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    savings interest rates

    i have a garanteed savers account with halifax when i opened it bout year and half ago it was bout 5% interest rate just been looking into opening a seperate savings account and just realised that the rate has gone to 0.5 now how bad is that what do u think i should do change it now or wait till nov when the year is up and i get my interest for the year then change it? cheers for advice not really clued up on this sort of thing when they set it up and said it was varible i thought they ment that the interest would go down if i took many withdrawels out not that they can change it when they please

    20 Comments

    hi bellows, check the T&c's of the account you currently have, when you close an account you should get the interest up to the day it was closed so you do not need to keep it in there for the whole year to recieve the current accrued interest

    what ive done is opened a fixed saver account and they average on about 4% for one year, so if you can not touch the money for a year atleast id suggest a fixed rate account

    edit: your allowed 4 withdrawals per year, close the account ,waste of time having money in there

    open a fixed rate ccount or have a look on MSE to see what the top paying savings account currently is

    Banned

    Lloyds TSB are doing a 5% monthly savings account £250 per month max though

    Depends on whether you want to lock it away for 1-5 years or whether you need access to it.

    Take a look ]here for best buys and advice.

    Personally I wouldn't lock money away for more than 2 years as interest rates will probably improve in a years time.

    Original Poster

    its a little nest egg i saved up couple years ago but dont really save much now since i moved into my flat as the bills and rent take 80% of my wages but not sure if i want to lock it away for a period of time as i need it for a deposit for morgage if i find a flat locally for good price

    Original Poster

    ment to press edit not quote

    Banned

    I wouldn't lock it in now, wait till interest rates go up again. My personal opinion is end of the year

    You're better investing in an ISA, do you know anything about an ISA investor? If not arrange a meeting with your financial advisor at Halifax (it's free) and they will give you a lot of advice and recommendations for you. I had one today and it definately benefitted me!

    Banned

    Spriggan;5510471

    You're better investing in an ISA, do you know anything about an ISA … You're better investing in an ISA, do you know anything about an ISA investor? If not arrange a meeting with your financial advisor at Halifax (it's free) and they will give you a lot of advice and recommendations for you. I had one today and it definately benefitted me!



    Don't they only advise on Halifax products or Lloyds TSB too?

    I think they will only advise on Halifax products however as Lloyds TSB owns Halifax I would imagine that they would offer the service as well.

    lumoruk;5509940

    I wouldn't lock it in now, wait till interest rates go up again. My … I wouldn't lock it in now, wait till interest rates go up again. My personal opinion is end of the year



    so earn about 0.5% interest as the OP is and HOPEFULLY at the end of year interest will increase?.... not the best idea IMO

    4% fixed is still very good, before the massive drop 6.5% is not all that much bigger which even then will be ages to that type of rate if ever again.

    Banned

    how can it be a guaranteed rate if they have reduced it to 0.5%?

    just close the account as all interest accrued will then become payable.

    and jack is right, get a 4% 6 month fix as i cant see rates going up anytime soon

    right before the interest rate plunge I got half my savings into a 6% fixed interest rate bond at the abbey :-D

    Spriggan;5510471

    You're better investing in an ISA, do you know anything about an ISA … You're better investing in an ISA, do you know anything about an ISA investor? If not arrange a meeting with your financial advisor at Halifax (it's free) and they will give you a lot of advice and recommendations for you. I had one today and it definately benefitted me!



    My ISA is paying 0.25%!!!!! :x

    Banned

    micoo;5524606

    right before the interest rate plunge I got half my savings into a 6% … right before the interest rate plunge I got half my savings into a 6% fixed interest rate bond at the abbey :-D


    7.36% tax free on £50,000 at bham Midshires (until nov) :-D

    csiman;5524577

    how can it be a guaranteed rate if they have reduced it to 0.5%?just … how can it be a guaranteed rate if they have reduced it to 0.5%?just close the account as all interest accrued will then become payable.and jack is right, get a 4% 6 month fix as i cant see rates going up anytime soon



    There are no 4% 6-month fixed rates that I know of. Shortest 4% fixed rate is the AA @ 4.01% AER. which is 16 month fix as far as I'm aware.

    P.S My money is tied up @ 7.3% with the AA until October 2009

    Original Poster

    Spriggan;5510471

    You're better investing in an ISA, do you know anything about an ISA … You're better investing in an ISA, do you know anything about an ISA investor? If not arrange a meeting with your financial advisor at Halifax (it's free) and they will give you a lot of advice and recommendations for you. I had one today and it definately benefitted me!



    cheers rep left :thumbsup:

    Original Poster

    cheers everyone soz for late reply but worked 13hrs yesterday so no time to come on here i think i will set up a meeting for next week and tie it up for a year maybe

    Original Poster

    jackvdbuk;5509585

    hi bellows, check the T&c's of the account you currently have, when you … hi bellows, check the T&c's of the account you currently have, when you close an account you should get the interest up to the day it was closed so you do not need to keep it in there for the whole year to recieve the current accrued interestwhat ive done is opened a fixed saver account and they average on about 4% for one year, so if you can not touch the money for a year atleast id suggest a fixed rate account :)edit: your allowed 4 withdrawals per year, close the account ,waste of time having money in thereopen a fixed rate ccount or have a look on MSE to see what the top paying savings account currently is



    rep left

    I always thought mine was fixed & noticed recently its gone down to 0.5% from 6%?

    stgeorge;5526551

    I always thought mine was fixed & noticed recently its gone down to 0.5% … I always thought mine was fixed & noticed recently its gone down to 0.5% from 6%?



    i bet the banks makes thousands and thousands becuase of this, they love it!
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