Where to keep the cash.

[AtW]

BTW ATW, why banks lower savings interest whenever government interest rate is cut ? Government rate cut actually makes it easier for banks to get/keep money. Why does this has to mean savings rates cut all the time. ?

They cut savings rate mainly to reduce their own costs and central banks' cut is a good excuse for that. Usually when rate goes up they don't up savings rates as fast.

In theory this can be explained in that if savings rates are kept high it would make sense for banks to borrow from Govt, but usually such borrowing is not done on large scale - unless it is in the contract (like for some morgages) there is no real, exact, guaranteed link between bank rates and central bank rates. Usually during downturns such discrepancy becomes apparent where as during boom time competition is usually very high so banks operate on thinner margins and their rates might indeed get closer to central bank rates.

I think savings rates might be higher now than central bank rates because banks need this cash and interbank rates are high anyway. This stupid rate cutting has lead to what was not obvious before - disconnect between central bank rates and real world.

[juststarting]

http://www.alliance-leicester.co.uk/savings/esaver.aspx

ING has a 5 % interest one too.

But I wonder if these have been adjusted after the last interest cut. Surely, their employees will be useless to advice.



http://www.ingdirect.co.uk/savings/o...ngsaccount.asp

BTW ATW, why banks lower savings interest whenever government interest rate is cut ? Government rate cut actually makes it easier for banks to get/keep money. Why does this has to mean savings rates cut all the time. ?

[Bagpuss]

Beware of foreign banks offering high interest rates

Buy a property soon in Berkshire and your cash will be safe and give good returns. You heard it here first !!!

please FOAD

[AtW]

http://www.alliance-leicester.co.uk/savings/esaver.aspx

Ah, so you appeared all of a sudden. You must be the guru of savings.

[Cyberman]

Beware of foreign banks offering high interest rates

Buy a property soon in Berkshire and your cash will be safe and give good returns. You heard it here first !!!

[DimPrawn]

5%

http://www.alliance-leicester.co.uk/savings/esaver.aspx

[AtW]

My kaupthingedge savings account has dropped to 3.4 percent interest.

kaput savings

[juststarting]

My kaupthingedge savings account has dropped to 3.4 percent interest.


Where to move it to ? Flexible savings account wanted.