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Do you regularly change savings accounts?

When I had some money to save a couple of years ago I took advice from this website and put it in the highest instant access savings account (as I might have needed to withdraw some quickly). Then I looked at it again last year and moved it somewhere else. But it seems the best accounts change quite regularly.

So do you change your savings accounts regularly? If so do you close the old one? Or keep it open in case they become the best buy again?

It is a hassle setting up new accounts as you have to prove who you are etc.

My current account is with A&L, even though I am past the 1st year high interest offer, they still seem to pay the best, but my savings is with Bradford and Bingley which were the best buy at the time. I find it takes ages to move the money from one to the other (some recent unemployment means I've had to put money back into my current account). I've just worked out that the A&L pay more on their savings account than B&B now and moving money from A&L current to savings will be instant. Although they are not the best buy (but not far off) I like being able to move money instantly. So in this situation would you close the B&B or just keep it open with £1 in it?

Comments

  • Stavros_3
    Stavros_3 Posts: 1,288 Forumite
    Yes it is a nuisance. I've been with the B & B for years, they are now onto e-saver 7. You do need to keep an eye on your account rates and this website. Had I not read snowman's thread I wouldn't have known that B&B had closed saver 6 and opened saver 7.
    Liquidity is when you look at your investment portfolio and **** your pants
  • D1zzy
    D1zzy Posts: 1,500 Forumite
    The only reason to keep old accounts open is so that you don't have to do all the identity stuff when you want to open a new account with their latest offering. As far as I can see new offers always relate to a "new account" and once theere is a new account ( with a slightly different name) interest rates on the previous offerings plummet. - make sure you know the correct name of any account you open so that you can check rates correctly:
    Couple of examples
    LTB
    On-line saver
    followed by
    Internet Saver
    followed by
    E-saver

    A & L
    E-saver
    E saver issue 2
    E saver Issue 3
    E saver issue 4
  • juicyjude
    juicyjude Posts: 670 Forumite
    It just gets so frustrating all the time opening an account then two minutes later they close it and offer better rates to new customers, such a hassle. I have given up at the minute doing this as the rates are so poor the hassle just doesnt seem to justify such rubbish returns.Hmm rant over
  • Primrose
    Primrose Posts: 10,693 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've been Money Tipped!
    Yes, changing accounts is a real hassle but in the current climate I fear there's no other option if you want to get the best interest rates on your savings. Over the past 3 or 4 years we've opened various online savings accounts and do switch our savings around, including using fixed term savings accounts. When we withdraw money out of instant savings accounts we just leave a few pounds invested in case their rates improve and we want to use them again without the hassle of going through the money laundering process. Our ING account now only contains the princely sum of £8. It must be irritating them to death in terms of admin costs but that's the price they have to pay for giving their customers such a lousy deal in the past. The only thing one has to remember is to move a couple of pounds in and out of these accounts every couple of years to avoid them becoming classified as 'Dormant'. I now have a month-end reminder inserted in my computer diary to check the interest rates on our accounts. The Bank of England interest rates have changed so frequently lately that if you don't check regularly you run the risk of joining the silent majority who are losing out through apathy and few savings institutuions actually contact you to notify you of a rate change. Not many people have time to scan the newspapers either looking for the Interest Rate change notices which banks insert there.
  • Yes :)

    Every few months.
  • GeorgeHowell
    GeorgeHowell Posts: 2,739 Forumite
    Yes, whenever appropriate, It's usually a bit easier with online accounts. But it's not worth doing for piddling differences in interest because the time when the the money is in limbo often eats away the benefit. Regarding the likes of Bradford & Bingley moving through issue after issue and leaving the previous issues disadvantaged, you just have to keep looking at their websites -- I do so about once a month. It's all very time consuming and arduous, but the wide boys who run the banks these days depend on people who cannot or will not move their money regularly to get away with a lot of their dirty little tricks. I often leave £1 in accounts that I abandon in case they come back later as a beneficial option.
    No-one would remember the Good Samaritan if he'd only had good intentions. He had money as well.

    The problem with socialism is that eventually you run out of other people's money.

    Margaret Thatcher
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