Savings interest rate thread

[981Boxess]

Chase going to base rate minus 1.15% from 13th May, so no change as we stand. One way of dealing with it.

So that is Santander and Chase sorted, rest to follow no doubt.

[2HFL]

981Boxess said:

LH. said:

Not opened yet,noticed they have an app also...

I have both a FRB maturing this week and an easy access account, both managed via website perfectly well.

Not everything works better with an App.

The MBNA fixed rate saver I opened can’t be accessed online or via an app. Only by phone

Let’s hope they received my transfer…

[OldSkoolRS]

Had an email from Chip, but that was only to say I can now save £1 million with them instead of 'only' £250,000 if I want.

I'm wondering what the rates (ISA in particular) will go to next month after the start of the new tax year as I have an FRB maturing then and want to move it to an ISA? I could get 5.25% with Virgin at the moment as an existing customer, so hoping they continue that deal.

[The Leaper]

OldSkoolRS said:

I'm wondering what the rates (ISA in particular) will go to next month after the start of the new tax year as I have an FRB maturing then and want to move it to an ISA? I could get 5.25% with Virgin at the moment as an existing customer, so hoping they continue that deal.

Hi OldSKool,

Myself and the wife are in the same position. She has two large FRBs maturing in April and May with historically very low interest rates. so we know she will get a much better deal going forward. However, she will also very likely move into paying income tax in the next fiscal year for the first time since she retired. So, we're watching FRBs and ISAs rates via www.savingschampion.co.uk. I think she is likely to a use a significant part of the maturity values to buy the max with PBs to assist avoid the tax. Bloody fiscal drag!

R.

[OldSkoolRS]

Thanks Leaper...I use Savingschampion too, but can't do anything until the next tax year. I'm pretty much maxed out on the start savings rate for this year and would be over next year if one of my FRBs wasn't maturing in April, so I can't complain.

[DT1975]

We're starting to move the Santander dosh into Vanguard VLS 80.

[Jawls]

DT1975 said:

We're starting to move the Santander dosh into Vanguard VLS 80.

So long as you realise what you’re doing. Cash savings don’t normally compete with mostly equity mixed portfolios, they’ve got different objectives.

[Turbojuice]

Jawls said:

DT1975 said:

We're starting to move the Santander dosh into Vanguard VLS 80.

So long as you realise what you’re doing. Cash savings don’t normally compete with mostly equity mixed portfolios, they’ve got different objectives.

Beat me to it. They are two completely different things. One's a bank account with a guaranteed return, the other is an investment in 80% stocks and 20% bonds so can go down as well as up. As long as you understand this and it matches your risk tolerance, all good.

[DT1975]

Turbojuice said:

Beat me to it. They are two completely different things. One's a bank account with a guaranteed return, the other is an investment in 80% stocks and 20% bonds so can go down as well as up. As long as you understand this and it matches your risk tolerance, all good.

We're fine thanks. Have a six figure sum with Vanguard, it was just about timing the move and this has pressed me into using up what's left of this years allowance. (Inheritance btw)

Next stop is deciding what to do with £125k in NS&I 6.2% in Sept.

[sammyb349]

I just hopped on board with monument. Pays 5% on their easy access. Which is good for now…

[Chicken Chaser]

My Santander account at 5.2% is up in May and the rate drops to 4.2%. I'll have to keep an eye on this thread to switch in a month or so.

[g4ry13]

Looks like Secure Trust have pulled their easy access account.

The rate also seems to have fallen from 5.1% to 4.98% since I opened with them.

[LH.]

g4ry13 said:

Looks like Secure Trust have pulled their easy access account.

The rate also seems to have fallen from 5.1% to 4.98% since I opened with them.

Sure the 5.1% is the yearly figure and equates to 4.98% monthly ?

[g4ry13]

LH. said:

g4ry13 said:

Looks like Secure Trust have pulled their easy access account.

The rate also seems to have fallen from 5.1% to 4.98% since I opened with them.

Sure the 5.1% is the yearly figure and equates to 4.98% monthly ?

[Hants PHer]

g4ry13 said:

LH. said:

g4ry13 said:

Looks like Secure Trust have pulled their easy access account.

The rate also seems to have fallen from 5.1% to 4.98% since I opened with them.

Sure the 5.1% is the yearly figure and equates to 4.98% monthly ?

Looks like 4.98% is the gross rate for monthly interest payments. 4.98 divided by 12 is 0.415% per month. If you had £1000 invested and it earned 0.415% each month (i.e. £4.15) then after 12 months you'd have £1051 (1.00415 to the power 12) - hence an annualised return of £51 or 5.1% - which is 5.1% AER.

Hence 4.98% gross applied monthly is the same is 5.1% AER.

[sniff diesel]

Hants PHer said:

Looks like 4.98% is the gross rate for monthly interest payments. 4.98 divided by 12 is 0.415% per month. If you had £1000 invested and it earned 0.415% each month (i.e. £4.15) then after 12 months you'd have £1051 (1.00415 to the power 12) - hence an annualised return of £51 or 5.1% - which is 5.1% AER.

Hence 4.98% gross applied monthly is the same is 5.1% AER.

Basically compound interest from month to month

[g4ry13]

Hants PHer said:

g4ry13 said:

LH. said:

g4ry13 said:

Looks like Secure Trust have pulled their easy access account.

The rate also seems to have fallen from 5.1% to 4.98% since I opened with them.

Sure the 5.1% is the yearly figure and equates to 4.98% monthly ?

Looks like 4.98% is the gross rate for monthly interest payments. 4.98 divided by 12 is 0.415% per month. If you had £1000 invested and it earned 0.415% each month (i.e. £4.15) then after 12 months you'd have £1051 (1.00415 to the power 12) - hence an annualised return of £51 or 5.1% - which is 5.1% AER.

Hence 4.98% gross applied monthly is the same is 5.1% AER.

Maybe i'm being dense here. But when I set up the account it said 5.1% in the Gross p.a. column. Now it says 4.98%.

Surely they simply just decreased their rate like everyone else. Especially as it seems to be popular (given they pulled the easy access account)

[Teatowell]

g4ry13 said:

Maybe i'm being dense here. But when I set up the account it said 5.1% in the Gross p.a. column. Now it says 4.98%.

Surely they simply just decreased their rate like everyone else. Especially as it seems to be popular (given they pulled the easy access account)

They wouldn’t have been able to change the rate without notifying you. 4.98% Gross paid monthly equates to 5.10% AER.

That particular issue has been taken off sale now.

[Chicken Chaser]

I've got £10k looking for a new home in a month's time..is there anywhere offering over 5% which I can chuck it in for a year?

[Teatowell]

Chicken Chaser said:

I've got £10k looking for a new home in a month's time..is there anywhere offering over 5% which I can chuck it in for a year?

Cynergy paying 5.10% Easy Access, otherwise MBNA are paying 5.27% if you're happy to Fix for the full year.