Interest Rates

[midlife]

Some decent rates from Coventry Building Society, eg 4.4% on a one year (ish) bond
https://www.coventrybuildingsociety.co.uk/member/savings/fixed-rates.html
and apparently can have interest paid out monthly

Thank goodness I have no savings so don't have to worry about this sort of thing.....

 

[SpokeyDokey]

Must admit I am more a fan of face to face in branch transactions when handing over a lump of my hard earned!

Genuine question - what's the logic there?

 

[gbb]

Genuine question - what's the logic there?

In my case, trying to stem the gradual loss of face to face transactions In many facets of our lives.
There is no logic IMO, just a preference, a clinging on to what we like or know, its comforting in a small way, sometimes its just awkwardness (passed several empty self service tills in a shop today to take my place in a small queue so I could be served by someone, anyone)

 

[chris-suffolk]

Cynergy bank just e-mailed me to say their easy access savings account now paying 2.75% - so matches the Santander one that I'm still waiting a 'passcode' for, so that will be redundant now. Just TOO time consuming to keep moving money around for the best rates, but have to do it. I guess they assume most are too lethargic to bother, hence why so many people are getting next to nothing on their savings, as per news item today.

 

[Chislenko]

Genuine question - what's the logic there?

I think @gbb sums it up perfectly so I don't need to type it all out!!

Thanks @gbb 😊

 

[nickyboy]

Cynergy bank just e-mailed me to say their easy access savings account now paying 2.75% - so matches the Santander one that I'm still waiting a 'passcode' for, so that will be redundant now. Just TOO time consuming to keep moving money around for the best rates, but have to do it. I guess they assume most are too lethargic to bother, hence why so many people are getting next to nothing on their savings, as per news item today.

That's exactly what happens. In effect, the lethargic are paying the active with the bank being the conduit for the flow of this money

 

[chris-suffolk]

That's exactly what happens. In effect, the lethargic are paying the active with the bank being the conduit for the flow of this money

Makes me wonder whether savers are influencing the rates though.

If loads of people flock to get the latest high rate, then that lender has loads of money to lend out, and thus they make a good profit. Along comes another lender, at a higher rate, and most people move their money again (they moved it to start, so will continue moving each time). Thus the first lender now has a shortfall of disposable cash to meet liabilities, and may have to increase their rates to get people to move their money back again. Or is this too simplistic?

The trick is going to be predicting peak, so that instead of easy access accounts, the money (or at least some of it) can be moved to a fixed rate one. There's little point right now with rates rising so fast, but that will eventually stop.

 

[Buck]

Higher rate savings products are usually linked to a total value i.e. £23,000,000 which has been linked to the amount of lending the financial institution is due to lend.

The savings deposited service this loan amount (“book”) and the interest paid to savers is higher as a mechanic of the lending rate being offered itself being higher.

 

[vickster]

I’ve signed up for the Santander deal for now so thanks for flagging, will consolidate the funds from a couple of lower interest paying savings accounts.
I’ve also suggested to a friend who basically has too much money sitting in her current account!

 

[chris-suffolk]

I’ve signed up for the Santander deal for now so thanks for flagging, will consolidate the funds from a couple of lower interest paying savings accounts.
I’ve also suggested to a friend who basically has too much money sitting in her current account!

Problem is, there are far too many people (such as my parents) who just leave money in accounts paying paltry amounts of interest. At least in part because they've never heard of banks like 'Cynergy' or 'Tandem' or whatever, so just don't bother. It's people like that, that the lenders rely upon.

For me, it's getting to be a full time job trying to keep up with the latest rises.

Going to be worth paying particular attention now that Truss has sacked Kwasi and reversed the corporation tax cuts, as that might stabalise things and cause rates to start to fall again. Then again, it might not.

 

[Buck]

I opened the Santander e-saver account earlier in the week and (probably due to already having a Santander account) it was set up in less than 5 minutes.
Monies transferred and at least it will get some interest now!

 

[SpokeyDokey]

European Central Bank has raised rates by 0.75% today.

USA will almost certainly raise their's next Weds and BoE ours the day after.

Good for some and grim for others.

 

[BoldonLad]

Each partner having separate accounts is very stone age, I suppose it might help hiding a 'bike' addiction (swap word bike for alcohol/Hornby/control freakery/whatever) and that realisation explains all the neanderthal blokes I know/knew who still have! it that way (my dad definitely a control freak, but also of an age when it was 'normal'). I don't know any major wage earners/sole breadwinner (insert excuse here) that approaches 50% of the work of a family unit.

We have separate accounts, with a joint account for bills. No secrecy involved. It works perfectly well for us. If other people wish to have totally joint finances, so, be it, no business of mine.

 

[Jenkins]

Isn't there a limit on the amount of interest you can get on savings before it becomes liable to tax? I seem to remember a £1000 figure which (for some) may quite easily be exceeded with the higher rates available now.

 

[Jameshow]

We have separate accounts, with a joint account for bills. No secrecy involved. It works perfectly well for us. If other people wish to have totally joint finances, so, be it, no business of mine.

Is this debate still going!!🤣🤣🤣🤣

If have separate ACC then must be something dodgy going on!!🔥🔥🔥🔥