5 % net savings account with scottish power?

littlemrtinkle

Plug into a new way to pay with guaranteed savings

Pay in Advance* is a unique gas and electricity option from ScottishPower.

As the name suggests, you pay for a year or more in advance. Based on what you've spent in the past year, we work out what your energy needs are likely to be over the next year.

By paying in this way, you benefit from a 5% discount on our standard monthly Direct Debit prices - until your initial payment runs out.

Just select 'Change my service' from the menu options on the following page and select Pay in Advance from the available options.

masonic

If this really results in a 5% discount on your energy prices, then it would offer considerably more than you'd get from putting that money in a 5% savings account and using it to fund a monthly direct debit. It's rather like a regular savings account, but in reverse. For a basic rate taxpayer, the equivalent interest rate needed in a savings account would be about 11%. Of course, if there's a cheaper supplier, that may negate the benefit.

littlemrtinkle

i would be interested in hearing other peoples opinions on this, because it seems a good deal on the face of it.

Geoffo_M

Eon pays 6% discount for paying by direct debit - and you don't "pay in advance". It's just a years usage divided by 12

masonic

Geoffo_M wrote: »

Eon pays 6% discount for paying by direct debit - and you don't "pay in advance". It's just a years usage divided by 12

Most suppliers offer a discount for direct debit billing. This is an additional discount to the direct debit rates. If Scottishpower comes up cheapest (or close to cheapest) for direct debit billing, then this pay in advance tariff is obviously going to work out cheaper again.

BruceyBonus

At 3000kwh (my annual consumption), Scottish Power direct debit on their cheapest tariff would cost £366.88.

My current tariff, British Gas Click Energy 6, costs £295.24.

5% off Scottish Power would cost £348.54, so still £53.30 more expensive - plus I'd have to pay upfront.

bristolleedsfan

littlemrtinkle wrote: »

i would be interested in hearing other peoples opinions on this, because it seems a good deal on the face of it.

Around the Easter period, Quidco was offering 100.00 tax free for a dual fuel switch to Scottish Power with no tie ins, some people switch every few months and get 60.00+ Cashback each time. :cool:

KTF

I cant see any details about this on their website.

Edit: Found it: Poll: http://www.scottishpower.co.uk/Home_Energy/Product_Prices/Pay_in_Advance/

Edit 2: I put the details pre pay this v Online Energy 4 (my current tariff) for the Southern region into a spreadsheet:

http://spreadsheets.google.com/ccc?key=pnwgXkWLQ1noBFXq4e4vacQ

For me, online energy 4 is still cheaper. Its still hideous to work out which is best though.

michaels

Are you locked in for 12 months or can you switch out - and if you can do you think they remember to reclaim the extra 5% when they re credit you? DO they take payments by credit card for cashback and then refund to bank account?!

KTF

The press release says cash or direct debit only:

To qualify, customers who pay via either cash quarterly or direct debit, must pay a minimum of one year’s estimated energy usage in advance – up to a maximum of £20,000.

From: http://www.scottishpower.com/PressReleases_1843.htm

masonic

michaels wrote: »

Are you locked in for 12 months or can you switch out - and if you can do you think they remember to reclaim the extra 5% when they re credit you? DO they take payments by credit card for cashback and then refund to bank account?!

I've not yet come across an energy supplier that accepts payment by credit card.

The T&Cs (which are at the end of the pricing information leaflet on their website) are pretty simple. You pay the greater of £500 or your estimated annual usage and in return, you get billed on the 5% discounted tariff until that money runs out. There isn't any lock-in and there doesn't appear to be anything that would allow them to re-bill you at a higher tariff if you left after a short time.