libitina Posted February 16, 2006 Share Posted February 16, 2006 http://www.personal.barclays.co.uk/BRC1/js...34&target=_self I wouldn't touch Barclays with a barge pole, but why are they able to offer such high rates? Quote Link to comment Share on other sites More sharing options...
Elizabeth Posted February 16, 2006 Share Posted February 16, 2006 (edited) http://www.personal.barclays.co.uk/BRC1/js...34&target=_self I wouldn't touch Barclays with a barge pole, but why are they able to offer such high rates? If you read the fine print, you will find that like Alliance and Liecester they are a limited account that you have to start with zero, can only save up to 250 a month and they dump it all in your low paying current account after 1 year and close the account. Its just a ploy to get current accounts. Fixed interest paid at the end of the term. Pay at least £1,000 into a Barclays current account each month, including your salary or pension mandate. No withdrawals or additional deposits. Conditions apply - if these are broken, the Easy Saver interest rate will apply for the whole term. Limited offer - may be withdrawn at any time. Alliance and Leicester is better. You can withdraw without a penalty as I remember. So, thats... get paid into Barclays , deposit 250 in savings account, transfer the rest to alliance and leicester the next day, deposit 250 in A&L saver.... Edited February 16, 2006 by Elizabeth Quote Link to comment Share on other sites More sharing options...
libitina Posted February 16, 2006 Author Share Posted February 16, 2006 Think I'll stick to First Direct Quote Link to comment Share on other sites More sharing options...
tonification Posted February 16, 2006 Share Posted February 16, 2006 Because its a loss leader You have to switch your current account to them, the amount you can pay in is limited and is limited to a certain period. Quote Link to comment Share on other sites More sharing options...
Unexpected Posted February 16, 2006 Share Posted February 16, 2006 http://www.personal.barclays.co.uk/BRC1/js...34&target=_self I wouldn't touch Barclays with a barge pole, but why are they able to offer such high rates? Easy. They make you open a current account with them and your sallary has to be paid in. They pay you little or no interest on this money. Then they allow you to open a savings account paying 10% but only up to £250 a month. So they still make a profit. They also have you as a customer now and when the deal ends you will probably stay with them. Its a con. Quote Link to comment Share on other sites More sharing options...
ʎqɐqɹǝʞɐɥs Posted February 16, 2006 Share Posted February 16, 2006 Think I'll stick to First Direct Think I'll stick with Ocean Finance Quote Link to comment Share on other sites More sharing options...
Darth_Calculus Posted February 16, 2006 Share Posted February 16, 2006 I believe that the Alliance and Leicester pays 5% on credit balances, and 0% on its overdraft, so that seems reasonable to me? I was thinking of switching to Alliance and Leicester, any thoughts on why I should(n't) would be most welcome. I agree that the limitations on the savings account are restrictive, but surely the fact that the rate is higher would mean that I would be better putting any extra monthly savings into the haighest paying interest account. So, for example, if I have £500 to save each month, I'd be better putting £250 in the A&L savings, and any extra in the next highest account (First Direct for example)? Quote Link to comment Share on other sites More sharing options...
Elizabeth Posted February 16, 2006 Share Posted February 16, 2006 I believe that the Alliance and Leicester pays 5% on credit balances, and 0% on its overdraft, so that seems reasonable to me? I was thinking of switching to Alliance and Leicester, any thoughts on why I should(n't) would be most welcome. I agree that the limitations on the savings account are restrictive, but surely the fact that the rate is higher would mean that I would be better putting any extra monthly savings into the haighest paying interest account. So, for example, if I have £500 to save each month, I'd be better putting £250 in the A&L savings, and any extra in the next highest account (First Direct for example)? Sounds fine, just check the fine print. I actually don't have much gripe with A&L. There Morgage rates are by far the lowest, and while I am not in the market for a morgage at the moment, I think that the less they try to cadge the better I like them on principle. Quote Link to comment Share on other sites More sharing options...
Jason Posted February 16, 2006 Share Posted February 16, 2006 Ah, this is quite good! As I get my salary paid into their anyway I may aswell get a saver acc too. So, that's a £150 Gross interest PA. I'll look at the fine print at the weekend. Quote Link to comment Share on other sites More sharing options...
Milo Posted February 16, 2006 Share Posted February 16, 2006 I think the 10% figure is misleading as you can only put in a max of £250 per month for a max of 12 months. The first payment will earn £20 over 12 months (8% after tax), but the last £250 will only earn 1/12 of £20 (£1.67) in interest. Correct me if I'm wrong! If you want to save you’d be better off putting the money in an ISA. Quote Link to comment Share on other sites More sharing options...
Darth_Calculus Posted February 17, 2006 Share Posted February 17, 2006 I think the 10% figure is misleading as you can only put in a max of £250 per month for a max of 12 months. The first payment will earn £20 over 12 months (8% after tax), but the last £250 will only earn 1/12 of £20 (£1.67) in interest. Correct me if I'm wrong! If you want to save you’d be better off putting the money in an ISA. Hi Milo I agree, using your annual ISA allocation is always a good idea. However, that is also only £3k p/a. Yes you will only get £1.67 for £250 for one month, but you will get that for each £250, for each month each £250 is sat in the account: 1+2+3+4+5+6+7+8+9+10+11+12=78 x £1.67 = £130 net interest. I think that sometimes people compare these 'drip feed' accounts with the alternative of just sticking £3k into a regular savings account for a year. I think that this is like comparing apples with banananas, as the saving account option is assuming you have the £3k on day one, whereas interest calulations on 'drip feed' accounts assume that you start the year with zero, and have £250 to invest each month. Hi Jason I think the 5% on credit balances is only available if you have the internet banking only account, not their regular current account. I believe that the 10% regular saver applies to both though. Quote Link to comment Share on other sites More sharing options...
JonoP Posted February 17, 2006 Share Posted February 17, 2006 Bradford & Bingley have a similar 10% deal that is not predicated on a current account Cannot find info on their website but their Reading branch is advertising it Quote Link to comment Share on other sites More sharing options...
AteMoose Posted February 17, 2006 Share Posted February 17, 2006 I believe that the Alliance and Leicester pays 5% on credit balances, and 0% on its overdraft, so that seems reasonable to me? I was thinking of switching to Alliance and Leicester, any thoughts on why I should(n't) would be most welcome. I agree that the limitations on the savings account are restrictive, but surely the fact that the rate is higher would mean that I would be better putting any extra monthly savings into the haighest paying interest account. So, for example, if I have £500 to save each month, I'd be better putting £250 in the A&L savings, and any extra in the next highest account (First Direct for example)? Just switched to A and L, a nice easy process, but you recieve ALOT of mail, and get new cards you need to change pins on, and new internet banking you need to setup... Its really nice seeing interest on your current account Quote Link to comment Share on other sites More sharing options...
Jason Posted February 17, 2006 Share Posted February 17, 2006 Hi Jason I think the 5% on credit balances is only available if you have the internet banking only account, not their regular current account. I believe that the 10% regular saver applies to both though. Hi, The 10% regular saver applies to any current account. I've just opened one! I've also just opened a Halifax regular saver at 7%. So I won't be buying a house for 12 months!!! Quote Link to comment Share on other sites More sharing options...
?...! Posted February 17, 2006 Share Posted February 17, 2006 I think the 10% savings account is great for anyone just starting out saving for a house, making saving both easy and rewarding. In fact it is probably one of the best products out there for people in their early 20's. Starting out with little or no savings. It is a little misleading to say that you will have 10% more than you paid in at the end of the 12 months as the interest is accrued daily. So only your very first deposit will be 10% larger when the account matures. Your final deposit will only experience 10%APR for a month wich means about 0.833% growth. This is still a fairly good monthly yeild. 78*0.008333'* monthly deposit = total earnings on savings so £250pcm should earn you £165.50 over 12 months Giving you £3165.50 @ maturity it beats a £3000 lump @ 5% which would earn £150 over the 12 months Giving you £3150 @ maturity Just a thought... Quote Link to comment Share on other sites More sharing options...
Foobar Posted February 17, 2006 Share Posted February 17, 2006 I think we'll see more of these loss leaders in the future, as the banks fight over the few people with any savings! They need the money in reserve in order to lend out 10 times the amount in loans and mortgages etc. It's the fractional reserve banking system. Seeing as we have record debt, it'd be interesting to see if any banks are close to breaching the rules? Anyone know any more about this? Or am I talking absolute nonsense and no bank would ever get into such a situation?! Quote Link to comment Share on other sites More sharing options...
Guest Charlie The Tramp Posted February 17, 2006 Share Posted February 17, 2006 They need the money in reserve in order to lend out 10 times the amount in loans and mortgages etc. It's the fractional reserve banking system. Yes, but the amount they are offering on these accounts is peanuts to them, they collected £63.585 billion in interest alone from loans and mortgages in 2004. No wonder they are pushing IO mortgages to all those mugs out there. Quote Link to comment Share on other sites More sharing options...
Foobar Posted February 17, 2006 Share Posted February 17, 2006 Yes, but the amount they are offering on these accounts is peanuts to them, they collected £63.585 billion in interest alone from loans and mortgages in 2004. No wonder they are pushing IO mortgages to all those mugs out there. Thanks for that figure Charlie, it'll be good to use when reminding people exactly why the banking sector is doing so well. Quote Link to comment Share on other sites More sharing options...
theChuz Posted February 19, 2006 Share Posted February 19, 2006 Out of interst (no pun intended) the current account for A+L pays 5% for balances upto £2500 and then 0.1% if it exeeds £2500. Does anyone know if you have to stay below the £2500 limit to get the 5%. What im thinking is 5% is better than my savings account at the moment so would it be worth just dumping £2500 into the A+L current account and keep it at £2500. Im thinking.. open a balance of £2250 transfer £250 to the regular saver Pay in £500 per month transfer £250 to the regular saver Direct debit £250 to YBS savings account (i need another no strings regular savers, any suggestions?, YBS is just 4.7%) The £500 a month is DD from my barclays current account with thier regular saver attached. It might seem abit messy and to much hassle but i've got nothing to do these days anyway plus once its set up right it will be automatic. Quote Link to comment Share on other sites More sharing options...
Mart Posted February 19, 2006 Share Posted February 19, 2006 They're a gimmick and not worth the hassle - get an cash ISA and an equity ISA, put some in Premium bonds (no need to buy lottery tickets) check if there's a company share scheme (if there is, snatch their hands off assuming they contribute) and stick the rest in a monthly interest account. You then have : Some completely secure (in the bank) Some completely secure and tax free (cash ISA) A monthly 'gamble' with premium bonds - again 100% secure apart from inflation A steadily growing equity portfolio (you need to be in for the longer term here though and rather more risky than the other choices) Don't bite with these fad accounts - they are just that. £15 extra over one year ? Quote Link to comment Share on other sites More sharing options...
theChuz Posted February 19, 2006 Share Posted February 19, 2006 They're a gimmick and not worth the hassle - get an cash ISA and an equity ISA, put some in Premium bonds (no need to buy lottery tickets) check if there's a company share scheme (if there is, snatch their hands off assuming they contribute) and stick the rest in a monthly interest account. You then have : Some completely secure (in the bank) Some completely secure and tax free (cash ISA) A monthly 'gamble' with premium bonds - again 100% secure apart from inflation A steadily growing equity portfolio (you need to be in for the longer term here though and rather more risky than the other choices) Don't bite with these fad accounts - they are just that. £15 extra over one year ? To late the seeds have been sown Ive already maxed out my ISA and have the next chunk ready to go in. Have Cash in the bank and a few quid on the markets. Ive never really looked at premium bonds, i suppose i should read up on them. Im just saving for a deposit. Quote Link to comment Share on other sites More sharing options...
bungy Posted February 19, 2006 Share Posted February 19, 2006 Bradford & Bingley have a similar 10% deal that is not predicated on a current account Cannot find info on their website but their Reading branch is advertising it I took that out last week. It is on their website you just have to hunt a bit to find it. No tie in, but you can only put in £150 a month and no withdrawels until christmas. Still worth it as there are absolutely no tie ins to any rubbish current accounts. Quote Link to comment Share on other sites More sharing options...
BTman Posted February 19, 2006 Share Posted February 19, 2006 I've opened a new A&L direct account with the 10% savers account a few weeks back, so far so good... I'm bunging in 250 a month at 10% and will keep the 5% current account just below the 2500 threshold at all times.. I have linked my ING 4.5% savings account to my new current account no problems. So I can transfer money out of account a day before my wages go in (no need to worry about breaking the 5% threshold there.. :angry: ) A&L have sorted out all my direct debits, I'm just waiting to see where my wages go this month. I had a 0.1% Natwest account, so I just thought why not... I'm already seeing the interest on my current account, what a difference. A&L have been great imo, and no I don't work for them.. *all percentages are APR... Quote Link to comment Share on other sites More sharing options...
Jason Posted February 19, 2006 Share Posted February 19, 2006 I'm not sure if B&B are doing the christmas saver anymore, they have removed it from their website: http://72.14.207.104/search?q=cache:2VJHUx...uk&ct=clnk&cd=4 Link: http://www.bradford-bingley.co.uk/savingsa...thly_Savers.asp has now gone. I might ring tomorrow to see if they are still doing it! Quote Link to comment Share on other sites More sharing options...
mongoose Posted February 19, 2006 Share Posted February 19, 2006 For anyone: 1) That is incrementally saving 2) Already has a Barclays current account This is worth doing. Since I qualify as above, I will be taking this offer up. On the whole, these offers are muppet, but for the little effort required it is worth it for me. Quote Link to comment Share on other sites More sharing options...
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