite but they do have me questioning my decisions) but just trying to find others' reasons for holding large amounts in cash.
Zanderwoman and I have similar amounts to ceredigion in current/instant access accounts. For us it's a wariness of S&S (though like you they do make me question my logic now and then) but primarily because we plan to move to a more expensive property in the next year or two, so we want easy straightforward access to our cash. Having said that we've had that plan for a a year or two now, so with hindsight could have locked some away - and indeed are starting to do that with more now.
As for this current situation with BoS and Llloyds lowering the rate from 2% to 1.5% we had already moved some away from BoS and Lloyds because of the Tesco DD situation affecting some of the accounts. Some has gone to 3 year fixed rate accounts. The rest, I don't know yet. NatWest Savings Builder looks less hassle for 1.5% than BoS and Lloyds so if only getting 1.5% we might go there, at least to start with. Already have TSB, Tesco and 123 etc and weary of the faff of regular savers even though they add a lot, particularly if fed from 123.0 -
Six BOS and two Club Lloyds sounds like £5k x 8 = £40k.
Just out of curiosity, why do you keep this sort of amount in instant access cash accounts?
I am not one of the S&S brigade (quite the opposite but they do have me questioning my decisions) but just trying to find others' reasons for holding large amounts in cash.
As I said in another thread the other day. We do have a investment portfolio and as a percentage of total asset the cash element is sensible . Don't put all your eggs in one basket.0 -
ceredigion wrote: »I spent most of yesterday mulling this over in my head after quinquereme kindly brought it to the forum on Friday night.
I think this will start a race to the bottom in relation to the rates being offered. on that bases I've already jumped. The money in the 6 BOS accounts is on its way to 2 new Nationwide Loyalty ISA's and instigated a switch in order two close the accounts. The money in two club Lloyds accounts is now in a new Tesco's account at 1.3 % in my wife's name and switch instigated. The third joint account I shall maintain for the regular savers but with a minimal balance. This means we can loose nearly all our DD's cutting the amount of faffing and brings me below the £1000 interest threshold.
Why didn't you wait until the rate actually changed? All you have achieved is to reduce the amount of interest you will earn over the next couple of months. The Nationwide Loyalty ISA will pay you 1.4%, rather than 2% and the money in the Tesco accounts will pay you 1.3%, rather than 2%, so you have cost yourself £52.74:
BOS to Nationwide = £37.98 (BOS = £126.58; Nationwide = £88.60)
Lloyd's to Tesco = £14.76 (BOS = £42.19; Tesco = £27.43).
This rather seems like cutting off your nose to spite your face.0 -
As for this current situation with BoS and Llloyds lowering the rate from 2% to 1.5% we had already moved some away from BoS and Lloyds because of the Tesco DD situation affecting some of the accounts. Some has gone to 3 year fixed rate accounts. The rest, I don't know yet. NatWest Savings Builder looks less hassle for 1.5% than BoS and Lloyds so if only getting 1.5% we might go there, at least to start with. Already have TSB, Tesco and 123 etc and weary of the faff of regular savers even though they add a lot, particularly if fed from 123.
Regular savers aren't much of a faff. You set up a standing order and it runs itself.0 -
It's a shame they are dropping the interest rates again. Will probably loose them some customers.
I was also reading about the changes to the benefits of the Platinum account and the increase in the monthly fee. Only the Platinum account is mentioned. I hold a premier account. Will my £25 fee also increase? Will the changes to the benefits of the Platinum account so extensively detailed in the guide to charges also apply to premier accounts? They are not mentioned at all.0 -
Six BOS and two Club Lloyds sounds like £5k x 8 = £40k.
Just out of curiosity, why do you keep this sort of amount in instant access cash accounts?
I am not one of the S&S brigade...
What would you do if you had £40k spare cash? You don't like S&S; I don't like fixed term accounts paying little more than instant access when rates might rise soon.0 -
At least now I won't have to make sure my Vantage account doesn't drop below £5000 when I transfer the excess to my Santander 123 account.
Now I can transfer all my pension on Monday and not bother about putting the £5 and £34 DDs that come out 2 days later, back.over 73 but not over the hill.0
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