| Archive for Downsizer For an ethical approach to consumption |
| Barefoot Andrew |
Bradford & Bingley - Internet Saver AccountThe B&B are currently offering 6.4% gross/AER for an instant access, min balance £1 account. See here. Seems pretty good ... any better ones out there?A. |
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| dougal |
Probably cheaper than the other banks will lend to them!
http://news.bbc.co.uk/1/hi/business/7242205.stm And yes, I think Northern Rock *are* offering a higher rate... (EDIT: to the over 50's) |
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| dougal |
And are you fully ISA'd up? | ||||
| Blue Peter |
Well, a few things to think about. Both B&B and Alliance and Leicester (A&L) were sort of Northern Rock mini-mes. They were not as aggressive as Crock, but they were into the same sort of game - funding mortgages by securitisation. That game is now over, so they are now rather reliant on savers' deposits (which explains the relatively attractive rates). Indeed, since banks are currently scrambling for capital, higher rates mean a greater scramble and so more risk.
Also, in the new world of house price deflation, banks like B&B and A&L (aka one trick ponies) are going to find their markets a lot smaller. It will be interesting to see how they adjust to the new world - I believe that both have had concerns over future funding. B&B is particularly into BTL (funding buy-to-let-ers), a market that is likely to sharpely contract over the next few years. Peter. |
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| Treacodactyl |
That's what I was going to say although worth checking the ISA rate is as good as a savings account when adjusted for tax. Other thing to think about is to pay off the mortgage/loans. There are regular savings accounts that pay more, e.g. 12% from A&L, although too many strings attached for me. It's worth checking the various money sites or news paper financial sections etc for the latest rates and deals. |
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| JB |
Ah! This is based on the wild assumption of having spare money isn't it? |
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| Barefoot Andrew |
No ISAs at all at the moment - I'll sort this out in due course, and my current pot of cash isn't for medium term or longer investments. I need immediate access for the time being.
A. |
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| dougal |
Mini Cash ISA can give immediate access. Interest being tax-free makes it better than ordinary savings account - you get more interest! The thing that they are not ideal for is 'tidal' money that needs to come and go. There is a one way turnstile limit to the amount of money that can go *in* in any financial year. (£3k this tax year, £3k6 next.) So, if it comes out, it reduces the amount that you potentially can have in the magic tax-free kingdom of ISAland! |
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| Barefoot Andrew |
Yes, I know, but...
...this is what I meant. Good description! A. |
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| Fee |
We've got a mortgage, we don't really do savings anymore , any extra goes on the mortgage. | ||||
| JB |
Up until last year that was what I was doing; overpaying against the mortgage rather than saving as I could draw down against the mortgage if I ever needed some of that money. OK some of the mortgage is used for capital repayment but that makes it work effectively as a deposit account paying 7% (ish) - far better than any saving accounts on offer even the ISAs.
The other thing I noticed is that if you don't keep an eye on the rates then the ISA rates can be cut dramatically when you're not looking. The last ISA I had I closed when they cut the rate on it such that the gross rate on the ISA was less than the net rate on another account. |
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| dougal |
Its a long way away from Instant access savings, but generally reducing the mortgage is very sensible -- but -- - some mortgages don't actually apply the overpayments until the end of the mortgage-year. In which case, you're best sticking it in a savings account (inc ISA) so that you get the benefit of the interest before paying off (just a little more than you expected of) mortgage capital immediately before the mortgage-year-end. - and this is handled most gracefully and flexibly by an "offset" mortgage, which usually being recalculated daily, maximises the benefit of any even short term positive cashflows. |
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| Fee |
Hmm...I mostly leave Paul to deal with that, so I'm not sure when it's calculated, but I'll mention it to him tonight! The only thing I know about it is that we don't have any repayment charges if it's under £10k a year extra, we're currently paying about an extra 40% off each month!
It's going down, slowly 
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| Treacodactyl |
Some flex mortgages let you put money in and take it out just as quick as a savings account. |
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| lottie |
Re: Bradford & Bingley - Internet Saver Account
West Brom had 6.55%---but not looked for a few days and rates are dropping generally edit--- just checked it's still 6.55% and guaranteed to be at least B.R.+0.5% until next feb. |
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| Barefoot Andrew |
I've decided to hold fire on opening any of these accounts for the moment.. the money is tidal (excellent Dougal term) and I find the three days "clearing period" between institutions annoying.
A. |
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| Treacodactyl |
Although the interest rate isn't grate I have a savings account from the same people that do my current account and transfers are instant. | ||||
| Barefoot Andrew |
S'wot I have too. I also have a savings account tied to my business account with the same bank; better interest rate than for consumers, and transfers between all of my accounts are instant as you say. I'll stick with these arrangements for now.
A. |