Kaupthing Edge - extra %s? Using termed deposits instead of regular saving account.

refusnik

I am looking at Kaupthing Edge interest rates and conditions. http://www.kaupthingedge.co.uk/our-products/interest-rates.aspx
Early withdrawal of termed deposit is 1% less gross interest.

Savings account - 6.36% gross (monthly)
3 year termed deposit - 7.67% gross, 6.67% in case of early withdrawal.

So it makes more sense to use 3 year termed deposit even if you plan to redeem early?

E.g. after one month £10,000:
Savings account adds 6.55% * £10K / 12 = £54.58
3 year termed deposit adds 6.67% * £10K / 12 = £55.58

It's hard to plan for 3 years ahead. But to be safe and to avoid closing one big 3yr deposit losing % on the whole amount one can open a lot of small 3yr termed deposits and close as many as needed early if urgent cash is needed during this period.

Nothing to lose? I am confused.

noh

Already discussed. See previous thread.
http://forums.moneysavingexpert.com/showthread.html?t=1072599&highlight=kaupthing+3+year

Nigel

Stompa

http://forums.moneysavingexpert.com/showthread.html?t=1072599

refusnik

Thanks, it confirms my thoughts.