Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
The Euro Is Bidding Its Time: A Reversal at Hand? - 23rd May 19
Gold Demand Rose 7% in Q1 2019. A Launching Pad Higher for Gold? - 23rd May 19
Global Economic Tensions Translate Into Oil Price Volatility - 22nd May 19
The Coming Pension Crisis Is So Big That It’s a Problem for Everyone - 22nd May 19
Crude Oil, Hot Stocks, and Currencies – Markets III - 22nd May 19
The No.1 Energy Stock for 2019 - 22nd May 19
Brexit Party and Lib-Dems Pull Further Away from Labour and Tories in Latest Opinion Polls - 22nd May 19
The Deep State vs Donald Trump - US vs Them Part 2 - 21st May 19
Deep State & Financial Powers Worry about Alternative Currencies - 21st May 19
Gold’s Exciting Boredom - 21st May 19
Trade War Fears Again, Will Stocks Resume the Downtrend? - 21st May 19
Buffett Mistake Costs Him $4.3 Billion This Year—Here’s What Every Investor Can Learn from It - 21st May 19
Dow Stock Market Trend Forecast 2019 May Update - Video - 20th May 19
A Brief History of Financial Entropy - 20th May 19
Gold, MMT, Fiat Money Inflation In France - 20th May 19
WAR - Us versus Them Narrative - 20th May 19
US - Iran War Safe-haven Reasons to Own Gold - 20th May 19
How long does Google have to reference a website? - 20th May 19
Tory Leadership Contest - Will Michael Gove Stab Boris Johnson in the Back Again? - 19th May 19
Stock Market Counter-trend Rally - 19th May 19
Will Stock Market “Sell in May, Go Away” Lead to a Correction… or a Crash? - 19th May 19
US vs. Global Stocks Sector Rotation – What Next? Part 1 - 19th May 19
BrExit Party EarthQuake Could Win it 150 MP's at Next UK General Election! - 18th May 19
Dow Stock Market Trend Forecast 2019 May Update - 18th May 19
US Economy to Die a Traditional Death… Inflation Is Going to Move Higher - 18th May 19
Trump’s Trade War Is Good for These 3 Dividend Stocks - 18th May 19
GDX Gold Mining Stocks Fundamentals Update - 17th May 19
Stock Markets Rally Hard – Is The Volatility Move Over? - 17th May 19
The Use of Technical Analysis for Forex Traders - 17th May 19
Brexit Party Set to Storm EU Parliament Elections - Seats Forecast - 17th May 19
Is the Trade War a Catalyst for Gold? - 17th May 19
This Is a Recession Indicator No One Is Talking About—and It’s Flashing Red - 17th May 19
War! Good or Bad for Stocks? - 17th May 19
How Many Seats Will Brexit Party Win - EU Parliament Elections Forecast 2019 - 16th May 19
It’s Not Technology but the Fed That Is Taking Away Jobs - 16th May 19
Learn to Protect your Forex Trading Capital - 16th May 19
Gold Ratio Charts Offer The Keys to the Bull Market - 16th May 19
Is Someone Secretly Smashing the Stock Market at Night? - 16th May 19

Market Oracle FREE Newsletter

U.S. House Prices Analysis and Trend Forecast 2019 to 2021

Best Cash ISA for Crash / Collapse in UK Savings Interest Rates

Personal_Finance / ISA's Aug 06, 2016 - 07:19 AM GMT

By: Nadeem_Walayat

Personal_Finance

The Bank of England slashing UK interest rate from 0.5% to 0.25% in a panic to save its always teetering on the edge of bankruptcy bankster brethren from going bust again and to monetize government debt by means of quantitative easing, the smoke and mirrors phrase used for the Bank of England to print another £170 billion mostly for its banking sector friends to gorge themselves on, to generate additional artificial profits. The net effect of this 'THEFT' of purchasing power is that the price savers and workers have already been paying for 8 years has just gotten a lot worse!


So where do savers stash their cash in a time when the name of the game is to steal purchasing power of savings. In fact the big banks have begun to announce that they intend on going one step further, which is for outright theft of customer deposits by means of applying a negative interest rate on credit balances! Which means for instance if you have temporarily parked say £400k towards buying a property then at least 1% or £4k of that deposit could be transferred into the coffers of a member of the banking crime syndicate.

More on the game the Bank of England is playing in the following video analysis on the war on cash and what it means for your savings!

https://youtu.be/WGbEpnOqY3w

UK Best Cash ISA - August 2016

This years tax free cash ISA allowance is £15,240. So if you have not already utilised it then here are the current best rates in a world gone mad where savers are punished and borrowers are rewarded.

Firstly, my usual analysis to illustrate the magnitude of the collapse in ISA savings interest rates has hit a brick wall because Halifax have withdrawn virtually all of their fixed rate accounts. However, to continue with this long standing series for when longer duration fixed rates return, I have applied the percentage change on the 1 year fixed rate to fixes for preceding longer duration terms to illustrate what has happened to the UK savings market.

Halifax ISA's May 2012 Sept 2012 Nov 2012 Mar 2013 May 2013 July 2013 Mar 2014 June 2014 Mar 2015 April 2016 Aug 2016 % Cut
Instant Access
3%
2.75%
2.35%
1.75%
1.35% 1.35% 1.5% 1.30% 1.05% 0.60% 0.40% -87%
1 Year Fix
2.25%
2.05%
2.05%
1.75% 1.75% 1.65% 1.5% 1.40%   0.90% -60%
2 Year Fix
4.00%
3.25%
2.25%
2.5%
2.10% 2.10% 2.05% 1.8% 1.65% 1.25% 1.06% -73%
3 Year Fix
4.25%
3.75%
2.35%
3.00%
2.25% 2.25% 2.25% 2% 1.75%   1.125 -73%
4 Year Fix
4.35%
3.80%
2.40%
3.05%
2.30% 2.30% 2.40% 2.10% 1.85%   1.19% -72%
5 Year Fix
4.50%
4.15%
2.60%
3.10%
2.35% 2.35% 2.5% 2.20% 2.00% 2.00% 1.28% -71%

Again note ONLY the 1 year fix is currently available from the Halifax and the table will be updated when longer duration fixes return.

Having trawled many ISA issuers that like the Halifax ALL offer less than 2% for multi-year fixes, the only bank that really stands out is Julian Hodge's 4 year offering fixed at 1.85%! Yes that's a very long time for a sub 2% rate but this is the dire state of Britain's savings market where to get a half way decent rate one needs to fix for FOUR YEARS! Yes I know there are others that pay marginally more such as the Indian banks where the problem is one has to visit a distant branch, for what? an extra £15 per year? And similar holds true for other providers with their obnoxious small prints trying to hide the game they are playing with savers.

  • Easy Access - Coventry Building Society 1.3%, down from 1.4% with probably more cuts to come.
  • 1 Year Fix - Kent Reliance 1.10% cut from 1.45%
  • 2 Year Fix - Leeds BS 1.40%
  • 3 Year Fix - Shawbrook 1.70% down from 2.15%.
  • 4 Year Fix - Julian Hodge Bank 1.85%
  • 5 Year Fix - Shawbrook 1.90% down from 2%

Yes, I know the rates are all pretty rubbish, but what can one do? This is what happens when the Bank of England supports its banking brethren for 8 years with printed money! all backed by Britain's tax payers. The solution of course is to invest in assets that are LEVERAGED to central bank money printing, such as housing and stocks as I have covered extensively in many articles and videos.

So maybe now really is the time to forget about putting any more money into Cash ISA's and focus on investing and perhaps consumption, and not forgetting if your mortgage rate is above 2% then you should pay that down FIRST! Other alternatives are to top up your pension, after all the tax man will give you an instant 20%+. Have Cash ISA savers considered the stock market? Perhaps the time has come to open a stocks and shares ISA, something to ponder as many dividend yields are HIGHER than fixed rate bond rates!

For more post BrExit analysis implications see the following 2 articles -

And my most recent video on UK house prices -

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

© 2005-2019 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