N/Wide c/a stops paying interest-where next?

Fortyfoot

I have moved the bulk of my Nationwide money to YBS internet saver, have a look. It was paying 3.25%.

Fortyfoot

simax

rb10 wrote: »

All this discussion about Lloyds is worthless now anyway. The rate is now only 4% on balances of £5000-£7000 (much less for lower balances), so there's far more interest to be made from the Halifax account.

(Source for Lloyds rate drop: http://www.lloydstsb.com/rates_and_charges/current_account_rates_curr_page.asp#currentaccountsvantage)

Obviously not if you have £5,000 to £7,000 in there? :rolleyes:

Halifax is not the best for everyone.

rb10

simax wrote: »

Obviously not if you have £5,000 to £7,000 in there? :rolleyes:

Halifax is not the best for everyone.

Purely from the interset you receive, Halifax is higher, especially now that Lloyds have reduced their rates.

simax

rb10 wrote: »

Purely from the interset you receive, Halifax is higher, especially now that Lloyds have reduced their rates.

Sorry, I'm confused..... How is Halifax higher?

rb10

simax wrote: »

Sorry, I'm confused..... How is Halifax higher?

At Lloyds, if you start the month with the maximum of £7000, and, say, it decreases to £6000 by the end of the month, you would get £260 interest per year, before tax.

At Halifax, if you started the month at £1000 and it decreased to just above £0 by the end of the month, you'd get £75 per year before tax from here, plus interest on £6000 in a savings account ~= £195 (taking the YBS account as a high paying, instant access account). So total with the Halifax account is £270 before tax, which is higher than Lloyds.

simax

rb10 wrote: »

At Lloyds, if you start the month with the maximum of £7000, and, say, it decreases to £6000 by the end of the month, you would get £260 interest per year, before tax.

At Halifax, if you started the month at £1000 and it decreased to just above £0 by the end of the month, you'd get £75 per year before tax from here, plus interest on £6000 in a savings account ~= £195 (taking the YBS account as a high paying, instant access account). So total with the Halifax account is £270 before tax, which is higher than Lloyds.

Would still work out better for me, and also means I'm not messing about moving money around all the time.

G_M

Thanks for all the suggestions - decision made. The final element to swing it was Halifax offering £50 bonus if switching in-branch.
Lloyds? Use overseas call centres (sometimes) + too much hastle keeping balance between 5 & 7K.
YBS? not a current account.
Yorkshire bank? 0%
Coventry BS? Rate drops by 0.85% after 1st year.
Leeds BS? Branch operated only.
So, Halifax here I come. Hope the Cust Service proves OK......

apt

Providing you have the money - and don't have access to an account like the Egg 6.3% fix or the Halifax Guaranteed Saver at 6% or better - then the best solution is to open both the Halifax Reward and Lloyds Vantage. Keep near £7,000 in the Lloyds Vantage. Don't use the Halifax Reward (or 3 Rewards if you really want to coin it in) except for moving £1,000 straight in and out each month.

Nick_C

rb10 wrote: »

If you go with Halifax, an account that's basically the same as Nationwide's e-savings is the Bank of Scotland Instant Access Savings Account, this has instant and unlimited transfers to/from Halifax current accounts, and the rate is just a touch higher than Nationwide's e-savings.

Thanks for that. I've banked with Halifax for years, and didn't think about looking at BOS accounts. I always have about £1K of spare cash between being paid on 20th and regular debits going out on the 1st. I've been moving cash to my Web Saver for those 10 days and getting a miserly 0.6%. Just applied for the BOS IASA.

Another complementary account I would recommend to go with your current account is the YBS IASA which pays 3.25% with a monthly interest option and a cash card. Work out how much cash you need each month, and the day before pay day, move that amount to the YBS account using a debit card to pull money from your current account to YBS. The money is credited to the YBS account instantly, but only available after 3 working days. Its debited from your current account the next day.