Kaupthing Edge fixed term Q?

panther

Just opened a Kaupthing Edge account for my dad. Can I just confirm if you can have more than one fixed term? For example, can he put 4k now into a 12 month fixed term and later on be able to put funds into another fixed term at whatever the % rate will be at that time? thanks.

Farway

yes you can have as many as you want, in fact after reading on here I split my fixed terms just in case I needed to withdraw early

panther

Thanks for the quick reply - that's a good idea to split. My dad will have 20k + interest from a Co-op Bank fixed term that ends in November. I was reading that interest rates may drop shortly so thought it best to open an account now and bung in 4k that he has lying about to guarantee the 7.15% and invest some of the other in another term account at whatever the rate will be at the time.

Jonbvn

KE fixed term accounts are quite good for a couple of reasons, as follows:

1. You can break the deal at any time and still get a very good rate (beak rate of 6.67% on the 3 year term).
2. If you have £20k, you can split it up into 20 x £1k fixed term accounts. In future if you need some of the money, you only need to break the deal for some of the accounts, leaving the rest untouched thereby maximising your return.

coolio_2

I have them in groups of 1k

panther

That's a great idea about splitting it into chunks. If we opted for the 3 year fixed deal at 7.15% AER (7.67% gross). Provided we don't touch it during the 3 year term then does it work out the same amount of interest earned if we opened 20 x 1k terms as opposed to 1 x 20k term. By brain is just not functioning at the mo!

Jonbvn

panther wrote: »

That's a great idea about splitting it into chunks. If we opted for the 3 year fixed deal at 7.15% AER (7.67% gross). Provided we don't touch it during the 3 year term then does it work out the same amount of interest earned if we opened 20 x 1k terms as opposed to 1 x 20k term. By brain is just not functioning at the mo!

It makes absolutely no difference to the return if you have 1 x 20k or 20 x 1k accounts. As stated above, the benefit of the breaking things into 1k chunks is if you ever need some of the money, you don't need to break the whole 20k.

panther

Thanks all. The 4k that was deposited is today cleared and showing in the savings account so I've split that into 4 term accounts and will do the same with the 20k when that matures from the co-op bank. As a non tax payer will have to print off a few R85's as I notice each separate term has it's own account number. Probably easier making a template R85 with the address details already entered so just need to print out and add the different a/c numbers for each term. So far been pretty impressed with this bank.