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TheCountOfNowhere

Change To Interest Rates: Shawbrook Bank

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With effect from Friday evening 14th November, we will be withdrawing from sale the following products:


2 Year Fixed Rate Bond Issue 23 paying 2.12% AER

120 Day Notice Personal Issue 20 paying 1.60% AER

These products will be replaced with:

2 Year Fixed Rate Bond Issue 25 paying 2.25% AER

120 Day Notice Personal Issue 22 paying 1.75% AER

Has the tide finally turned ?

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One swallow doth not make a summer...

Do two Swallows make a Summer though? I've got a small savings account with them and they emailed me a couple of months before this latest email, announcing they were upping their rate. It was a 0.07 change IIRC. I didn't say anything about it at the time on here, as I thought they'd made a mistake!

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True, a better sign than a spit.

I got a spit letter today from tesco bank. Down from 0.7 to 0.6 or some such. I don't care, the account is just a source of direct debits to satisfy high interest current account T&Cs.

I do look forward to a good swallow though!

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When the announcement was made that FLS was ending, I looked at the bumper amounts banks took in the last quarter it was available and compared it to average mtg amounts and monthly lending figures. By my back of the envelope calculations, there was enough there to last the banks until roughly Q4 this year, which is where we are now. If the funds are drying up, from past memory, there should be a noticeable uptick in rates over a brief two to three month period. Before FLS, rates on Easy Access accounts were 3% or so - currently they are half that. No doubt somebody out there has a far more rigorous analysis available than this...

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When the announcement was made that FLS was ending, I looked at the bumper amounts banks took in the last quarter it was available and compared it to average mtg amounts and monthly lending figures. By my back of the envelope calculations, there was enough there to last the banks until roughly Q4 this year, which is where we are now. If the funds are drying up, from past memory, there should be a noticeable uptick in rates over a brief two to three month period. Before FLS, rates on Easy Access accounts were 3% or so - currently they are half that. No doubt somebody out there has a far more rigorous analysis available than this...

That makes sense. FLS halved savings rates when it was introduced, here's hoping they don't introduce FLS2 in the Autumn statement.

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Thinking on the hoof, and so probably wrongly,

When saving under a 'rate inflating' environment,

I wonder whether people will hold off from committing to fixed-terms in anticipation that rates will rise further - so forcing a more rapid rise in rates than otherwise if banks need funds.

The opposite of spending in a deflationary environment.

If so, don't rush :)

Edited by LiveinHope

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another swallow

With effect from Friday evening 21st November, we will be withdrawing from sale the following product:

1 Year Fixed Rate Bond Issue 19 paying 1.60% AER

This product will be replaced with:

1 Year Fixed Rate Bond Issue 22 paying 1.75% AER

What bank is this from?

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I wonder if this also has something to do with the bigger presence of p2p lenders becoming more maintstream (adverts, inclusion in tax free NISA's from next year etc). A lot of people won't see much difference between p2p lenders and banks except the former pays higher interest rates (and Zopa and Ratesetter have contingent funds to cover any losses, which have not been used yet). The only thing banks have that trumps p2p is the £85k payout insurance if a bank goes bust. I am sure a lot of pensioners will put their money into p2p rather than banks.

Edited by fru-gal

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You can use current accounts and regular savings accounts to get better rates without having your money locked up for 2 years. I've worked out I'm getting 2.42% average on my regular savers and 2.98% on various lump sums in current accounts. Still fairly crap, but less crap than the 1.6 I'm getting in my funnel account at BM Savings, and I can get at the money.

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Santander 123 Current 3% on £20k
Nationwide Save To Buy Issue 2 2% on £20k "On balances over £20,000 0.25% gross p.a./AER variable will be paid on the whole balance"
Nationwide FlexDirect 5% on £2500 One acc allowed
Tesco Current Account 3% on £6000 Two £3k accounts allowed.
Bank of Scotland Classic Current Account 3% on £15000 from three £5000 accounts
TSB Classic Plus Current Account 5% on £4000 from two £2000 accounts
Lloyds Club Lloyds 4% on £5000 One acc allowed
Furness One Year Festive Saver 2.55% on £1000 Lump sum deposited in first month of reg saver (which is 250/month).

Average rate is 2.97% on 72.5k of savings if you open all those. Joint accounts would bump it up too.

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Someone's in need of savers.....


FLS money gone has it ?



"120 Day Notice Personal Savings Account Issue 22 paying 1.75% AER


This product will be replaced with:



120 Day Notice Personal Savings Account Issue 23 paying 1.85% AER"


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That makes sense. FLS halved savings rates when it was introduced, here's hoping they don't introduce FLS2 in the Autumn statement.

It will be interesting to see what they do announce, can the housing market remain propped up without any assistance until the election?

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I got another email from Shawbrook yesterday, it says...

As part of our commitment to customers that you will always be the first to hear of rate changes, we are writing to advise you of changes to our interest rate for our 120 Day Notice Personal Savings Account.

With effect from Monday evening 1st December, we will be withdrawing from sale the following product:


120 Day Notice Personal Savings Account Issue 22 paying 1.75% AER

This product will be replaced with:

120 Day Notice Personal Savings Account Issue 23 paying 1.85% AER

You can apply for our new product issue on our website from 5pm on Monday the 1st December.

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According to my notes from when I was shopping around for new accounts, Shawbrook were offering 1.75 and 1.9 for 95/120 day notice not so long back, end of August I think. Constant tinkering.

In October BM Savings raised their easy access account from 1.35% (Issue 13) to 1.6% (Issue 14). I looked the other day and they'd disappeared Issue 14 and were offering Issue 13 again at 1.35%. 1.6% was available from 13/10/2014 to 10/11/2014. Four weeks. Tthey don't tell existing savers when they raise their rates, they just quietly slip out a new issue and you're stuck on the old rate unless you find out and ask to be swapped.

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SAGA, for those of us who can use them, are offering "SAGA Internet Saver Issue 16" which is instant access and pays 1.55% including a first year bonus of 1.05%, so you need to remember to move the money after a year or it drops to 0.5%. This is in conjunction with BM so shares the £85K FSC guarantee with Halifax, Bank of Scotland etc. but since we have no money deposited with any of those it is worth considering when our Virgin instant access accounts drop from 1.41% to 1.21% in January.

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