Best of the Week
Most Popular
1.What Happened to the Stock Market Crash Experts Were Predicting - Sol_Palha
2.London Housing Market Property Bubble Vulnerable To Crash - GoldCore
3.The Plan to Control ALL Your Money is Now at Advanced Stage
4.Why Gold Is Set For An Epic Rally This Spring - James Burgess
5.MR ROBOT NHS Cyber Attack Hack - Why Israel, NSA, CIA and GCHQ are Culpable - Nadeem_Walayat
6.Emmanuel Macron and Banking Elite Win French Presidential Election 2017 - Nadeem_Walayat
7.Trend Lines Met, Technical's are Set - US Dollar is Ready to Rally (Elliott Wave Analysis) - Enda_Glynn
8.The Student Debt Servitude Sham - Gordon_T_Long
9.Czar Trump Fires Comey, Terminates Deep State FBI, CIA Director Next? - Nadeem_Walayat
10.UK Local Elections 2017 - Labour Blood Bath, UKIP Death, Tory June 8th Landslide - Nadeem_Walayat
Last 7 days
How Investors Can Profit From The Coming Resource Wars - 29th May 17
Gold vs. Gold Mining Shares – Just The Facts, Ma’am - 29th May 17
Walkers Crisps Pay Packet £5 Cash Wins After Buying 64 Multi-packs - 29th May 17
SPX/NDX/NAZ Hit New All-time Highs - 27th May 17
GBPUSD Top in Place, GOLD Price Ready to Rocket? - 27th May 17
Silver Mining Stocks Fundamentals - 27th May 17
BBC Newsnight Falls for FAKE POLLS, Opinion Pollsters Illusion for Mainstream Media to Sell - 27th May 17
UK Local Election Results Forecast for General Election 2017 - 26th May 17
Stock Market & Crude Oil Forecast! - 26th May 17
Opinion Pollsters UK General Election Seats Forecasts 2017 - 26th May 17
Bitcoin and AltCoins Crypto Price Correction - 26th May 17
Bearish Head and Shoulders in EURUSD? - 26th May 17
SELL US Stocks - Massive Market CRASH WARNING! - 26th May 17
EURGBP: A Picture of Elliott Wave Precision - 26th May 17
Credit Downgrades May Prompt Stock Market Capital Shift - 26th May 17
Rosenstein and Mueller: the Regime Change Tag-Team - 25th May 17
Stock Market Top - Are We There Yet? - 25th May 17
Should I Invest My Fortune in Gold? Inaugural Lecture by Dr Brian Lucey - 25th May 17
USD/CAD Continues Decline - 25th May 17
Bitcoin Price Goes Loco! Surges through $2,500 Despite Unclear Fork Issues - 25th May 17
The US-Saudi Arms Deal - Sordid Saudi Signals - 25th May 17
The No.1 Commodity Play In The World Today - 24th May 17
Marks and Spencer Profits Collapse, Latest Retailer Hit by Brexit Inflation Tsunami 2017 - 24th May 17
Why Online Trading Platforms Are Useful for Everyone - 24th May 17
The Stock Market Will Tank Hard - 24th May 17
It’s Better to Buy Gold & Silver When It DOESN’T Feel Good - 24th May 17
Global Warming - Saving Us From Us - 24th May 17
Stock Market Forecast for Next 3 Months - Video - 23rd May 17
Shale Oil & Gas Production Costs Spiral Higher As Monstrous Decline Rates Eat Into Cash Flows - 23rd May 17
The Only Metal Trump Wants More Than Gold - 23rd May 17
America's Southern Heritage is a Threat to the Deep State - 23rd May 17
Manchester Bombing - ISIS Islamic Terrorist Attack Attempt to Influence BrExit Election - 23rd May 17
What an America First Trade Policy Could Mean for the US Dollar - 22nd May 17
Gold and Sillver Markets - Silver Price Sharp Selloff - 22nd May - 22nd May 17
Stock Market Volatile C-Wave - 22nd May 17
Stock Market Trend Forecast and Fear Trading - 22nd May 17

Market Oracle FREE Newsletter

Why 95% of Traders Fail

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

© 2005-2016 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

Catching a Falling Financial Knife