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interest rates??

kdoug007
Grafter
Posts: 510
Registered: 17-05-2012

interest rates??

Any  one  one know  of a  building  society that gives  about 2%-2.50%  monthly  income
    taaa
17 REPLIES
alanf
Aspiring Pro
Posts: 1,931
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Registered: 17-10-2007

Re: interest rates??

Depends where you live, how much you have to deposit and how long that you are willing to commit for.
Not much point in going for a variable rate account as the rate could be anything soon.
Skipton BS 2.25% AER fixed  "160-Day Celebration Bond" Balance £500-£5000 has a monthly interest option. Matures December 13th. Open in branch only. No early access to capital.
http://www.skipton.co.uk/savings_and_investments/savings_accounts/celebration_bond/
Otherwise 2% seems to be the going rate for a 1-year fix. A little more if tying money up for longer.
http://moneyfacts.co.uk/compare/savings/fixed-rate-bonds/
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Re: interest rates??

I have a review appointment at my bank on Monday.
They're not going to be able to offer me anything worth having in the way of account upgrades......that won't cost me anything.
Interest rates are so low on current and savings accounts as to make no real noticeable difference to balances.
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Product of the Tyrell Corporation
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Registered: 24-09-2008

Re: interest rates??

I blame low interest rates on QE, there is so much 'cheap money' available to Banks and Building Societies that the typical saver doesn't stand a chance.
I had a review with the bank recently when I mentioned low interest rates. "Have you thought this could be a good time to borrow? - Have you thought about expanding your property portfolio?"
Nearly chocked on the jammy dodger at that  (they supplied tea and biscuits) Embarrassed
He then went through various options on me borrowing.
I suggested the banks cavalier approach to lending got us into this fine mess to start with, they should reign in lending and encourage saving......guess my suggestion fell on deaf ears Undecided
hmarshy
Grafter
Posts: 135
Registered: 09-08-2010

Re: interest rates??

You could try the Santander 123 current account recommended by Martin Lewis (http://www.moneysavingexpert.com/) but you have to run it like a current account:
Pay a monthly account fee of £2, fund the account with £500 a month (a minimum balance of £1,000 is required to receive interest); and set up a minimum of two Direct Debits. For cashback household bills must be paid by Direct Debit.
But you will get Cashback on household bills:
1% on water, council tax bills and Santander mortgage payments2
2% on gas and electricity bills
3% on mobile phone, home phone, broadband and paid-for TV packages
+ Up to 3% AER (variable) interest on your balance
It's 1% interest from £1,000 to £2,000, 2% from £2,000 to £3,000 and 3% from £3,000 to £20,000 but nothing for any amount over £20,000!
I have one of these but I am struggling to find any other decent account for my savings.
No, I'm not on commission!  Grin
Community Veteran
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Registered: 02-08-2007

Re: interest rates??

Tricky one as Building Societies can advertise an interest rate but then pull it at any time, I managed to get interest paid monthly from the Nationwide at a rate within the scale you want,
however I never actually saw it advertised they simply wrote to me regarding a current account that was coming to an end and I could transfer into this new one which pays less than half of what I was previously getting and this would tie the capital up for 4 years.
I Need this money to supplicate my existing pension so felt I had little option but to accept the deal and just hope no emergency arises where I might need the capital.
shalom2010
Grafter
Posts: 972
Registered: 28-12-2012

Re: interest rates??

The risk of tying your money up, is of course, if rates increase. However with the current climate that's unlikely. I currently have an ISA-bond with Nationwide at an amazing (at today's rates) of 4.5 %, which will end next year. It lasted four years so
was very happy with it. I'll probably just transfer the money into my cash ISA account which pays 1.75 pc!
Community Veteran
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Registered: 08-01-2008

Re: interest rates??

I don't look at interest rates very much because I have no money (she spends it).
Slightly off the wall idea: If you transfer your gas or electricity supply to OVO energy they pay you 3% on any credit: http://www.ovoenergy.com/our-promise/3-interest-page/ I'm not sure if you can just 'chuck a load of money' into your energy account and get it back with interest when you want it.
Call me 'w23'
At any given moment in the universe many things happen. Coincidence is a matter of how close these events are in space, time and relationship.
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kdoug007
Grafter
Posts: 510
Registered: 17-05-2012

Re: interest rates??

many tnks  alanf and others...
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Registered: 05-04-2007

Re: interest rates??

Quote from: Howard
You could try the Santander 123 current account recommended by Martin Lewis (http://www.moneysavingexpert.com/) but you have to run it like a current account:
Pay a monthly account fee of £2, fund the account with £500 a month (a minimum balance of £1,000 is required to receive interest); and set up a minimum of two Direct Debits. For cashback household bills must be paid by Direct Debit.

Yep, so you'd need to make £24 in the year just to break even and pay the fees. I love the way they quote it per month rather than per year to make it sound less.
Same issue with their credit credit card (again £24 per year).
It's fine though if you do use it as your main account and batter it I guess.
I've got an ex-Egg card (now Barclaycard) which I think was ringfenced years ago. 1% cashback on anything (up to a £200 cap) and I also got it before Egg introduced a £1 monthly charge (so a £12 annual fee there then).
I use it all the time, best you can get out there I think.
Sadly no good for new customers, and I don't think there is anything better out there.
Community Veteran
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Registered: 12-08-2007

Re: interest rates??

If you can tie your money up for 5 years some of the supermarkets are offering 6% on bonds.
Community Veteran
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Registered: 21-03-2011

Re: interest rates??

Invest in  new Royal Mail 1st class stamps (not the type showing actual price); their price has been increasing above inflation for the past decade. Strangely enough there is no stamp duty on such transactions.
Now Zen, but a +Net residue.
Community Veteran
Posts: 18,544
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Registered: 12-08-2007

Re: interest rates??

A bit cumbersome if you wanted to invest £10,000 Wink Wink
Community Veteran
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Registered: 24-09-2008

Re: interest rates??

The bond market is not protected by the FSCS
Community Veteran
Posts: 18,544
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Registered: 12-08-2007

Re: interest rates??

No that's one reason interest rates are high. There's not much of a risk with the likes of Tesco.