Northern Rock Demand Online down to 4%

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sadie

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Northern Rock have dropped their interest rate for their Demand Online from 5% to 4% (annual interest). 3.75% for Monthly interest. Effective 16 February 2009. Oh well, had to end sometime I guess.
 
I got the letter today, apart from the rate going down it also states,

“The Demand Online annual interest rate was guaranteed to be no lower than ECB Base Rate. This expired on 1st Jan 2009 and will not be renewed, however your account Terms and Conditions remain unchanged.”

This would suggest there will be further substantial reductions in the savings rate, possibly even less than the current ECB base rate of 2% and this is expected to fall further.
 
twofor1 said:
I got the letter today, apart from the rate going down it also states,

“The Demand Online annual interest rate was guaranteed to be no lower than ECB Base Rate. This expired on 1st Jan 2009 and will not be renewed, however your account Terms and Conditions remain unchanged.”

This would suggest there will be further substantial reductions in the savings rate, possibly even less than the current ECB base rate of 2% and this is expected to fall further.
Click to expand...

Not necessarily, it just means the guarantee has run out and will not be renewed.
Yes the option to drop the rate is there, doesn't mean they will definitely invoke it.
At 4% still (I think) second only to Anglo in terms of rates available

In fairness its NR's first drop after all the cuts and we hope it includes a provision for the expect March drop. (appreciate might be overly optimistic if ecb goes to 1.5% then 4% on savings would be alot)
 
I have updated the best buys thread here
http://www.askaboutmoney.com/showthread.php?t=102329

At 4% still (I think) second only to Anglo in terms of rates available
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In terms of on demand yes. However, Investec are number 2 in terms of rate but with one months notice.

Anglo Irish Bank: Premium Demand

4.75% (from 29 Sep 2008) (>= ECB+0.5% until 1 Jan 2010) on €1 minimum to €100,000
4.00% (>= ECB unti 1 Jan 2010) on €100,001 to €1m maximum (rate applies to whole balance, not excess)
Interest paid annually.

Investec: One Month Notice

4.25% with 1 month's notice required for withdrawals.
Interest credited monthly. 20% of funds available instantly on one-off basis.

Northern Rock: Demand Online

4.00% on €1,000 minimum.
Online only.
Click to expand...
 
It doesn't take effect until Monday, which is when I'd planned to update the best buys..

Also NR have a 100% UK government guarantee, whereas Investec are only guaranteed up to (IIRC) Stg£50,000.
 
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