Interest Rates....

Went into the Building Society to have my pass book brought up to date with Interest earned from last year. It's a Cash ISA I have with them-not a fortune in the account, but its my money for any emergencies that may arise.

Checked the amount of Interest given, which was next to nothing and decided to ring them to check what the Interest Rate was. The chap told me 0.01% I know rates are low, but not that low. Anyway, in the same breath the chap said 'but we can given you 2.6%' Asked why I couldn't have that previously, was told it was 'telephone based', meaning that you don't get that rate unless you ring them!!!!!!!

No wonder their profits are high, and I still can't get my head around their reasoning........

Re: Interest Rates....

It was a similar story with my gas and electric supplier - rang them up to say I'm leaving and they offered a 'new' package which saves a few hundred quid a year!!

I was quite annoyed with them and said why wasn't I on this plan to begin with!!

Swindlers, the lot of em

Re: Interest Rates....

They are Azz Didn't say I was going elsewhere they just offered it me, but would have looked round for a better deal if it was just left at 0.01%!

Re: Interest Rates....

They certainly are Azz Would have gone elsewhere if they had left it at 0.01%!

Re: Interest Rates....

A very similar thing happened to my sister-in-law with her ISA - less than 1% and she didn't realise it was so low. You really do have to do some chasing around for interest rates these days and even then there is not much out there - unless you are prepared to enter the markets and take risk with your money. All most folks want is a decent return for your savings, which unfortunately at the moment doesn't seem to exist.

Re: Interest Rates....

Just wouldn't take any risks Aerolor-have heard a few stories from friends who lost more than they put in! I suppose I'm lazy really, as I can't be bothered chasing and swapping around, although I would have done in this case, but I'll certainly be checking on my account next April!

Apologies for double-posting above.

Re: Interest Rates....

We wouldn't take any risks now Merz - We are both o.a.p's now and the money we have has to see us both out. When ISAs first came out we did venture into the stock market, but it took about five years to get to where we started, so I wouldn't do it again.

Re: Interest Rates....

My last bond cashes in next Monday-I took some out before the interest cuts and am/was getting around 4.6%.

Now the best deal for 2 years is 2%-inflation is around 3%?

Low interest rates might be good for some but I must have been born backwards. My first mortgage was nearly 13% and now when older and a net saver I`m getting screwed again

Re: Interest Rates....

I know how you feel OG - much the same with us - when we were paying our mortgage the rates were never as low as they are today.

It doesn't seem worth trying to save anything at the moment. We locked our ISA into 4.60% for 3 years and gave away some to help children buy their houses. Seemed the best thing to do - at least they are in good housing without enormous mortgages - and that makes us happy.

Re: Interest Rates....

I can not complain at the high interest rates in the 80's, they turned my two endowment policies into a load of Cash. One paid out 871% and the other paid out 946%.
I opened a new account at HSBC last month with 8% interest (gross)guaranteed. This week I noticed that it has dropped to 6%. You open it with a minimum of £250 and pay in monthly but you have to leave it for 12 month before drawing anything out.

ISA's are paying less than NI Savings at the moment.