Savings interest rate thread

[lost in espace]

I get 5.6% with RCI Bank 90 day notice, just got notification dropping to 4.95% from April.

[Legacywr]

Anybody with Marcus?

https://www.marcus.co.uk/uk/en/savings

[981Boxess]

We’re writing to let you know we will be reducing the rate on your Ford Money Flexible Saver account effective 21 February 2024 as follows:

Current rate New lower rate
4.75% Gross 4.51% Gross

[981Boxess]

Shawbrook Easy Access down from 5.11%AER to 5.00%AER from 5/3/2024

[Chainedtomato]

981Boxess said:

Shawbrook Easy Access down from 5.11%AER to 5.00%AER from 5/3/2024

Matter of time before it happened, suspect over the coming weeks there will reductions across the board

[RATATTAK]

Tandem down 0.1% to 4.9% starting March. Equivalent to £20/year on £20K, so no biggy.

[Funk]

Metro dropping their rate:

"We’re getting in touch to let you know that following a review, we’ve decided to decrease the variable Limited Edition rate(s) on the following account(s) on 22nd April 2024:

Online Instant Access Savings, account number ending in XXXX with a current Limited Edition rate of 5.22% AER* will decrease to a new Limited Edition rate of 4.97% AER*."

[brickwall]

Monument have just put their rates up slightly: 5.08% AER to 5.11% for the instant access account.

[3xAAA]

Funk said:

Metro dropping their rate:

"We’re getting in touch to let you know that following a review, we’ve decided to decrease the variable Limited Edition rate(s) on the following account(s) on 22nd April 2024:

Online Instant Access Savings, account number ending in XXXX with a current Limited Edition rate of 5.22% AER* will decrease to a new Limited Edition rate of 4.97% AER*."

I got the same email. I enjoyed it while it lasted.

[981Boxess]

Funk said:

Metro dropping their rate:

Online Instant Access Savings, account number ending in XXXX with a current Limited Edition rate of 5.22% AER* will decrease to a new Limited Edition rate of 4.97% AER*."

Probably just enough to save them a few quid and not enough to prompt savers to leave.

[Teatowell]

981Boxess said:

Probably just enough to save them a few quid and not enough to prompt savers to leave.

I think they’re in a vastly overfunded position based on their inability to implement front book changes until mid January. So this is the response to that I beleive. Expect more to come if their new front book rates are anything to go by. I’ve also heard there’s a potential pivot now to reduce the retail element of their balance sheet and go after SME following the restructure so may also be in evidence.

[981Boxess]

Teatowell said:

981Boxess said:

Probably just enough to save them a few quid and not enough to prompt savers to leave.

I think they’re in a vastly overfunded position based on their inability to implement front book changes until mid January. So this is the response to that I beleive. Expect more to come if their new front book rates are anything to go by. I’ve also heard there’s a potential pivot now to reduce the retail element of their balance sheet and go after SME following the restructure so may also be in evidence.

I don't doubt for one second your logic is sound, but lets face it any banks paying top rates could reduce them a bit without losing any savers and slowly they will, at the end of the day they are still in the business of making money.

[NRG1976]

Teatowell said:

981Boxess said:

Probably just enough to save them a few quid and not enough to prompt savers to leave.

I think they’re in a vastly overfunded position based on their inability to implement front book changes until mid January. So this is the response to that I beleive. Expect more to come if their new front book rates are anything to go by. I’ve also heard there’s a potential pivot now to reduce the retail element of their balance sheet and go after SME following the restructure so may also be in evidence.

I don’t understand your response, please can you explain?

What inability to implement front book changes until January?

Vastly overfunded - I thought they just had to do a massive debt refinancing exercise, given their current rates I don’t they are behaving like they have an excess of deposits?

[Teatowell]

NRG1976 said:

I don’t understand your response, please can you explain?

What inability to implement front book changes until January?

Vastly overfunded - I thought they just had to do a massive debt refinancing exercise, given their current rates I don’t they are behaving like they have an excess of deposits?

You’re confusing capital with liquidity. Metro held best buy rates across most savings market segments through from December to mid January, I think part due to an inability/difficulty in affecting updated interest rates and reduce pricing on new products more in line with market. To that end in my view I expect they’ll have raised a significant excess of deposits far beyond their liquidity requirement which are not needed. In my view they’re now affecting changes to reduce that liquidity excess position and reduce interest expense. Logically it doesn’t make sense to be absolute top of market and then to move to the other extreme across that time frame, and now be implementing out of cycle rate reductions, of which I expect more to follow.

Capital position and recent difficulty/restructure is something completely seperate.

Edited by Teatowell on Wednesday 21st February 14:39

Edited by Teatowell on Wednesday 21st February 14:39

[asfault]

btw for anyone with one or just open one up t212 pays 5.2% interest daily on uninvested cash.

Is tht the best in the market right now an actual stocks and shares account?

[Miocene]

T212 is the best i've seen, but careful of the savings tax limits of course.

[bmwmike]

asfault said:

btw for anyone with one or just open one up t212 pays 5.2% interest daily on uninvested cash.

Is tht the best in the market right now an actual stocks and shares account?

Tax free too

[CSLM3CSL]

I saw the t212 and was concerned if was a bit risky. Looks like the money is invested in money market funds.

[981Boxess]

bmwmike said:

asfault said:

btw for anyone with one or just open one up t212 pays 5.2% interest daily on uninvested cash.

Is tht the best in the market right now an actual stocks and shares account?

Tax free too

Why would it be tax free (genuine question)

Or are we assuming the unused cash is sitting inside an ISA wrapper, as opposed to unused trading funds.

[mikey_b]

981Boxess said:

Why would it be tax free (genuine question)

Or are we assuming the unused cash is sitting inside an ISA wrapper, as opposed to unused trading funds.

Maybe it’s so risky it’s classed as winnings from gambling?