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    • Diggle123
    • By Diggle123 7th Dec 17, 10:36 AM
    • 16 Posts
    • 21 Thanks
    Diggle123
    Headline Rate suspect?
    From MSE opened a Birmingham Midshires 1.45% account
    In reality it's nearer 1.32. From applying it's ~10 days to get the initial form returned along with a payment form. Then about another ~10 days before you can use the account fully, so you really only get the rate for 11 months, not 12

    Possibly the companies should accept these delays and offer the headline rate for the first 13 months?
    Last edited by Diggle123; 07-12-2017 at 10:36 AM. Reason: Typo correction
    • Steve_xx
    • By Steve_xx 7th Dec 17, 11:09 AM
    • 6,475 Posts
    • 2,705 Thanks
    Steve_xx
    Can you downgrade the Santander 123 to the Lite product and retain the 123 account number?
    • EachPenny
    • By EachPenny 7th Dec 17, 11:14 AM
    • 4,570 Posts
    • 9,306 Thanks
    EachPenny
    My husband and I currently have 3 Santander 123 accounts between us and only make less than £9 in cashback as we have no mortgage .We pay tax at 20%. What I wondered is are we better keeping the three 123's or just the one and moving the £40,000 to BM where I wont be paying the £5 x 2 charge every month? There has been no indication of Santander raising rates on this account.
    Originally posted by Cannyscot
    If you retain one of the 123 accounts then you can still get the cashback, so the income from each of the other two accounts is £20,000 @ 1.5% = £300, less the fee of 12 x £5 = £60, giving a total of £240. That works out at an equivalent rate of 1.2%. If you pay tax on your savings interest then the figure will be slightly less as the £5 fees will be paid out of taxed income.

    Therefore any account paying 1.2% or more will see you breaking even or gaining.

    I've just opened a BM account, but have also used the Tesco internet saver (1.2%) and Ford Money (1.17%). The rates on these accounts have been nudging up over the course of the year, so if one has a significant increase over another I've shifted money between them, but kept the accounts running with a nominal £1 deposit ready to move money back if the situation changes again.

    You might also want to look at the NatWest savings builder account. It is more complex than most, but you can start with £5000 earning 1.5% provided you top the account up with an extra £100 per month. Amounts above £5000 only earn interest at 1% so the effective rate on the whole balance falls slightly over time, but a significant advantage is the account is true instant access with online faster payment withdrawals appearing in the destination account immediately. It looks like people with the BM account might be finding it less than 'instant' access.
    "In the future, everyone will be rich for 15 minutes"
    • EachPenny
    • By EachPenny 7th Dec 17, 11:16 AM
    • 4,570 Posts
    • 9,306 Thanks
    EachPenny
    Can you downgrade the Santander 123 to the Lite product and retain the 123 account number?
    Originally posted by Steve_xx
    I recently asked in branch and was told the account number remained the same if you switch between '123', 'Lite' or 'Everyday'.
    "In the future, everyone will be rich for 15 minutes"
    • EachPenny
    • By EachPenny 7th Dec 17, 11:22 AM
    • 4,570 Posts
    • 9,306 Thanks
    EachPenny
    From MSE opened a Birmingham Midshires 1.45% account
    In reality it's nearer 1.32. From applying it's ~10 days to get the initial form returned along with a payment form. Then about another ~10 days before you can use the account fully, so you really only get the rate for 11 months, not 12
    Originally posted by Diggle123
    It is the same issue as with regular savers - the headline rate is paid on money in the account. If you only have money in the account for 11 months then you get 11 month's interest at 1.45%.

    It would be fairer if they started the 12 months from the date the account was fully opened, but they are not alone in starting the clock running on time-limited offers before the offer can actually be used.
    "In the future, everyone will be rich for 15 minutes"
    • Member42
    • By Member42 7th Dec 17, 11:26 AM
    • 5 Posts
    • 2 Thanks
    Member42
    BM savings
    I agree that the BM systems do seem rather "half-timbered"; quaint, but not as smart as they could be.
    Anyway, after the joy of getting into the account, (see previous posts), I set up a couple of Faster Payments - using the info provided on their site - around 17:30 on 6/12. Of course, being impatient / sceptical, I checked BM immediately and - surprise - nothing showed. However, a check this morning showed both payments received and credited to my BM account, dated 6/12.
    Happy customer.
    • mitchellsx
    • By mitchellsx 7th Dec 17, 11:27 AM
    • 2 Posts
    • 0 Thanks
    mitchellsx
    28,0000 Savings Best Option
    Hi All,


    After some advice I £28,000 worth of savings of which I would like to put in a savings account, I will need access to the savings in around 8 months time, I have had a look around on the website and opened the Birmingham Midshires account at the 1.45%.


    Is this my best option or can anyone recommend a better solution?


    Many thanks
    • EachPenny
    • By EachPenny 7th Dec 17, 12:08 PM
    • 4,570 Posts
    • 9,306 Thanks
    EachPenny
    After some advice I £28,000 worth of savings of which I would like to put in a savings account, I will need access to the savings in around 8 months time, I have had a look around on the website and opened the Birmingham Midshires account at the 1.45%.

    Is this my best option or can anyone recommend a better solution?
    Originally posted by mitchellsx
    If £28,000 represents all your savings then I would open at least one additional 'instant access' account and put some money in that in case of emergencies.

    People are reporting the BM opening and account funding processes to be very slow, so it is possible that withdrawals might be delayed too. Their website says withdrawal payments will be made by FP with funds reaching your account by the end of the next bank working day, but this is far from being 'instant' access.

    If you don't want to go down the current account/regular saver route then I'd also consider the NatWest Savings Builder account. This pays 1.5% on up to £5000, 1% over £5000 up to £10k. This rate includes a bonus payable when you increase the account balance by £100 per month. So in your situation you could open the account with £4200 earning 1.5% and then take £100 from the BM account to NatWest each month giving you £5000 earning 1.5% by the time 8 months is up. Savings Builder has online management and transfers out of the account are true instant payments (subject to any FP delays).
    "In the future, everyone will be rich for 15 minutes"
    • I-LOV-MONEY
    • By I-LOV-MONEY 7th Dec 17, 4:10 PM
    • 992 Posts
    • 563 Thanks
    I-LOV-MONEY
    Just gone to BM page and it would seem the best rate they are now offering for Instant Access is 0.9%, or have I missed something?
    I thank you for reading this message. Maybe you will thank me for posting it!
    • 2010
    • By 2010 7th Dec 17, 4:16 PM
    • 4,179 Posts
    • 3,333 Thanks
    2010
    Just gone to BM page and it would seem the best rate they are now offering for Instant Access is 0.9%, or have I missed something?
    Originally posted by I-LOV-MONEY
    Yes you have missed something because it`s been withdrawn.
    • polymaff
    • By polymaff 20th Dec 17, 9:45 AM
    • 1,892 Posts
    • 809 Thanks
    polymaff
    From MSE opened a Birmingham Midshires 1.45% account
    In reality it's nearer 1.32. From applying it's ~10 days to get the initial form returned along with a payment form. Then about another ~10 days before you can use the account fully, so you really only get the rate for 11 months, not 12

    Possibly the companies should accept these delays and offer the headline rate for the first 13 months?
    Originally posted by Diggle123
    The terms and conditions state that the higher interest rate applies for the 12 month period following your first deposit. As I read that you are wrong to claim that the application period bites into that 12 months. I applied in October, but my first deposit shows as 9th December - the day before I received the data needed to operate the account.
    • pioneer31
    • By pioneer31 20th Dec 17, 10:44 AM
    • 309 Posts
    • 16 Thanks
    pioneer31
    I applied on 6th December when the rate was 1.45%. I have still only received a DD confirmation slip from them and I notice their online rate is now 0.9%.

    I hope I will get the rate I applied for!
    • youngretired
    • By youngretired 20th Dec 17, 12:34 PM
    • 145 Posts
    • 68 Thanks
    youngretired
    I also applied on the 6th December, but had to contact them as I accidently applied for annual (default page from ad) instead of monthly interest and requested them to change it. They confirmed that I would get the 1.45% as I had asked due to their website saying the reduced rate was from the 6th instead of 7th when it was withdrawn.
    • Stan.In.Devon
    • By Stan.In.Devon 20th Dec 17, 12:38 PM
    • 67 Posts
    • 21 Thanks
    Stan.In.Devon
    They have said that the 1.45 rate applies as long as you got in before it was withdrawn online.... rung them recently and they confirmed it. (without realising it I got in with a few hours to spare). They said it was taking a long time to process applications because of the high number of applications, but they would get round to everyone in due course.
    • Stan.In.Devon
    • By Stan.In.Devon 29th Dec 17, 6:34 PM
    • 67 Posts
    • 21 Thanks
    Stan.In.Devon
    Have to say the lengths you have to go to to open a BM Internet savings account defy belief. It's been weeks and weeks and still there are more procedures to complete before they'll let me give them my money .. and that was with me already being a BM account holder.

    I would think you could buy a house in the time taken to open an account.
    • Ifts
    • By Ifts 30th Dec 17, 2:18 AM
    • 1,770 Posts
    • 1,100 Thanks
    Ifts
    You can re-designate old BM Saving Account to their latest offering over the phone.
    Have to say the lengths you have to go to to open a BM Internet savings account defy belief. It's been weeks and weeks and still there are more procedures to complete before they'll let me give them my money .. and that was with me already being a BM account holder.
    Originally posted by Stan.In.Devon
    Not sure if you had an old BM Internet Savings account - But just so you know you can re-designate an old BM Internet Saving Account to their latest offering over the phone...

    I had a old online BM internet savings account on which the bonus had dropped off, a little while back (when they started to offer 1.30% rate) I phoned them and got it re-designated to the latest issue.

    It's easier than going through the whole online application process again - you get to keep your existing BM internet savings account number, same online login details work and the linked account details remain the same. Also no I.D. check where they require you to send in a cheque from the linked account or statements.
    Never let the perfume of the premium overpower the odour of the risk
    • Stan.In.Devon
    • By Stan.In.Devon 30th Dec 17, 10:55 AM
    • 67 Posts
    • 21 Thanks
    Stan.In.Devon
    No, I 'm afraid none of the above applied in my case. Obviously I've been on the phone to them throughout and despite having had accounts with them (yes, they were old ones) I had to start from scratch for the Internet acct. .... I followed their instructions and still haven't had the final part of the jigsaw through my letterbox yet. They've had my cheque (ages ago) but still we wait.

    It's not the end of the world but it certainly hasn't been a quick process.
    • FOREVER21
    • By FOREVER21 30th Dec 17, 3:35 PM
    • 1,715 Posts
    • 1,014 Thanks
    FOREVER21
    I also had an old BM on line saving account, and logged in with my user name and password, also then used one of the security, questions,only then to be told this account has been de registered

    My experience in trying to open a new online Saver was application sent3/Dec. I then within a week got information to say a linked account had been set up.

    I really thought others complaining. must have got it wrong. but no to-date I have not received any more letters.

    I will just have to wait and see if there is any thing happens. One thing If I eventually get a request for the opening deposit I will limit it to the minimum £1. as I just donít trust this lot!
    • Stan.In.Devon
    • By Stan.In.Devon 30th Dec 17, 3:46 PM
    • 67 Posts
    • 21 Thanks
    Stan.In.Devon
    Noted ... but I've received my request for an opening payment by cheque some time ago....and sent it (£1) ..... but that was only one of the many steps I need to take - I'm still not there. In fact I just rang them again because I'm waiting for a "Username". Apparently I should already have it ... they're posting it out to me (again). They can't tell me what it is over the phone and can't email either. This feels like the "Dark Ages", but I guess there's a reason for everything.
    • dekkard
    • By dekkard 4th Jan 18, 4:04 PM
    • 99 Posts
    • 36 Thanks
    dekkard
    The AA are now offering a 1.32% Easy Access account, the best offering out there currently.
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