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Solid? Solid As A Rock?

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Hi all,

Lloyds after some time have realise I have a chunk of sold-to-rent fundage sitting in one of my savings accounts and have invited me in for one of those "let's see what insurances and services we plug" kind of chats.

On the phone they mentioned their one year fixed bond which is currently offering 6% and undoubtedly they will try and get me to shift my cash into one of these. However, I've noticed that Northern Rock are offering 6% on an instant access account. Foolishly I've been quite loyal to Lloyds over the years but am now a bit fed up with the interest rates they are offering and I also need to spread my cash around a bit. Just how safe is Northern Rock? Would you put your cash there?

I had a look on Which I they were touting the following accounts as their best buys:

Icesave Easy Access 6.3%

Anglo Irish Bank Easy Access 6.1%

ICICI Bank UK Easy Access 6.16%

FirstSave Easy Access 6.26%

Kaupthing Edge Easy Access 6.5%

Birmingham Midshires Easy Access 6.52%

Chelsea BS Easy Access 6.5%

Bradford & Bingley Easy Access 6.51%

West Bromwich BS Easy Access 6.2%

Intelligent Finance Easy Access 6.4%

Are any of these "steer well clear of" or in the same group (thinking from a FSCS point of view)?

Regards,

Q

PS - Mods, please feel free to move.

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Hi all,

Lloyds after some time have realise I have a chunk of sold-to-rent fundage sitting in one of my savings accounts and have invited me in for one of those "let's see what insurances and services we plug" kind of chats.

On the phone they mentioned their one year fixed bond which is currently offering 6% and undoubtedly they will try and get me to shift my cash into one of these. However, I've noticed that Northern Rock are offering 6% on an instant access account. Foolishly I've been quite loyal to Lloyds over the years but am now a bit fed up with the interest rates they are offering and I also need to spread my cash around a bit. Just how safe is Northern Rock? Would you put your cash there?

I had a look on Which I they were touting the following accounts as their best buys:

Icesave Easy Access 6.3%

Anglo Irish Bank Easy Access 6.1%

ICICI Bank UK Easy Access 6.16%

FirstSave Easy Access 6.26%

Kaupthing Edge Easy Access 6.5%

Birmingham Midshires Easy Access 6.52%

Chelsea BS Easy Access 6.5%

Bradford & Bingley Easy Access 6.51%

West Bromwich BS Easy Access 6.2%

Intelligent Finance Easy Access 6.4%

Are any of these "steer well clear of" or in the same group (thinking from a FSCS point of view)?

Regards,

Q

PS - Mods, please feel free to move.

If its STR cash, 1 year bond it and get the extra 0.7% or so, on 35K its a tidy sum.

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I shifted mine into two bonds, one with the Nationwide and the other with ICICI. I have also had a savings account with ICICI for over a year and found them to be very good, so if you do need quick access then i'd go for them.

Steer clear of A&L and Halifax due to their abysmal service IMHO.

Good luck.

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[quote Icesave Easy Access 6.3%

Anglo Irish Bank Easy Access 6.1%

ICICI Bank UK Easy Access 6.16%

FirstSave Easy Access 6.26%

Kaupthing Edge Easy Access 6.5%

Birmingham Midshires Easy Access 6.52%

Chelsea BS Easy Access 6.5%

Bradford & Bingley Easy Access 6.51%

West Bromwich BS Easy Access 6.2%

Intelligent Finance Easy Access 6.4%

The reason why these institutions are top of the leage table is because they are all short of cash and hence desperate for savers' deposits; arguably the higher the interest rate the higher the risk!

Northern Rock are probably the safest institution in the land as they have their special guarantee from the Government, ie it is not just your first £35k that is safe, but also any amount above this.

(All IMHO of course.)

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spread it around in a number of accounts, get some bonds, get Egg Money Manager (or another equivalent money manager) to keep track of all the on-line accounts on one screen

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Hi chaps - apologies for late reply.

Thanks for your responses. In terms of 1 year bonds who offers the best deals? Are there comparable 6 month bonds?

I will need to spread the cash around a bit but keeping tabs on it can be a major pain. Is the Egg money manager an online thing? I have an old version of Microsoft Money which could do the job I guess - pain in the backside trying to keep it up to date though.

Regards,

Q

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Hi chaps - apologies for late reply.

Thanks for your responses. In terms of 1 year bonds who offers the best deals? Are there comparable 6 month bonds?

I will need to spread the cash around a bit but keeping tabs on it can be a major pain. Is the Egg money manager an online thing? I have an old version of Microsoft Money which could do the job I guess - pain in the backside trying to keep it up to date though.

Regards,

Q

Hi,

I think you may have to have an egg account to use the manager - but they've got a reasonable internet account at the moment (I think)

You have to enter all your account details and it "scrapes" the details from each of the accounts and displays all the balance details in one table - with totals.

I've used it - it takes a bit of effort to set up but it's easy to use - it's online and best of all - free

Hope this helps

Edited by Bankside

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Hi chaps - apologies for late reply.

Thanks for your responses. In terms of 1 year bonds who offers the best deals? Are there comparable 6 month bonds?

I will need to spread the cash around a bit but keeping tabs on it can be a major pain. Is the Egg money manager an online thing? I have an old version of Microsoft Money which could do the job I guess - pain in the backside trying to keep it up to date though.

Regards,

Q

ICICI do a 7% fix: http://www.icicibank.co.uk/hisave_termdeposit.html

Also, lots of other do >=7% now anyway. Checkout Moneysupermarket.com

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Hi chaps - apologies for late reply.

Thanks for your responses. In terms of 1 year bonds who offers the best deals? Are there comparable 6 month bonds?

I will need to spread the cash around a bit but keeping tabs on it can be a major pain. Is the Egg money manager an online thing? I have an old version of Microsoft Money which could do the job I guess - pain in the backside trying to keep it up to date though.

Regards,

Q

The risks pretty much don't change:

Building societies are funded differently from banks and are required to keep a much higher % of their assets as cash on deposit. Because of this they are very much less exposed to the worldwide money markets than banks and the risks associated with those markets.

Some of the foreign banks (particularly the Icelandic banks) are in my mind a greater risk. Although they are required to be part of the UK deposit scheme (and could theoretically repay your £35k) the Icelandic economy is a complete basket case and no risk-averse person would touch any of them with a barge pole.

As I recall Egg was owned by The Pru for a very long time, before being flogged-on to a French bank - again it's a dog and I wouldn't put my money any where near it if I was risk averse.

Frankly the best rates pay about 7% and the worst pay about 6%. On £100k the difference is £1k in interest over a year. This seems a paltry sum to me if you're risk-averse. I'd rather divide £100k up between three building societies knowing each was within the £35k max and lose £1k interest rather than stick all my money in some fly-by-night Icelandic cowboy-outfit who may well be bankrupt this time next year in any event.

You can also look at bonds with National Savings and Northern Rock - both of which are fully underwritten by the government. Building societies with online accounts with reasonable rates include: The Principality, The Yorkshire Building Society, The Chelsea - there are others and a complete list can be found here:

http://www.bsa.org.uk/

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[quote Icesave Easy Access 6.3%

Anglo Irish Bank Easy Access 6.1%

ICICI Bank UK Easy Access 6.16%

FirstSave Easy Access 6.26%

Kaupthing Edge Easy Access 6.5%

Birmingham Midshires Easy Access 6.52%

Chelsea BS Easy Access 6.5%

Bradford & Bingley Easy Access 6.51%

West Bromwich BS Easy Access 6.2%

Intelligent Finance Easy Access 6.4%

The reason why these institutions are top of the leage table is because they are all short of cash and hence desperate for savers' deposits; arguably the higher the interest rate the higher the risk!

Northern Rock are probably the safest institution in the land as they have their special guarantee from the Government, ie it is not just your first £35k that is safe, but also any amount above this.

(All IMHO of course.)

I think youre wrong. Icesave have bundles of UK cash and are not directly exposed to the UK mortgage madness.

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I think youre wrong. Icesave have bundles of UK cash and are not directly exposed to the UK mortgage madness.

And their exposure to the Icelandic madness?

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  • 399 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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