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Interest rates or the lack of them
Posted: Wed Apr 01, 2009 2:08 am
by Arginald Valleywater
Looking to open new ISA and found many of the large institution are offering a massive 0.5% on their cash accounts? Yet personal loan rates are around 10% for ?5000 and cheapest mortgage is 3% and a whacking great fee for anyone applying. So ?20k in a cash ISA would reel in a massive ?100 interest, wow.
Re: Interest rates or the lack of them
Posted: Thu Apr 02, 2009 6:32 am
by planeterotica
The reason they cut interest rates to an all time low is because they have to pay the interest on the mortgages of the unemployed and with the unemployment figures set to reach 3 million it would have cost the country a fortune, trouble is it has backfired because the lenders have faile to pass on the cuts to the borrowers !confused!
Re: Interest rates or the lack of them
Posted: Thu Apr 02, 2009 6:58 am
by Guilbert
I have just opened a Cash ISA plus account with NatWest bank paying around 3.51% (variable).
I put ?3,600 in the other day (this years allowance) and will put in ?3,600 after 6th April (next years allowance).
That will be ?7,200 getting 3.51% tax free.
You have got till 5th April to open an account and pay your money in to benefit from this years allowance.