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Boughtin95

Interest Rates Biting?

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I received this from Cahoot last night:

Dear Mr boughtin95,

I am writing to let you know that we will be changing the rate on your cahoot savings account to 4.55% AER on 28 April 2006*.

Although it's never good news to hear when we reduce our rates, a cahoot savings account continues to be highly competitive, offering a higher rate than the Bank of England base rate and many banks, including ING, Halifax, Lloyds TSB, Natwest, Egg, and Alliance & Leicester. We also guarantee our savings rate will match or be above the Bank of England base rate until 31 December 2006.

Bank AER

cahoot 4.55%

Alliance & Leicester 4.25%

Egg 4.50%

Halifax 4.50%

ING 4.50%

Intelligent Finance 4.40%

Lloyds TSB 4.25%

Natwest 4.20%

Rates taken from competitors websites and are correct as of 10 April 2006.

Additionally, a cahoot savings account gives you instant access to your money. This means that, unlike some other accounts, you will not be penalised for transferring money in or out of your account.

Good timing by Cahoot as half the country would be heading out for the Easter weekend and the other half would be in the pub?

Is this a result of BoJ increasing there interest rates or ar the Banks and Building Societies trying to reduce outgoings to cover bad debt?

We now have Nationwide increasing their mortgage interest rates and Cahoot reducing the interest rates they pay to savers, things really are starting to bite.

Any ideas on where to move savings to next? Please don't say gold! :ph34r:

Cheers.

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I received this from Cahoot last night:

Dear Mr boughtin95,

I am writing to let you know that we will be changing the rate on your cahoot savings account to 4.55% AER on 28 April 2006*.

Although it's never good news to hear when we reduce our rates, a cahoot savings account continues to be highly competitive, offering a higher rate than the Bank of England base rate and many banks, including ING, Halifax, Lloyds TSB, Natwest, Egg, and Alliance & Leicester. We also guarantee our savings rate will match or be above the Bank of England base rate until 31 December 2006.

Bank AER

cahoot 4.55%

Alliance & Leicester 4.25%

Egg 4.50%

Halifax 4.50%

ING 4.50%

Intelligent Finance 4.40%

Lloyds TSB 4.25%

Natwest 4.20%

Rates taken from competitors websites and are correct as of 10 April 2006.

Additionally, a cahoot savings account gives you instant access to your money. This means that, unlike some other accounts, you will not be penalised for transferring money in or out of your account.

Good timing by Cahoot as half the country would be heading out for the Easter weekend and the other half would be in the pub?

Is this a result of BoJ increasing there interest rates or ar the Banks and Building Societies trying to reduce outgoings to cover bad debt?

We now have Nationwide increasing their mortgage interest rates and Cahoot reducing the interest rates they pay to savers, things really are starting to bite.

Any ideas on where to move savings to next? Please don't say gold! :ph34r:

Cheers.

Why don't they put in companies with higher rates!

B&B's is 4.85%.

In fact write and ask them why they don't include that bank ;)

Edited by erd

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First direct e-savings @ 5%

If the markets have priced in a rise soon in UK interest rates why are most of the banks suddenly cutting their savings rates? Can anyone explain the fundmentals behind this?

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First direct e-savings @ 5%

If the markets have priced in a rise soon in UK interest rates why are most of the banks suddenly cutting their savings rates? Can anyone explain the fundmentals behind this?

Projected bad debts lowering the spread between saving and borrower rates? They could have passed this on to borrowers. Obviously, they think that savers have nowhere else to go.

Edited by karhu

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First direct e-savings @ 5%

If the markets have priced in a rise soon in UK interest rates why are most of the banks suddenly cutting their savings rates? Can anyone explain the fundmentals behind this?

They are miffed because they've just got into trouble for the extortionate fines they charge customers for unauthorised overdrafts and late payment charges on credit cards.

They're not allowed to do it anymore, and I suspect that they are now trying to save money in other areas instead.

Halifax have just reduced my ISA rate by 0.5% whilst putting up the rate on my two Halifax credit cards by 4% and 7% respectively. :angry: :angry: :angry:

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Ha...it does please me that there is a cabal of us dumping savings into accounts on the first day of Easter whilst Joe Public sinks more into debt in his trips to IKEA or Oxford Street.

First thing I did this morning was fill up the cash isa for the year and dump a grand into cahoot.

I think A+L have dropped their Direct ISA account too.

M*therf*ckers!

PS.

2nd thing I did/am doing is downloading the next 'sode of Lost and listening to the new Morrissey album. Who needs to spend?!

"You can kill me or throw me off a train but I still maintain

Life is a pigsty"

Made me laugh!

Edited by DonnieDarker

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I STR'ed in November and stuck the proceeds in a Nationwide ebond paying 5.15% I'm now feeling rather chuffed. Hopefully when I redeem is at the end of the year they'll have another at around 5.50% :rolleyes:

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They are miffed because they've just got into trouble for the extortionate fines they charge customers for unauthorised overdrafts and late payment charges on credit cards.

They're not allowed to do it anymore, and I suspect that they are now trying to save money in other areas instead.

Halifax have just reduced my ISA rate by 0.5% whilst putting up the rate on my two Halifax credit cards by 4% and 7% respectively. :angry: :angry: :angry:

We had a thread a while back about bank charges, and how bad they were, alot of us were saying that its tough luck if you can't manage your finances properly.

Now it looks like they are dropping savings rate, increasing credit rates, i also read that its very possible that current accounts wont remain free aswell.

Once again i will end up paying for other people foolishness. Charge the people who mess up not the people who do stuff right.

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I received a similar but slightly different email from cahoot:

<<I am writing to let you know that we will be changing the rate on your cahoot savings account to 4.55% AER on 28 April 2006*. Since we launched the introductory rate savings account, it has been one of the best in the UK. In fact, we were able to maintain this market-leading rate for over 20 months, despite a rate guarantee of only 12 months and the reduction in the Bank of England base rate in August of 2005.

<snip>

*The introductory savings account interest rate from 28 April 2006 will be:

Account balance GBP Gross p.a. /AER

Up to 50,000 4.55%

The introductory savings account interest rate as at 22 March 2006 were:

Account balance GBP Gross p.a. /AER

Up to 50,000 5.00%

>>

In other words, the interest rate on my savings is being reduced by nearly a half percent, without any decrease in general interest rates. I think I'll be looking for other places to keep my cash.

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Ha...it does please me that there is a cabal of us dumping savings into accounts on the first day of Easter whilst Joe Public sinks more into debt in his trips to IKEA or Oxford Street.

First thing I did this morning was fill up the cash isa for the year and dump a grand into cahoot.

I think A+L have dropped their Direct ISA account too.

M*therf*ckers!

PS.

2nd thing I did/am doing is downloading the next 'sode of Lost and listening to the new Morrissey album. Who needs to spend?!

"You can kill me or throw me off a train but I still maintain

Life is a pigsty"

Made me laugh!

Yea A+L have too, lucky enough i got it sorted when the ISA was 5.2 and the savings account was 5.15 fixed for 12 months.

they could also be playing there silly rate game when tehy know its going to change. Drop rates before hand so they can put them up when the base rate rises.

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Call me naïve, but I’m not interested in chasing the highest savings interest rate. I want to be sure of getting my money back, so I avoid bonds and term accounts. I prefer instant access, or at worst instant access with loss of interest.

If there’s a credit implosion, I worry that the Abbey Nation Alliance whatever is going to hang onto my savings, to bail out its craven debtors, whether I want it or not.

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Ha...it does please me that there is a cabal of us dumping savings into accounts on the first day of Easter whilst Joe Public sinks more into debt in his trips to IKEA or Oxford Street.

Can you count me in as a member of this cabal. Big restructuring of my accounts coming on whichever day the banks open again, internet-only accounts, more regular savers. Accounts primed with cash so that I can afford to save at full speed on more regular savings accounts all coming up.

Billy Shears

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Call me naïve, but I’m not interested in chasing the highest savings interest rate. I want to be sure of getting my money back, so I avoid bonds and term accounts. I prefer instant access, or at worst instant access with loss of interest.

If there’s a credit implosion, I worry that the Abbey Nation Alliance whatever is going to hang onto my savings, to bail out its craven debtors, whether I want it or not.

It wouldn't help them, the total amount of money they hold on deposit is only a very small fraction of the money they lend out.

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It wouldn't help them, the total amount of money they hold on deposit is only a very small fraction of the money they lend out.

Probably not, but I fear that won't stop them hanging on to my savings. I just wonder how much warning I'll get before they decide they can't afford to part with my cash. The greater the multiple of debts over deposits, the quicker the shutters will drop, I think.

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Probably not, but I fear that won't stop them hanging on to my savings. I just wonder how much warning I'll get before they decide they can't afford to part with my cash. The greater the multiple of debts over deposits, the quicker the shutters will drop, I think.

How, apart from going bust, could they hang onto your cash?

Billy Shears

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Probably not, but I fear that won't stop them hanging on to my savings. I just wonder how much warning I'll get before they decide they can't afford to part with my cash. The greater the multiple of debts over deposits, the quicker the shutters will drop, I think.

97% of the money in the UK is already money that's been borrowed from banks and building societies, and is not backed up anywhere by cash.

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How, apart from going bust, could they hang onto your cash?

Bank run.

If they have a limited amount of cash, and they have to give it to somebody else, perhaps because of a derivatives crisis or because of an unexpectedly high volume of loan defaults concurrent with a house price decline, because the banks have other creditors, they can't give it to me.

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First direct e-savings @ 5%

If the markets have priced in a rise soon in UK interest rates why are most of the banks suddenly cutting their savings rates? Can anyone explain the fundmentals behind this?

Cahoot are probablu operating on small margins, their credit card rate is still quite low if I remember right. I suspect being part of the sickly Abbey, the owners Banco Santander are probably trying to make them consistently profitable.

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Bank run.

If they have a limited amount of cash, and they have to give it to somebody else, perhaps because of a derivatives crisis or because of an unexpectedly high volume of loan defaults concurrent with a house price decline, because the banks have other creditors, they can't give it to me.

You are protected up to 35k by the FSA guarantee. If you are worried about your bank going bust, split your savings between several accounts with different banks so that you don't have more than 35k in one account.

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You are protected up to 35k by the FSA guarantee. If you are worried about your bank going bust, split your savings between several accounts with different banks so that you don't have more than 35k in one account.

Looking at the entry for Financial Services Authority From Wikipedia "Accountability and management - The FSA is accountable to Treasury Ministers, and through them to Parliament. It is operationally independent of Government and is funded entirely by the firms it regulates." i.e. it is accountable to the Government, but it is funded entirely by the firms it regulates.

That doesn't fill me with confidence - if several banks fail, the rest are unlikely to have the funds to honour the 'FSA guarantee'.

From the FSA website: If a bank or building society collapses, you may be at least partially protected by the Financial Services Compensation Scheme. The maximum compensation payment is £31,700 (100% of the first £2,000 and 90% of the next £33,000).

"The FSCS is industry-funded, with levies imposed on a pay-as-you-go basis to cover the

projected costs of the scheme arising in a 12-month period. While all authorised firms make

a small contribution to cover the basic administration costs of the FSCS, only firms whose

defaults can give rise to compensation payments (ie, those with protected retail business)

are required to fund compensation-specific costs."

Nowhere can I find any suggestion that the Government is going to cough up if the industry gets into serious trouble, to fund the FSCS.

o'pie.

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I just got the same email. Both my Cahoot checking and savings account have taken a hit but IR have not changed. Thing is I can't think anywhere better to put money with instant access? Actually thinking of chaning some to dollars..........

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Looking at the entry for Financial Services Authority From Wikipedia "Accountability and management - The FSA is accountable to Treasury Ministers, and through them to Parliament. It is operationally independent of Government and is funded entirely by the firms it regulates." i.e. it is accountable to the Government, but it is funded entirely by the firms it regulates.

That doesn't fill me with confidence - if several banks fail, the rest are unlikely to have the funds to honour the 'FSA guarantee'.

From the FSA website: If a bank or building society collapses, you may be at least partially protected by the Financial Services Compensation Scheme. The maximum compensation payment is £31,700 (100% of the first £2,000 and 90% of the next £33,000).

"The FSCS is industry-funded, with levies imposed on a pay-as-you-go basis to cover the

projected costs of the scheme arising in a 12-month period. While all authorised firms make

a small contribution to cover the basic administration costs of the FSCS, only firms whose

defaults can give rise to compensation payments (ie, those with protected retail business)

are required to fund compensation-specific costs."

Nowhere can I find any suggestion that the Government is going to cough up if the industry gets into serious trouble, to fund the FSCS.

o'pie.

I wouldn't worry about it too much. Banks have the ability to create money out of thin air, and do so every day. Just spread your cash amongst several different banks if you're that worried.

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I wouldn't worry about it too much. Banks have the ability to create money out of thin air, and do so every day. Just spread your cash amongst several different banks if you're that worried.

Banks can facilitate credit, if they have some real deposits and creditworthy customers. They can't just think of a number and print it up, though.

I've certainly not read anything to make me want to commit to term deposits with FSA regulated financial insitutions, especially not mortgage lenders. Not for the sake of one or two tenths of a percent higher interest.

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"I just got the same email. Both my Cahoot checking and savings account have taken a hit but IR have not changed. Thing is I can't think anywhere better to put money with instant access? Actually thinking of chaning some to dollars.........."

Whiterabbit,

Why are you thinking of dollars? Do you think the pound is due to tank vs dollar?

Edited by Bee Bear

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  • 302 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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