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The future of exchange rate from pounds sterling to US $...any opinions?

The future of exchange rate from pounds sterling to US $...any opinions?

Old Jan 18th 2019, 1:40 pm
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Default Re: The future of exchange rate from pounds sterling to US $...any opinions?

Sorry for yet another 'derailing' of a thread, but it is an example of how much current markets are in a state of unexpected surprises.

HSBC UK has been miserly in the amounts of interest it pays on savings accounts for the last several years. Its Premiere Savings (instant access) only last year went from 0.10% interest paid annually to 0.20% (where it remains today). Other accounts have paid up to 5.00%, but only allowed for a maximum deposit of £3,000 yearly.

It has offered a Fixed Rate Saver account for several years with a maximum deposit of £1million. In December of 2017, a 3 year term paid 0.70% annually while a 1 year term paid 0.50%. In September of 2018, a 3 year term rose to 0.85% and a 1 year term rose to 0.65%. Four months later (10 Jan. 2019), HSBC UK has raised the interest rates significantly. For a 3 month term, the rate is 0.45%; a 6 mo. term is 0.55%; but a 1 year term is 1.60%; a 2 year term is 1.80%; and a 3 year term is 2.00%. For the UK, these are among some of the top rates for 1 and 3 year fixed term accounts.

Why the sudden and substantial increase? There could be several different answers, but the movement was a surprise, even amongst HSBC staff.
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Old Jan 18th 2019, 2:52 pm
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Default Re: The future of exchange rate from pounds sterling to US $...any opinions?

Originally Posted by theOAP View Post
Sorry for yet another 'derailing' of a thread, but it is an example of how much current markets are in a state of unexpected surprises.

HSBC UK has been miserly in the amounts of interest it pays on savings accounts for the last several years. Its Premiere Savings (instant access) only last year went from 0.10% interest paid annually to 0.20% (where it remains today). Other accounts have paid up to 5.00%, but only allowed for a maximum deposit of £3,000 yearly.

It has offered a Fixed Rate Saver account for several years with a maximum deposit of £1million. In December of 2017, a 3 year term paid 0.70% annually while a 1 year term paid 0.50%. In September of 2018, a 3 year term rose to 0.85% and a 1 year term rose to 0.65%. Four months later (10 Jan. 2019), HSBC UK has raised the interest rates significantly. For a 3 month term, the rate is 0.45%; a 6 mo. term is 0.55%; but a 1 year term is 1.60%; a 2 year term is 1.80%; and a 3 year term is 2.00%. For the UK, these are among some of the top rates for 1 and 3 year fixed term accounts.

Why the sudden and substantial increase? There could be several different answers, but the movement was a surprise, even amongst HSBC staff.
I saw that and didn’t question the “why” but immediately moved a bunch of savings to the 3 year account. For sums below £50k it is also immediately accessible with the loss of 90 days interest. A nice place to park the “emergency fund” for the next 3 years.
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Old Jan 18th 2019, 7:14 pm
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Default Re: The future of exchange rate from pounds sterling to US $...any opinions?

Originally Posted by theOAP View Post
Sorry for yet another 'derailing' of a thread, but it is an example of how much current markets are in a state of unexpected surprises.

HSBC UK has been miserly in the amounts of interest it pays on savings accounts for the last several years. Its Premiere Savings (instant access) only last year went from 0.10% interest paid annually to 0.20% (where it remains today). Other accounts have paid up to 5.00%, but only allowed for a maximum deposit of £3,000 yearly.

It has offered a Fixed Rate Saver account for several years with a maximum deposit of £1million. In December of 2017, a 3 year term paid 0.70% annually while a 1 year term paid 0.50%. In September of 2018, a 3 year term rose to 0.85% and a 1 year term rose to 0.65%. Four months later (10 Jan. 2019), HSBC UK has raised the interest rates significantly. For a 3 month term, the rate is 0.45%; a 6 mo. term is 0.55%; but a 1 year term is 1.60%; a 2 year term is 1.80%; and a 3 year term is 2.00%. For the UK, these are among some of the top rates for 1 and 3 year fixed term accounts.

Why the sudden and substantial increase? There could be several different answers, but the movement was a surprise, even amongst HSBC staff.
Interesting, I just got an email from my UK bank, M&S Bank - which is a branch of, or operated by, HSBC.

"Choose a term to suit you – 1 year: 1.30% AER/Gross,
2 year: 1.50% AER/Gross, or 3 year: 1.70% AER/Gross"

So, equivalent offer, but lower rates!



Last edited by robin1234; Jan 18th 2019 at 7:16 pm.
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Old Jan 18th 2019, 7:20 pm
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Default Re: The future of exchange rate from pounds sterling to US $...any opinions?

Originally Posted by robin1234 View Post

Interesting, I just got an email from my UK bank, M&S Bank - which is a branch of, or operated by, HSBC.

"Choose a term to suit you – 1 year: 1.30% AER/Gross,
2 year: 1.50% AER/Gross, or 3 year: 1.70% AER/Gross"

So, equivalent offer, but lower rates!


Looks like that means that M&S takes .3%.
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