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    • Jonbvn
    • By Jonbvn 30th Jul 10, 9:46 AM
    • 5,355 Posts
    • 5,643 Thanks
    Jonbvn
    • #2
    • 30th Jul 10, 9:46 AM
    • #2
    • 30th Jul 10, 9:46 AM
    The Coventry account looks good.

    http://www.coventrybuildingsociety.co.uk/savings/productfeatures.aspx?ProdCode=GTB1

    I think I will be moving over money from Investec High 5, whose rate now looks quite poor.

    Wouldn't touch shabby abbey with a bargepole.
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot
  • pressuredrop
    • #3
    • 30th Jul 10, 9:53 AM
    • #3
    • 30th Jul 10, 9:53 AM
    The Coventry account looks good.
    Originally posted by Jonbvn
    The base rate rises to 1% and the Coventry product stays the same?

    It may be good for the Coventry but not for me. I want a tracker that tracks.

    I admire the Coventry for getting cheap funding though.
    • Lokolo
    • By Lokolo 30th Jul 10, 9:55 AM
    • 20,104 Posts
    • 15,244 Thanks
    Lokolo
    • #4
    • 30th Jul 10, 9:55 AM
    • #4
    • 30th Jul 10, 9:55 AM
    The base rate rises to 1% and the Coventry product stays the same?

    It may be good for the Coventry but not for me. I want a tracker that tracks.

    I admire the Coventry for getting cheap funding though.
    Originally posted by pressuredrop
    The only reason it stays the same is because there's a minimum rate. So if the base rate should fall to 0%, the tracker wouldn't go down, it would stay at a minimum of 3.2%. If the base rate goes beyond 1% then you will be tracking.
    • Jonbvn
    • By Jonbvn 30th Jul 10, 10:58 AM
    • 5,355 Posts
    • 5,643 Thanks
    Jonbvn
    • #5
    • 30th Jul 10, 10:58 AM
    • #5
    • 30th Jul 10, 10:58 AM
    I admire the Coventry for getting cheap funding though.
    Originally posted by pressuredrop
    As the equilvalent of a 90-day notice account (you pay a 90-day interest on withdrawals penalty), it is not bad at 3.2%. The tracking facility offers some degree of insurance.
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot
  • opinions4u
    • #6
    • 30th Jul 10, 11:01 AM
    • #6
    • 30th Jul 10, 11:01 AM
    I admire the Coventry for getting cheap funding though.
    Originally posted by pressuredrop
    There is nothing cheap about funding their business at 2.2% above BofE.

    The account will be a loss-leader.
    • Reaper
    • By Reaper 30th Jul 10, 12:42 PM
    • 6,485 Posts
    • 4,840 Thanks
    Reaper
    • #7
    • 30th Jul 10, 12:42 PM
    • #7
    • 30th Jul 10, 12:42 PM
    I think I will be moving over money from Investec High 5, whose rate now looks quite poor.
    Originally posted by Jonbvn
    Not necessarily. I'm not sure about the Santander account but the Coventry one should certainly qualify to be one of the top 5 so will help lift the High 5 interest rate.

    The High 5 will never be the top paying account - the idea was always to save you having to keep moving money around.
    • Mickygg
    • By Mickygg 30th Jul 10, 12:59 PM
    • 1,463 Posts
    • 1,222 Thanks
    Mickygg
    • #8
    • 30th Jul 10, 12:59 PM
    • #8
    • 30th Jul 10, 12:59 PM
    I first thought this was good - but then of course there was the catch - only tracks after BB goes above 1%. This is not a tracker then.

    I have read reports that interest rates may rise etc etc but by the end of 2011 the general feel is that interest rates could be in the region of 1-2%, and no higher. Obviously everyone has their views on this.

    Banks and BS's aren't silly - no-one would offer this if they thought base rates would rocket!!

    I don't think these are good as base rates in the short term are not going to increase.
    • Lokolo
    • By Lokolo 30th Jul 10, 1:06 PM
    • 20,104 Posts
    • 15,244 Thanks
    Lokolo
    • #9
    • 30th Jul 10, 1:06 PM
    • #9
    • 30th Jul 10, 1:06 PM
    I first thought this was good - but then of course there was the catch - only tracks after BB goes above 1%. This is not a tracker then.

    I have read reports that interest rates may rise etc etc but by the end of 2011 the general feel is that interest rates could be in the region of 1-2%, and no higher. Obviously everyone has their views on this.

    Banks and BS's aren't silly - no-one would offer this if they thought base rates would rocket!!

    I don't think these are good as base rates in the short term are not going to increase.
    Originally posted by Mickygg
    It is a tracker. Just happens that the minimum rate is above the current base rate.

    Mortgages are exactly the same, are they therefore not trackers because they stop at a certain point?
    • Jonbvn
    • By Jonbvn 30th Jul 10, 1:26 PM
    • 5,355 Posts
    • 5,643 Thanks
    Jonbvn
    I first thought this was good - but then of course there was the catch - only tracks after BB goes above 1%. This is not a tracker then.
    Originally posted by Mickygg
    Yes it is! In mortgage terms it would be called a collared tracker.
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot
    • Jonbvn
    • By Jonbvn 30th Jul 10, 1:32 PM
    • 5,355 Posts
    • 5,643 Thanks
    Jonbvn
    The High 5 will never be the top paying account - the idea was always to save you having to keep moving money around.
    Originally posted by Reaper
    I do understand. However, the High 5 account has now been below 3% for an extended period, whereas this account is guaranteed to pay at least 3.2% for 2 years, and will rise with the base rate.
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot
    • Mickygg
    • By Mickygg 30th Jul 10, 3:47 PM
    • 1,463 Posts
    • 1,222 Thanks
    Mickygg
    It is a tracker. Just happens that the minimum rate is above the current base rate.

    Mortgages are exactly the same, are they therefore not trackers because they stop at a certain point?
    Originally posted by Lokolo
    Nope it's not a plain tracker - A tracker savings or mortgage is just that - it tracks the base rate with no catches. Ones that stop at a certain point are called floor or collar trackers - there is a difference.
    • savetilibleed
    • By savetilibleed 31st Jul 10, 12:15 AM
    • 1,348 Posts
    • 326 Thanks
    savetilibleed
    The Coventry account looks good.

    http://www.coventrybuildingsociety.co.uk/savings/productfeatures.aspx?ProdCode=GTB1

    I think I will be moving over money from Investec High 5, whose rate now looks quite poor.

    Wouldn't touch shabby abbey with a bargepole.
    Originally posted by Jonbvn
    Or there's their 2 yr fixed rate bond at 3.70%. BOE rate would need to rise to 1.5% to make them equal now or very soon.
    • alanq
    • By alanq 31st Jul 10, 1:08 AM
    • 4,154 Posts
    • 2,730 Thanks
    alanq
    The 3.7% bond allows no access. The tracker allows access with 90 days loss of interest.
    • Milarky
    • By Milarky 31st Jul 10, 9:03 AM
    • 6,290 Posts
    • 2,209 Thanks
    Milarky
    Quick estimate: Base rate has to average at least 1.8% between now and 24 months time (if compared to best 2 year bond available). Some scenarios

    Jul n/c
    Aug n/c
    Sep n/c
    Oct +0.25 [n/c]
    Mar +0.25 [n/c]
    Jun +0.25 --> 3.55%
    Sep +0.25 --> 3.8%
    Feb +0.25 --> 4.05%
    Sep +0.25 --> 4.3% [but 'matures' in Aug, so this has no effect]

    Thus I'm seeing a base rate of 2% in 2 years under this scenario and something tells me even that is a bit 'sudden' the way the MPC is playing for time.

    To even average 1.8% in the next 24 months base rate rising, at 0.25% each time, would have to get to about 3% by then. That's 10 rises - about one every two months [t'aint going to happen]
    .....under construction....
  • ninky
    my mortgage is base rate plus 0.49 percent tracker. so this looks like a good deal compared to overpayments.

    any other catches other than 90 day notice? i guess you have to pay tax on the interest.
    Those who will not reason, are bigots, those who cannot, are fools, and those who dare not, are slaves. - Lord Byron
    • Milarky
    • By Milarky 3rd Aug 10, 4:41 PM
    • 6,290 Posts
    • 2,209 Thanks
    Milarky
    my mortgage is base rate plus 0.49 percent tracker. so this looks like a good deal compared to overpayments.

    any other catches other than 90 day notice? i guess you have to pay tax on the interest.
    Originally posted by ninky
    The obvious one to consider is whether your fixed rate deal term is as long as (or longer than) the term on this particular product? Also, possible 'overpayments' spread over over two years in the meantime can't be compared to making a (single) fixed term deposit at the outset.
    .....under construction....
    • KTF
    • By KTF 9th Aug 10, 1:51 PM
    • 4,726 Posts
    • 1,940 Thanks
    KTF
    Does anyone have the link to the Santander account on their site as I have had a look but cant find it.
    • Tony Geo
    • By Tony Geo 9th Aug 10, 8:38 PM
    • 63 Posts
    • 42 Thanks
    Tony Geo
    I think its not an on line account. Only available at a Branch in person, Santander have been doing this recently. I blame their !!!! computer system.
    • KTF
    • By KTF 9th Aug 10, 8:40 PM
    • 4,726 Posts
    • 1,940 Thanks
    KTF
    I just wondered if it classed as an 'investment' as a doorway into the Zero current account.
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