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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
    • 6,432 Posts
    • 2,682 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
    • 3,309 Posts
    • 6,091 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
    • 3,309 Posts
    • 6,091 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
    • 3,309 Posts
    • 6,091 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
    • 3 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
    • 3,309 Posts
    • 6,091 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
    • 977 Posts
    • 552 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
    • 4,161 Posts
    • 3,328 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.
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