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Chance for savers to net a better rate
Lucy Tobin03.02.09
Internet-savvy investors could benefit from a savings initiative that sees banks bidding for depositors' funds.
Barclays, HSBC, Royal Bank of Scotland and Nationwide building society are providing interest-rate quotes to investors on MaxBips.com, an auction market place for deposits.
Depositors — individuals, companies or wealth managers — post information on their available funds and the time for which they are willing to lock their cash away. Banks and building societies then have 30 minutes to bid to look after the savings for a fixed period. Savers must put a at least £30,000 up for auction, and have to stump up £49 a year to join MaxBips.
But investors will hope the fee will be offset by bank bids that beat publicly quoted rates.
“This will prove attractive for investors who want the safety of cash but are seeking ways to enhance returns against the plummeting rates on the High Street,” said Angus Willson, an independent financial adviser at Ridgeway Money.
