markr
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Post by markr on Dec 10, 2014 15:31:54 GMT
I bunged in the minimum cashback amount today and invested it and the cashback for 6 months. I might not have bothered if I hadn't got £2000 maturing very soon, but it reminded me just how smooth and effortless the Wellesley process is - bank transfer, email same morning saying funds are in, pick term, invest, interest accumulates immediately.
I'm going to miss the 6 month term, it was a nice compromise between RS's monthly market and the various 12 month offerings for parking rainy-day money.
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Neil
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Post by Neil on Dec 16, 2014 11:22:29 GMT
I'm going to ask a stupid question now. There is probably a simple answer ...
With the current system, does this mean rates will never go up? (wishful thinking I know). For example, if the rates did go up, what's to stop everyone requesting "Early Access" to their money on a lower rate and promptly putting it straight into the higher rate?
Am I missing something?
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oldgrumpy
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Post by oldgrumpy on Dec 16, 2014 11:31:17 GMT
If you "cash in" early you will lose all the interest you have already earned which exceeds the rate you would have received on the reduced time span of the bond. If W do increase rates later, they will do it in small enough increments which make the selling and switching unprofitable.
edit: having said that, if a large deposit is only in for short time,then rates go up, you won't have much interest accrued to lose, so you may benefit marginally.
I think.
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markr
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Post by markr on Dec 16, 2014 13:28:39 GMT
I wonder how W would handle a rate rise. If they announced it in advance, lenders would delay making investments until the new rates were in force, but if they don't announce it they'll annoy lenders who've made investments shortly before the change.
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warn
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Curmudgeon
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Post by warn on Dec 16, 2014 13:45:57 GMT
I wonder how W would handle a rate rise. Let's hope we get to find out...
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sand2880
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Post by sand2880 on Dec 16, 2014 14:53:05 GMT
I think that changes made that are beneficial to the customer can be implemented immediatetly, ie interest rate rises but any changes that are detrimental, interest rate falling, need to communictaed 30 days before they take effect.
So I believe they would just happen.
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