Best of the Week
Most Popular
1. Ray Dalio: This Debt Cycle Will End Soon - John_Mauldin
2.Stock Market Dow Plunge Following Fake US - China Trade War Truce - Nadeem_Walayat
3.UK House Prices 2019 No Deal BrExit 30% Crash Warning! - Nadeem_Walayat
4.What the Oil Short-sellers and OPEC Don’t Know about Peak Shale - Andrew_Butter
5.Stock Market Crashed While the Yield Curve Inverted - Troy_Bombardia
6.More Late-cycle Signs for the Stock Market and What’s Next - Troy_Bombardia
7.US Economy Will Deteriorate Over Next Half Year. What this Means for Stocks - Troy_Bombardia
8.TICK TOCK, Counting Down to the Next Recession - James_Quinn
9.How Theresa May Put Britain on the Path Towards BrExit Civil War - Nadeem_Walayat
10.This Is the End of Trump’s Economic Sugar High - Patrick_Watson
Last 7 days
The stock market fails to rally each day. What’s next for stocks - 14th Dec 18
How Low Could the S&P 500 Go? - 14th Dec 18
An Industrial to Stock Trade: Is Boeing a BUY Here? - 14th Dec 18
Will the Arrest of Huawei Executive Derail Trade War Truce? - 14th Dec 18
Trump vs the Fed: Who Wins? - 13th Dec 18
Expect Gold & Silver to Pullback Before the Next Move Higher - 13th Dec 18
Dollar Index Trends, USDJPY Setting Up - 13th Dec 18
While The Stocks Bulls Fiddle With The 'Fundamentals,' Rome Burns - 13th Dec 18
The Historic Role of Silver - 13th Dec 18
Natural Gas Price Setup for a Big Move Lower - 13th Dec 18
How to Get 20% Off Morrisons Weekly Supermarket Shopping - 13th Dec 18
Gold Price Analysis: Closer To A Significant Monetary Event - 13th Dec 18
Where is the Stock Market Santa Claus Rally? - 12th Dec 18
Politics and Economics in Times of Crisis - 12th Dec 18
Owning Precious Metals in an IRA - 12th Dec 18
Ways to Improve the Value of Your Home - 12th Dec 18
Theresa May No Confidence Vote, Next Tory Leader Betting Market Analysis and Forecasts - 12th Dec 18
Gold & Global Financial Crisis Redux - 12th Dec 18
Wow Your Neighbours With the Best Christmas Projector Lights for Holidays 2018! - 12th Dec 18
Stock Market Topping Formation as Risks Rise Around the World - 11th Dec 18
The Amazing Story of Gold to Gold Stocks Ratios - 11th Dec 18
Stock Market Medium term Bullish, But Long Term Risk:Reward is Bearish - 11th Dec 18
Is a Deleveraging Event about to Unfold in the Stock Market? - 11th Dec 18
Making Money through Property Investment - 11th Dec 18
Brexit: What Will it Mean for Exchange Rates? - 11th Dec 18
United States Facing Climate Change Severe Water Stress - 10th Dec 18
Waiting for Gold Price to Erupt - 10th Dec 18
Stock Market Key Support Being Re-Tested - 10th Dec 18
May BrExit Deal Tory MP Votes Forecast, Betting Market Analysis - 10th Dec 18
Listen to What Gold is Telling You - 10th Dec 18
The Stock Market’s Long Term Outlook is Changing - 10th Dec 18
Palladium Shortages Expose Broken Futures Markets for Precious Metals - 9th Dec 18
Is an Inverted Yield Curve Bullish for Gold? - 9th Dec 18
Rising US Home Prices and Falling Sales - 8th Dec 18
Choosing Who the Autonomous Car Should Kill - 8th Dec 18
Stocks Selloff Boosting Gold - 8th Dec 18

Market Oracle FREE Newsletter

How You Could Make £2,850 Per Month

UBL Slashes Best Fixed Rate Cash ISA by 23%! - Urgent Action!

Personal_Finance / ISA's May 11, 2016 - 08:54 AM GMT

By: Nadeem_Walayat

Personal_Finance

UBL's (United Bank UK) best buy fixed rate cash ISA that I have been tracking or a while has had its interest rate slashed by a whopping 23% on the 10th of May 2016 to a mere pittance of just 1.7% for a 5 year fix down from 2.2%, with similar deep cuts on other fixed terms as the following table illustrates.


1 Year 1.20%
2 Year 1.30%
3 Year 1.40%
5 Year 1.70%

And here is a history of the 5 year fixed rate that I have been tracking since January with a view to transferring my own maturing ISA's into.

Jan 2016 2.55%
Feb 2016 2.55%
8th April 2016 2.33%
18th April 2016 2.2%
9th May 2016 2.2%
10th May 2016 1.7%

What's notable is that the rates were high into the start of the tax year at 2.33% when new tax year customers would start to contemplate opening a new ISA or transferring existing maturing ISA's. Either way UBL plays the same game as most other banks do by enticing savers to open an account and then cut rates within a few weeks, as many will have opened accounts before the rate is cut but may end up with the lower rate anyway which in this case would amount to a huge difference in interest earned of 0.5% or 23% less than 2.2%!

Urgent Action for UBL Fixed Rate Cash ISA Savers

If you have opened an Cash ISA during the past week then before you make your deposit contact them to double check the interest rate they will apply which depends on whether they take the date of deposit or date of receipt of applications as the cut off date. If the rate has dropped then do not deposit funds into it and ensure you notify UBL of having changed your mind.

If you have made a ISA transfer application to UBL during the past 2 weeks then you need to ensure that your funds have LEFT your bank before the 10th of May 2016, so even if the funds have left your account as recently as say the 9th of May, given that it only takes a couple of hours for funds to arrive then they should have reached UBL in time for the rate change. If your funds have NOT left your existing ISA then contact UBL straightaway to confirm the rate that will be applied to your account and if it has dropped notify them that you have changed your mind due to the severe cut in interest rates.

If by the time you receive your paperwork you discover that the rate given is not as expected then, you have a short time window (usually 14 days) to notify UBL that you have changed your mind and seek to transfer your Cash ISA elsewhere without penalty, after 14 days you could be hit with a huge penalty which for a 5 year ISA is 1 year interest charge! i.e. you would get back 1.7% less than you put in.

UBL alternatives

Punjab bank offers 2.5% for 5 years but accounts can only be opened at a branch.

State Bank of India 2.1% for 5 years, accepts transfers in.

Nationwide 2% - allows transfers in.

The bottom line is that this is what savers are forced to put up with each new tax year, banks playing the game of hook the depositor then slash the rates, they all do it.

Ensure you are subscribed to my always free newsletter (only requirement is an email address) for forthcoming in-depth analysis and detailed trend forecasts that include the following :

  • BrExit to Save Europe from the Apocalypse
  • US Dollar Trend Forecast
  • UK Housing Market Trend Forecasts
  • US Stock Market Forecasts
  • US House Prices Detailed Multi-Year Trend Forecast
  • Gold and Silver Price Forecast

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2016 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 25 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules