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FabulousSophie

Savings rates are definitely on their way up

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Secure Trust Bank has just released its latest savings account rates, and as I suspected it has beaten Paragon and Charter Savings Banks in the interest rate tables. Its 180 day notice account offers 1.77% and its 120 day notice account offers 1.73%. I expect these rises are due to the end of TFS. If the BoE base rate does actually go up, we could see savings rates around 2% for the first time on some notice accounts.

Edited by FabulousSophie

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I was offered 2% in a money market account from the nice chap at Morgan Stanley today.  He also advised me to STR (suburbs of Seattle).

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Bit like fuel prices, quick to increase slow to lower......why would they pass anything to savers, savers have lost interest whilst base rate has remained the same..... choosing to lower debt interest instead, thus encouragement of debt not saving, encourage spending not saving.....holding savings are a liability, holding secured low cost debt or high priced unsecured debt is an asset.😉

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44 minutes ago, swordy said:

Coventry BS have just lowered my easy access ISA to 1.15%.

The banks are up to their necks in the mega bubble and need to keep it going...if the free magicked up cash has stopped tho...the market dictates the rates.

 

I'd wager the bankers are happy to see the b.s. destroyed, especially the largest one....

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I'm still dabbling with P2P and currently have about £50k in the market.  I've been in 5 year, 3 year, 1 year and instant access markets since mid-2014.  So far annualised return has been 4.2%.

Right now my forward yield is 3.5% with the majority of that £50k being in the 1 year market.

Of course capital is at risk with P2P but so far it's doing what is says on the tin for me.

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1 hour ago, wish I could afford one said:

I'm still dabbling with P2P and currently have about £50k in the market.  I've been in 5 year, 3 year, 1 year and instant access markets since mid-2014.  So far annualised return has been 4.2%.

Right now my forward yield is 3.5% with the majority of that £50k being in the 1 year market.

Of course capital is at risk with P2P but so far it's doing what is says on the tin for me.

Same here but have some in ISA with Ratesetter now. ..have some cash in regular banks/B.S. but got tired of seeing it being slowly confiscated over the years and wanted inflation beating return...I resent being forced by HMG to take risk. I have shares also that have done okay (high divi mainly)....

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1 hour ago, Wayward said:

Same here but have some in ISA with Ratesetter now. ..have some cash in regular banks/B.S. but got tired of seeing it being slowly confiscated over the years and wanted inflation beating return...I resent being forced by HMG to take risk. I have shares also that have done okay (high divi mainly)....

I put all my ISA Allowance into a Stocks & Shares ISA.  My P2P will be used for the home purchase and I wouldn't want to pull that level of capital from the ISA tax shelter just in case I ever return to the UK at some point.

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13 minutes ago, wish I could afford one said:

I put all my ISA Allowance into a Stocks & Shares ISA.  My P2P will be used for the home purchase and I wouldn't want to pull that level of capital from the ISA tax shelter just in case I ever return to the UK at some point.

I guess now dividend tax free allowance reduced it makes more sense to put S&S into ISA.

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1 minute ago, Wayward said:

I guess now dividend tax free allowance reduced it makes more sense to put S&S into ISA.

As an additional rate taxpayer it makes a big difference on my divi's.  Those outside of my ISA/Pension are currently being taxed at 37.5%.  Saves with capital gains as well (if I ever need to sell).

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30 minutes ago, wish I could afford one said:

I put all my ISA Allowance into a Stocks & Shares ISA.  My P2P will be used for the home purchase and I wouldn't want to pull that level of capital from the ISA tax shelter just in case I ever return to the UK at some point.

Can foreign tax residents hold ISAs? I thought they are only available to UK tax residents?

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2 minutes ago, FabulousSophie said:

Can foreign tax residents hold ISAs? I thought they are only available to UK tax residents?

My understanding and I'm not a tax professional.  A foreign tax resident can't open or add to an ISA.  You don't have to close any you had before you became non-UK resident though.  Depending on the double tax treaty between the UK and country of residence you may also then be taxed on what's in your ISA.

My pre-55 plan will be to take the dividends from both Trading Accounts and ISA's plus sell down wealth outside of ISA's.  Meanwhile continue to reinvest pension dividends.  That's just in case I want to come back someday.  Hopefully that doesn't occur and we find a better life elsewhere.

My post-55 plan, if history repeats, will then be to take dividends from Trading, ISA and Pension only.  The only fly in the ointment might become pension BCE's to do with the LTA.  I'll have to watch that and depending on how portfolio performs may have to also pull capital from the pension which I'll reinvest elsewhere.

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12 hours ago, longgone said:

not exactly high though is it 

 

i got 7% with Lloyds in 2007 !

Yeah...ten years ago, imagine if someone had said we'd be getting excited about 2% in a decade's time...

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10 minutes ago, btd1981 said:

Yeah...ten years ago, imagine if someone had said we'd be getting excited about 2% in a decade's time...

laughable. 

bit like saying prices have doubled down south after the crash, unimaginable but they both happen. 

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3 hours ago, btd1981 said:

Yeah...ten years ago, imagine if someone had said we'd be getting excited about 2% in a decade's time...

Hence why my diversification includes nice cars, motorcycles and old vinyl 

Motorbikes having a nice run at mo excuse the pun especially late 70’s and 80’s

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why allow anyone to save, when the economy is doing pants.... make them spend spend spend... until they are broke and living from paycheque to paycheque.... best way to credit a consumer army that can never leave... they can't afford to.... thats what's occurred over the last 20 years... 

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10 minutes ago, maverick73 said:

why allow anyone to save, when the economy is doing pants.... make them spend spend spend... until they are broke and living from paycheque to paycheque.... best way to credit a consumer army that can never leave... they can't afford to.... thats what's occurred over the last 20 years... 

only if you buy stuff 

 

i buy bugger all, and if i do its on gumtree or ebay. 

i wish houses were as affordable as everything else. 

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1 hour ago, maverick73 said:

why allow anyone to save, when the economy is doing pants.... make them spend spend spend... until they are broke and living from paycheque to paycheque.... best way to credit a consumer army that can never leave... they can't afford to.... thats what's occurred over the last 20 years... 

 

1 hour ago, longgone said:

only if you buy stuff 

i buy bugger all, and if i do its on gumtree or ebay. 

i wish houses were as affordable as everything else. 

Yep, last 10 years (for those lucky enough to be in a well paid job and own their own homes) it was a spend spend spend opportunity. 

Or.......for those like me and I guess IWICAO......save, save, save. 

Retiring this year....a transformational opportunity to save and not get sucked in. Caveat was you needed a great wage and be able to minimise outgoings. 

75% of salary into company pension and used my savings to live. 

However, if you weren't in the top 15% then it's not been nearly so great. Infact....rent and house prices have made it fairly awful. 

When rates do rise then the exodus from property will be huge. Why squeeze 5% yeild from what is not really a passive income when the banks pay 4%?  And for leveraged 118'ers the need to sell will be even more obvious. 

Crash coming soon....it's just the 'when' and how daft it will get before that. 

In the meantime my cash sits in premium bonds, heritage ISAs and an array of current accounts and regular savings that are massively complex to maintain. Average rate is 2% all with major banks or BSocs and under FSCS limits. 

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12 minutes ago, Pop321 said:

 

Yep, last 10 years (for those lucky enough to be in a well paid job and own their own homes) it was a spend spend spend opportunity. 

Or.......for those like me and I guess IWICAO......save, save, save. 

Retiring this year....a transformational opportunity to save and not get sucked in. Caveat was you needed a great wage and be able to minimise outgoings. 

75% of salary into company pension and used my savings to live. 

However, if you weren't in the top 15% then it's not been nearly so great. Infact....rent and house prices have made it fairly awful. 

When rates do rise then the exodus from property will be huge. Why squeeze 5% yeild from what is not really a passive income when the banks pay 4%?  And for leveraged 118'ers the need to sell will be even more obvious. 

Crash coming soon....it's just the 'when' and how daft it will get before that. 

In the meantime my cash sits in premium bonds, heritage ISAs and an array of current accounts and regular savings that are massively complex to maintain. Average rate is 2% all with major banks or BSocs and under FSCS limits. 

yep without a crash the last 10 years has wiped me out property inflation and career wise 

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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