Egg instant access now 3.25% (2.00% bonus).

gmang

This might be a daft question, but as interest is paid annually, can I close the account after, say, 6 months without losing the interest? Annually paid interest is obviously not the same as a 12 month bond, but I would be looking to pull the money out in April next year to stick it into my ISA.

Thanks.

Reaper

Stompa wrote: »

I wonder if I could open a new one though, just to regain the 6 weeks bonus that I've already lost? I might give it a try.

That sounds like a lot of fuss for little money. Consider the lost interest as it goes backwards and forwards between savings and current account.

And if the offer is still open in 6 weeks time you'll have to do it all over again!

Reaper

gmang wrote: »

This might be a daft question, but as interest is paid annually, can I close the account after, say, 6 months without losing the interest? Annually paid interest is obviously not the same as a 12 month bond, but I would be looking to pull the money out in April next year to stick it into my ISA..

This gets asked a lot. Interest is actually calculated on a daily basis and is credited to your account monthly or yearly. When you close the account interest will be added up to the day you close it, you won't lose out.

Megalomaniac

KTF wrote: »

Looking on the help files you can transfer in (using faster payments) if you quote their sort code and your account number. You can also make an instant payment in by debit card. It doesnt have to come from the linked account. That is only used to get money out.

You don't have a linked account with Egg. I think they just want some bank account details to confirm who you are on the application stage. I can transfer from Egg to any other account with a sort-code and account number without any problems at all. It's great!

Milarky

Reaper wrote: »

Interest is actually calculated on a daily basis and is credited to your account on a monthly or yearly basis. When you close the account interest will be added up to the day you close it, you won't lose out.

It's slightly different with Egg - interest (as we've found out recently with the '6.3%' account) is compounded daily - slightly different to the above description. Not sure if there is a monthly interest option either during the fixed rate period (i.e. there wasn't for the '6.3%' FR account)

Stompa

KTF wrote: »

Looking on the help files you can transfer in (using faster payments) if you quote their sort code and your account number. You can also make an instant payment in by debit card. It doesnt have to come from the linked account. That is only used to get money out.

OK, thanks, that sounds good.

Milarky

Stompa wrote: »

I wonder if I could open a new one though, just to regain the 6 weeks bonus that I've already lost? I might give it a try.

You haven't lost anything IMO; the bonus 'was' 1.55% and it's 'now' 2.00% - but still dated from when you opened the account originally and therefore you will potentially receive the 3.25% (i.e. unless the variable bit improves) on the anniversary of opening. If you had closed the account yesterday (or earlier) however you would have 'lost' what amounts to 0.45% extra for the period covered (Good job you didn't then, eh?)

But if by that you mean closing the account to pocket the interest (3.25%) and then opening for 3.25% with 12 months remaining on the bonus period then, yes, you could do that. It is reasonable to assume that Egg's 'go to' rate of 1.25% won't have improved by as much as 2% in 12 months time. But it is equally resaonable to assume that Egg will still be introducing further accounts including (eg) 12 month bonuses in the meantime - so there isn't much chance of missing anything (also IMO)

Stompa

Reaper wrote: »

That sounds like a lot of fuss for little money. Consider the lost interest as it goes backwards and forwards between savings and current account.

And if the offer is still open in 6 weeks time you'll have to do it all over again!

No, you misunderstand, whilst I opened an account 6 weeks ago I haven't actually put any money in it yet. So all I'd be doing was resetting the clock to zero. There would be no lost interest, and the only hassle involved would be opening a new account. Of course, it may well be that they won't let you open another if you already have one open.....

mini_cooper

I've just put the first 10K in and will put the rest of my mortgage money into it as my offset mtg is only being charged @ 1.24%, so even after paying tax I'll be quids in

natman

Thanks for the INFO.

I thought I had just got myself settled with my savings accounts -

Bradford and Bingley at 2.5% Capital one( castle savings at 2.85% ) and Alliance and leicster 3.15%

Now this comes along to throw a spanner in the works - darn it!!!!
I have just opened it, however at the end it highlighted i could not open it as tehy would need to write to me for further info , dont know what they would want, but hey I will await.
I have no experience with egg at all, so heres looking forward to it.......

Thanks again