Banking - Interest rates

Aruffell

Aruffell

Aruffell

Soldato
Joined
29 Dec 2004
Posts
5,653
Location
Chatham, Kent
Hi all,

Currently got all of my banking with Santander, Select 123 current account, business account etc... but have just seen that the interest rate is dropping from 3% to 1.5% from the 1st November, so a headsup for anyone first and foremost.

Anyone know of any better interest rates as may be worth switching banks etc...

Thanks in advance,

Andy
 
The interest rates in all the accounts are being slashed. I've got a 123, Lloyds and TSB account and they're all dropping so might as well stick with them, as for me they're still giving the best returns compared to the other accounts available.
 
Everyone seems to be cutting rates. Halifax Reward, TSB... I'll be waiting until the drop hits and then reassess the situation. No point making decisions now as the market is likely to change again in the near future. Its far from stable.
 
Keeping my Santander account, 1.5% (plus cash back on bills) is better than 0% most other banks are offering on Current Accounts.

Also opened a First Direct Current Account so I can access the Regular Saver (5%) and opened a Tesco Account (3%) (you can open two Tesco accounts if needed).

I've also started getting into Peer-to-peer lending (thanks to the thread elsewhere in GD) via RateSetter.
Better return than any bank account going at the moment.
 
Scam said:
Blah blah, blame Brexit etc. (we should get used to saying that). Mind you inflation is going up so rates may rise. Who knows.
Click to expand...

BoE have said they will let inflation ride for a bit even if it goes over target and not increase rates
 
Rotty said:
BoE have said they will let inflation ride for a bit even if it goes over target and not increase rates
Click to expand...
Sigh :(

Speaking of savings accounts. One thing I never properly looked into was when they changed the tax-free allowance. a lot of people were saying it is now better to have your savings in a 'normal' savings account rather than an ISA - for the better rate? :confused: My ISA stayed up at a decent rate for a while after that announcement, so I never really investigated. So is it the case if you stick a lump sum in any old savings account you get the rate advertised and you don't get taxed unless you have squillions in it? :confused:
 
Scam said:
Sigh :(

Speaking of savings accounts. One thing I never properly looked into was when they changed the tax-free allowance. a lot of people were saying it is now better to have your savings in a 'normal' savings account rather than an ISA - for the better rate? :confused: My ISA stayed up at a decent rate for a while after that announcement, so I never really investigated. So is it the case if you stick a lump sum in any old savings account you get the rate advertised and you don't get taxed unless you have squillions in it? :confused:
Click to expand...

On a normal savings account, the bank will usually deduct tax from the interest when it pays to you.
 
Interest rates are been cut in private banking, already happened in business.

We were informed that interest on our business deposit account is dropping to 0% from 1st Nov unless you have over £5m in there in which case you get 0.05%

The terms have also changed so that in future the bank can charge us interest on credit balances ie they charge us to keep our money.
 
#Chri5# said:
On a normal savings account, the bank will usually deduct tax from the interest when it pays to you.
Click to expand...

This hasn't been the case since April.

All of my accounts now pay the interest as gross and you are required to complete a SA tax return to declare the interest so you can be taxed on it.
 
So, long story short if a normal savings account is paying 2% and my ISA is paying 1.5%, that money would be better off in the normal savings account? :confused:
 
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