Further cut to BoE base rate

Bank of England announces a further cut to the interest rate to 0.1%

I guess we’ll be getting another email from Starling, et al, shortly!

goodbye interest rates. im guessing virgin is going to cut my rate shortly too then, tbh

time to swap to revolut :^)

What will Revolut bring?

1.35% at the moment.

Although you’ll have to deposit nearly £5,200 and keep in there for a whole year to earn sufficient interest In said year to cover the Revolut Premium fee alone. Savings are restricted to Premium and Metal customers at the moment.

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Ahh… there’s the catch :smirk:

Time to grab one of what’s left of the fixed rate offerings?

Can you work out how much you’d need to keep in there to cover the metal fee? I’m tempted to do it

Standard mathematical operations of division.

TBH, although I use it, and Marcus 1.35% is pretty much useless but if you want instant access it’s better than nothing - just.

Didn’t @Rob do that? :thinking:

He did it for the premium fee

Around £8,900, as a lump sum to be sitting in your account for the full 12 months.

It’s worth noting these calculations assume you pay for your Premium (£70) or Metal (£120) account fee as one lump sum, not monthly (where the account fees are more expensive).

And don’t take into account tax - no isa at the moment

I think the annual savings allowance (tax-free saving) is above £120 isn’t it?

It’s £1,000 if you’re a basic rate taxpayer, £500 if you’re higher rate, so around £37,000 in savings for the latter case. I think basic cash ISAs are a niche product now.

Edit: at least at these recent interest rates

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Yeah so in other words I could safely stock away £10k and get all the interest that Revolut could offer and still be way under my allowance lmao

This entire thread sparked a round of (over)thinking on my part. Which is rarely a good sign, but maybe still worth sharing.

Given that interest rates for most providers will probably sink over the next few weeks, would it not be a bit like re-arranging the deck chairs on the Titanic to start shifting money around in current/savings accounts? In such unusual times, and assuming you still have regular income and are not ill, financial strategy seems to matter more than tactics. So maybe, if high returns are the goal, seriously considering investing in stocks and shares might be a better approach - buying during a crisis is generally a good idea. If the money you’re saving is for the short-term, then it won’t matter anyway which of the current accounts or savings accounts you put your money into. The few pence/quid that get returned won’t make much difference in the long run.

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Still sticking with Zeux and their 5% saver.

Even with their regulatory problems?

Never had an issue and don’t foresee any.