Northern Rock ESaver4, Best Instant Access Savings Account For 2011 Start
Personal_Finance / Savings Accounts Dec 24, 2010 - 07:27 AM GMTBy: Nadeem_Walayat
With the new year less than 10 days away, now is a good time to check the savings rates on your instant access deposit accounts and make the switch so as to maximise interest income, especially as many providers are stilling paying a pittance of less than 1% and virtually all deploy the bonus rate trick to hook customers in then drop the rates to a pittance after a year.
UK Inflation Stealth Theft of Savings
Whilst the UK base interest rate remains at a credit crisis low of 0.5% since March 2009, so as to enable banks to borrow at near zero interest rates to prevent them from going bankrupt, unfortunately the price is being paid for by ALL savers because as of writing NO bank or building society is beating the official inflation rate of CPI 3.3% let alone the more recognised RPI at 4.7%.
UK inflation has remained high throughout 2010, as per in the inflation forecast for 2010 (27th December 2009 UK CPI Inflation Forecast 2010, Imminent and Sustained Spike Above 3%). Which is set against Bank of England propaganda of high inflation always being just temporary and compares against the Banks own forecast for UK CPI inflation to have fallen to under 1% by the end of 2010, as opposed to an projected rate of about CPI 3.4%.
Savers to keep pace with official inflation and savings tax would need to receive an interest rate of 4% (CPI+20% tax). Savers to keep pace with recognised inflation would need to receive an interest rate of 5.7% (RPI+20% Tax). Unfortunately the very best instant access saving rate comes in at just 3% (Northern Rock ESaver4), which therefore means that Savers wealth will continue to be stolen by the Government and Bank of England for the benefit of the banks and for the financing of the £150 billion annual (Labour) deficit.
Whilst Northern Rock is now the market leader in paying the best interest rate on the market with their 3% Esaver 4 account. However, it was Northern Rock that set the credit crisis and bankster bailout ball rolling in September 2007, so it is not with any pleasure that I recommend Northern Rock, only in so far that the rate of theft of value of savings will be marginally less than with any of the other banks.
Northern Rock ESaver 4 Key Facts
- Interest rate fixed for first year at 3% then the rate crashes to a pittance of 1%, so MOVE ON ANNIVERSARY
- Minimum Account balance MUST be £10,000, else they will only pay you a worthless 0.1%.
- Maximum is £100k
- Account is opened and managed online.
Alternatives:
Post Office - 2.9% - Again only for 1 year so move on anniversary.
AA Savings - 2.8% - Again only for 1 year so move on anniversary.
My interest rate forecast for 2011 is due to be completed over the next few days, ensure you are subscribed to my always FREE newsletter to get this and all in-depth analysis and forecasts in your email in box.
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By Nadeem Walayat
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Nadeem Walayat has over 24 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 specialises on UK inflation, economy, interest rates and the housing market and he is the author of the NEW Inflation Mega-Trend ebook that can be downloaded for Free. Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 600 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
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