Interest Rate Rises

[Sarah]

Ford Money

In line with Our Best Rate Guarantee we’re increasing the interest rate on our Flexible Saver effective 1st June 2023 as follows:

Current rate New higher rate
3.54% Gross 3.69% Gross

https://www.fordmoney.co.uk/savings-pro ... ible-saver

[Sarah]

Chase UK

Good news – we're increasing the Chase saver account interest rate from 3.1% AER (3.06% gross) variable to 3.3% AER (3.25% gross) variable, effective from 22 May 2023.

[jaytee]

Chip are offering 3.82% or 4.10% on a 90 day access account. All covered by FSCS

[Sarah]

Shawbrook

Easy Access Account Issue 35
AER 3.75% Variable

https://www.shawbrook.co.uk/direct/savi ... sy-access/

[expressman33]

Secure Trust Bank 3.85% easy access , 5.05% 1/2/3 year fixed rate bonds https://www.securetrustbank.com/savings ... r-accounts

[planteria]

two good rates there.. both better than anything from Building Societies afaik

[jaytee]

Raisin, with Tandem bank, are offering 2, 3 and 5 year fixed bonds at 5.25%, 5.30% and 5.35% respectively.
www.raisin.co.uk

With these figures, it suggests to me that they are not expecting interest rates to fall to the rates we saw over the last 10 years in the near future.

[Sarah]

two good rates there.. both better than anything from Building Societies afaik

The interest rate from Ford Money is actually the same as Shawbrook too, however they send me notifications that quote the monthly AER (3.69%) rather than the equivalent annual AER (3.75%) since my account uses the monthly option.

Also of note - the Shawbrook easy access account has more restrictive limits on balances only allowing £1,000 to £85,000 per customer; whereas the Ford Money flexible saver account permits balances of £1 to £2,000,000 for single or joint accounts.

[jaytee]

two good rates there.. both better than anything from Building Societies afaik

The interest rate from Ford Money is actually the same as Shawbrook too, however they send me notifications that quote the monthly AER (3.69%) rather than the equivalent annual AER (3.75%) since my account uses the monthly option.

Also of note - the Shawbrook easy access account has more restrictive limits on balances only allowing £1,000 to £85,000 per customer; whereas the Ford Money flexible saver account permits balances of £1 to £2,000,000 for single or joint accounts.

Personally, would not have more than £85,000 with one company as is the company folds the government will only compensate up to £85,000 under FCSC. But be careful, as some 'banks' are part of a group, for example Virgin Money and Clydesdale Bank, in which case if you had £80,000 in each you would only jave cover on a total of £85,000 and not £160,000.

[Sarah]

the government will only compensate up to £85,000 under FCSC

Indeed, exceeding £85,000 per depositor isn't recommended and I'm not advocating for anyone to take that risk, although the FSCS guarantee is effectively a minimum. If called upon, the government could choose to provide higher compensation cover if they wish, as they did with IceSave.