It's 5.50% AER guaranteed for a year. Does anyone know what happens after a year? Do they always reduce the rate? If so by how much? Can you just leave and start a new account with them, or do you have to wait a year or something, or maybe you can never get that account again?
It will depend on what Interest rates as a whole are like in a year's time. If base rates continue to go up as is most likely then the rate applied to your account may be more or less than what you have been quoted now.It is probably a loss leader for them now to attract new business and they will hope that when your deposit matures that you will keep your money with them. Best thing to do is to search something like
They didn't do anything to stop existing savings account holders opening an 'introductory' account and running it in parallel with the old one. They even allow transfers between the two without the pain of going via a current account. So when the year is up there would not appear to be any bar to transferring the money to wherever the best deal is.
BTW, the introductory offer rises by 0.15% in a week's time whereas the ordinary savings account rises by the full 0.25.
The offer closes tomorrow, so do it soon if you're going to. No doubt that whatever they do at the end of the year will be less favourable than the Offer, but there's no lock-in and there are plenty of other fish in the sea! Note that even though this was an 'introductory' offer, it was available to their existing customers
Tomorrow the rate will be 5.65%!
Without a hint of irony, Alex astounded uk.finance on 01 Sep
2004 by announcing:
No. Today the rate is 5.10% for new accounts.
Yes, but the `introductory account` will be 5.65%.
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