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capcloser

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Every 2 years we have to move our isas and savings account to another to get better interest,its a pain in the a** ,why cant barclays just give us the same deal on the accounts we already have,the interest starts off ok and the goes down to virtually nothing so they tell us to move to another, anyone know why banks do this?
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The banks are known to do this Capcloser - they think it attracts new business - and whilst it may in the short term it hacks longer term investors off. Typical short-sighted UK Banking.

 

It simply underlines the joke that the collective term for Bankers is a "Wunch" - (lol)

 

As an alternative I would suggest you look at a provider such as Fidelity who as well as offering a great Cash ISA - also enables you to access an Investment ISA - which as long as it fits your personal risk profile is worth considering with todays low interest rates for Cash ISA's and the prediction that the UK economy is going to recover well, the timing is looking good for an Investment ISA.

 

https://www.fidelity.co.uk/investor/isa/cash-isa.page

 

But getting back to your main problem re the High Street Banks reducing rates for existing customers - here is Fidelity's take on this:-

 

"Unlike many Cash ISAs you find at the high street banks, our Cash ISA seeks to find good rates of interest across banks and financial institutions reducing exposure to any one group. Therefore there is no ‘offer rate’ that will suddenly disappear, the interest rate reflects the current rates that can be found."

 

Do have a look at the web site - I would draw your attention to their charge on this type of account - 0.4% - BUT do note that this is NOT subtracted from the rate it quotes - and whilst at first glance may seem odd because the High Street Banks do not show a charge - just the headline rate they offer - so please note that Fidelity is NOT a Bank - it does not lend money or provide mortgages - it is an "Investment House" and therefore the rules are different and it has to tell you what it costs as a percentage of your investment to run its business.

 

Consider a Bank giving you, say 1.7% interest on your ISA account and then charging someone with a Mortgage 4.5% and figure what the Bank is taking as ITS annual management charge :-S

 

Here is what the say about their 0.4% AMC:-

 

"Low cost – just 0.4% annual management charge

 

It's important to understand that the annual management charge is taken directly from the performance of the fund, so you won't see any specific payments for it on your account transactions."

 

Hope this is of interest.

 

 

 

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We will need to move our cash ISA's next month when the bonus finishes, I did see t'other day on tele, Nationwide (I think) are now offering a cash ISA at close to bonus rates but keeping the rate high with out the bonus.
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Nationwide offer 1.3% to 2.5% - but to get the 2.5% you have to lock in for 5 years - not sensible in my view.

 

Especially when - if you look at investment ISA's where a managed UK Growth fund like Fidelity's produced 13.7% over the last 12 months.

 

And over 2013 - the total return was 25%. - See link:-

 

http://www.trustnet.com/Tools/PDFViewer.aspx?url=%2fFactsheets%2fFundFactsheetPDF.aspx%3ffundCode%3dFIFMNA%26univ%3dU

 

I do recommend that people look at the very low deposit rates we have currently that mean that the rates do not match inflation. - If someone has £5760 to save - why not split it in whatever ratio suits you and try an Investment ISA?

 

If you had done that last year having split the £5760 50/50 - and used a fund like the UK Growth Fund above that has achieved 13.7% over the last 12 months - your overall return would be circa 7%.

 

Risk is a funny thing - some say that doing this is too "risky" for them - and yet they are happy to see their capital reduce in real terms because the interest gained is less than inflation.

 

eggs in baskets......................................

 

 

 

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Hi Clive

My wife and I have an ISA each maturing in May and June, They were a fixed rate for 4 years paying 4.15 percent. There is no chance of finding any ISA that can come anywhere near that.

 

Has it happens we also have an ISA in three high income investment trusts, Schroders, Invesco Perpetual and M&G.

 

I am not suggesting anyone should invest in these firms by the way but over, 14 years they have paid a good income, and maintained the capital invested,short of devaluation by inflation.

 

This shortfall of capital through inflation does not bother me at 73 my priority is with income, if I was a younger man I would have invested in an account that reinvested the dividends,

 

The reason for the post is the best return was from Invesco Perpetual high income,I was getting ready

to transfer my cash isa's when I read Mr Woodford the manager is leaving after running the fund for 25 years.

 

Money experts are saying it is still not a bad firm but are saying there are better funds but, I can't find one that pays monthly,

 

 

 

 

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There are firms that pay monthly - but income funds tend to distribute every 6 months and so this is what I suspect you have come across. Not at my desk at the moment so cannot refer to our reference material re which income funds do pay monthly.

 

As for Woodford leaving Invesco - well you could always follow him to Oakley - but I must confess - they are not an Investment house I have any experience of.

 

I would not worry in the short term re any Invesco holdings - there is a lot of Bullshirt in the press about selling Invesco - but our take is that Woodford was a superb "architect" of his funds within Invesco. And just because an Architect leaves a firm does not mean that all the buildings he/she designed suddenly start collapsing.

 

Journalists want the hype to scare people to sell their newspapers. I see no reason to think that the team Woodford worked with will not continue along the lines he helped to create.

 

Early days yet - worth keeping an eye on - but not time for a knee jerk reaction.

 

Edit - forgot the link:-

 

http://www.telegraph.co.uk/finance/personalfinance/investing/10527278/Neil-Woodford-joins-unknown-fund-manager.html

 

 

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Whilst fully appreciating the op is alluding to isa rates etc, I can't see past Santanders 3% for up to £20000 in their 123 current account.

 

If for what ever reason you have some spare cash that you want instant access to, it seems like an absolute no brainier to me.

 

We've changed banks for the first time in 27 years to take advantage of it. It took me 7 minutes to swap accounts all from the comfort of my sitting room, a doddle.

 

The transfer was seamless. I have no Santander connection apart from being a very satisfied customer.

 

Martyn.

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Relax and just treat it as a chalanging game just like supermarket special offers. It's called playing them at their own game. My wife plays the supermarket game and I play the banking one. We have many accounts as most put a limit on the amount you can have in their special offer accounts. I move at least one account every month often more.
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