UK 7% Plus Fixed Rate Savings Bonds- Aug 08
Personal_Finance / Savings Accounts Aug 02, 2008 - 11:54 PM GMTBy: Shahla_Walayat
Despite three interest rate cuts, UK fixed rates rose over the summer months to above 7% as cash starved banks, sought to get as much cash in through the doors as possible after failing to obtain credit on the money markets and rejected by the capital markets as evidenced by rights issue failures that prompted emergency action by arm twisting of the big banks to step in and buy up unsold stocks such as that of Bradford and Bingley.
However fixed rates are starting to nudge lower again as the pace of economic slowdown towards a possible 2009 recession gathers pace, thus implying lower interest rates in the future and hence lower fixed interest rates now well in advance of UK base interest rate cuts.
But there still exists a rapidly closing window to lock in excellent fix rates above 7%:
| Financial Institution | Interest Rate | Fixed Period | Minimum £ | Comments |
| ICICI | 7.20% | 1 year | £1,000 | HiSAVE Fixed Rate - Indian bank - 7% for longer fixes (without early withdrawal) . The bank is registered with the FSA. Customer service is reported to be very poor. |
| FirstSave | 7.10% | 1 year | £1,000 | Can fix for 1 to 3 years. - Part of
First Bank of Nigeria Plc.
The bank is signed up to the Banking Code and registered with the FSA. |
| Icesave | 7.06% | 1 year | £1,000 | Can fix for 1 to 2 years. - Icelandic bank, press voice credit crunch problems which means it would be more complicated to get your money back if the bank went bust as Euros 20k from Iceland, and balance of the 35k from UK. |
| Anglo Irish Bank | 7.06% | 1 year | £500 | 9 month bond is 7%, |
| Bradford & Bingley | 7.0% | 1 year | £1,000 | Also pays 7% on 2,3 year bonds. Only one problem, Bradford and Bingley could be the next Northern Rock ! |
| Cahoot | 7.0% | 1 year | £1,000 | Available until 31st Aug 08 or earlier if fully subscribed. |
Current Level of protection for savers is upto 100% of the first £35k per banking group, therefore savers at this point should ensure they do not invest more than £35k with any single banking group. The government proposes to raise this to £50k.
By Shahla Walayat
http://www.moneyforums.co.uk
Copyright © http://www.moneyforums.co.uk 2008 - All Rights Reserved
Moneyforums.co.uk is a FREE site which provides UK Money Saving Guides, Tools and Forums including - Credit Score Calculator and the Savings Calculator . Mortgage and Tax Calculators. Money Saving Guides such as Credit Card Stoozing , Savings Tree , Money Saving Guide. Personal Finance Discussion Forums open to ALL, supported by experienced moderators, to discuss any personal finance topics from The best Savings & Deposit Accounts , Regular Savers and Cash ISA's and more.
This article maybe reproduced if it is reprinted in its entirety with links to http://www.moneyforums.co.uk
Disclaimer - Moneyforums.co.uk does not guarantee the accuracy of the information provided, and does not accept any liability for its accuracy, which is for general information purposes only as a starting point for your own research.
Shahla Walayat Archive |
© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.
Comments
|
Shahla_Walayat
15 Oct 08, 05:57 |
foreign banks
See article of 12th October in the light of the bankruptcy of Iceland and foreign banks Banks to Avoid as Iceland Goes Bankrupt with £10 billion of UK Deposits SW. |
