Best of the Week
Most Popular
1. Trumponomics Stock Market 2018 - The Manchurian President (1/2) - Nadeem_Walayat
2.Yield Curve Inversion a Remarkably Accurate Warning Indicator For Economic & Market Peril - Dan_Amerman
3.China is Now Officially at War With the US and Japan - Graham_Summers
4.Markets Pay Attention Moment - China’s Bubble Economy Ripe for Bursting - 16th Jul 18 - Plunger
5.Stock Market Longer-Term Charts Show Incredible Potential - Chris_Vermeulen
6.U.S. Stock Market Cycles Update - Jim_Curry
7.Another Stock Market Drop Next Week? - Brad_Gudgeon
8.The Death of the US Real Estate Dream - Harry_Dent
9.Gold Market Signal vs. Noise - Jordan_Roy_Byrne
10.The Fonzie–Ponzi Theory of Government Debt: An Update - F_F_Wiley
Last 7 days
SPX Losing Gains - 17th Aug 18
What Gold Is Not - 17th Aug 18
Dollargeddon - Gold Price to Soar Above $6,000 - 16th Aug 18
Stock Market Higher Again, Correction Over? - 16th Aug 18
Up Your Forex Trading Game - 16th Aug 18
Large Caps Underperformance vs. Small Caps is Bullish for Stocks - 16th Aug 18
“The Big Grab” - Failing Pension and Retirement System - 16th Aug 18
How US Indo-Pacific Vision Forgot Asian Development - 16th Aug 18
Impulse Moves in the Currencies - 15th Aug 19
Best Merlin UK Theme Park Summer Holiday 2018 - Thorpe, Alton Towers, LegoLand or Chessington? - 15th Aug 18
The Essence of Writing an Essay that Must be Understood - 15th Aug 19
Is Solar Energy Rising From The Ashes Again? - 15th Aug 18
A Bullish Bond Argument That Hides in Plain Sight - 15th Aug 18
Jim Rogers on Gold, Silver, Bitcoin and Blockchain’s “Spectacular Future” - 15th Aug 19
A Depressed Economy And A Silver Boom - 15th Aug 19
Moving Averages Help You Define Market Trend – Here’s How - 14th Aug 18
It's Time for A New Economic Strategy in Turkey - 14th Aug 18
Gold Price to Plunge Below $1000 - Key Factors for Gold & Silver Investors - 14th Aug 18
Dow Stock Market Trend Forecast 2018 - Video - 13th Aug 18
Stock Market Downtrend to Continue? - 13th Aug 18
More Signs That the Stock Market Will Rally Until 2019 - 13th Aug 18
New Stock Market Correction Underway - 13th Aug 18
Talk Cold Turkey Economic Crisis - 13th Aug 18
Which UK Best Theme Park - Alton Towers vs Thorpe Park vs Lego Land vs Chessington World - 12th Aug 18
USD is Rising. What this Means for Currencies and Stocks - 12th Aug 18
Hardest US Housing Market Places to Live - Look Out Middle Class - 12th Aug 18
America’s Suburbs Are Making a Comeback - 12th Aug 18
Stock Market US Presidential Cycle, Seasonal Analysis and Economy - Video - 12th Aug 18
Yield Curve Inversion and the Stock Market - Video - 11th Aug 18
Land Rover Discovery Sport 1st Dealer Oil Change Service - What to Expect - 11th Aug 18
How to Setup Webinars and Use Them to Overcome the Barriers in E-Learning - 11th Aug 18
Big US Stocks’ Q2’18 Fundamentals - 11th Aug 18
Dow Stock Market Trend Forecast 2018 - 10th Aug 18
SPX Testing Its First Support Level - 10th Aug 18
Dreaming of a "Comfortable Retirement" on a Public Pension? - 10th Aug 18
The Forrest Gump of All Future Democrat Election Losses - 10th Aug 18
More Uncertainty as Stocks Got Closer to January Record High - 10th Aug 18

Market Oracle FREE Newsletter

Trading Any Market

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