Most Popular
1. Dow Max Drawdown Bear Stock Market 2022 - Accumulating Deviations from the Highs - 21st Feb 22
2.Putin Starts WW3 in Ukraine, Will Use Tactical Nuclear Weapons, China Prepares Taiwan Blitzkrieg - 28th Feb 22
3.World War 3 Phase 1 - Putin WINS Ukraine War! - 25th Feb 22
4.INVESTORS SEDUCED by CNBC and the STOCK CHARTS COMPLETELY MISS the BIG PICTURE! - 10th Feb 22
5.Will There Be A 2024 US Presidential Election? - 3rd Mar 22
6.Gold and SIlver, Precious Metals Sector Is at a Terrific Buy Spot - 6th Feb 22
7.Why Putin Wants the WHOLE of Ukraine - World War 3 Untended Consequences - 6th Feb 22
8.Dow Stock Market Expected Max Drawdown 2022 - 19th Feb 22
9.Stock Market Calm In the Eye of the Inflation Storm - 4th Mar 22
10.M = F - Everything is Waving! Stock Market Forward Guidance - 7th Mar 22
Last 7 days
Why Ray Dalio is WRONG About China - Principles for Dealing with the Changing World Order - 24th May 22
Globalists Convene to Plan Central Bank Digital Currencies - 24th May 22
After Recent Highs, What’s Next for the Gold Junior Miners? - 24th May 22
Why APPLE Could CRASH the Stock Market! - 21st May 22
Why Is Crude Oil Ignoring US Inventories? - 21st May 22
Here is Why I’m Still Bullish on Gold Mining Stocks - 21st May 22
THE INFLATION MEGA-TREND QE4EVER! - 20th May 22
US Real Estate Investors – Is There An End In Sight? - 20th May 22
How Technology Affected the Gaming Industry - 20th May 22
How To Set And Achieve Reasonable Goals For Your Company - 20th May 22
How Low Could the Amazon (AMZN) Stock Price Fall? - 19th May 22
Bitten by FANG? Clocked by Cryptos? -- 'Air Pockets' Everywhere - 19th May 22
Northern General Hospital Orthopedics Fractures and and Ankle Clinic Consultations Real Patient Experience - 19th May 22
Cathie Wood Goes All in on Teladoc, ARKK INSANE Noob Investing Strategy! - 17th May 22
This is Anything but Positive for US Housing Market - 17th May 22
What Should We Do If There Is No Fed Monetary Policy Pivot? - 17th May 22
All Possible Ways to Earn Free Litecoin - 17th May 22
How low Could the Amazon Stock Price Fall? - 16th May 22
Cathy Wood ARKK INSANITY There is NO Coming Back! - 16th May 22
NASDAQ 100 Stock Market LOWER LOWS & LOWER HIGH - 16th May 22
Sanctions, trade wars worsen US inflation - 16th May 22
AI Tech Stocks Earnings BloodBath Buying Opportunity - 14th May 22
Futures Contract – Trading Crude Oil With USO - 14th May 22
How to Get Kaspersky Internet Security for 80% Discount! Do not Pay Renewal Price! - 14th May 22
Sagittarius A* Super Massive Black Hole Monster at Centre of Our Galaxy REVEALED! - 14th May 22
UK Public Debt Smoking Inflation Gun - 13th May 22
What Happens When the Stock Market Dip Keeps Dipping? - 13th May 22
Biden Seeks Inflation Scapegoats; Gold Advocate Wins GOP Primary - 13th May 22
Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - 12th May 22
The War on Gold Ensures the Dollar’s Downfall - 12th May 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

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

© 2005-2019 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