Moving savings account

JanineB

Hello, I have a question.

I currently have an easy access savings account with Yorkshire building society in addition to my ISA and monthly saver with other providers.

YBS paid the highest interest at the time when I opened the account nearer the start of the year, but now others such as Egg and ING have higher rates. The interest pays out annually from YBS. I'm not sure if I should move provider and follow the best rates wherever they go, or should I only do this once a year once interest has paid out?

I'm not sure how interest works with easy access accounts at all.

The amount in the account fluctuates a lot as obviously I can take funds from this any time. It usually has between £50 and £1000 in it currently but this will rise significantly in the future as I go along.

Please set me straight on how it works and if or not I should change accounts.

Many Thanks!

Lokolo

You gain interest everyday, but it is in an invisible pot. When the year is up, this money just gets put in your account.

However the pot is always there. So if you close you savings account after 6 months, you will still have 6 months worth of pot. And on closure, the pot gets put into the savings account.

So if you transfer now you will transfer your money, and withit, some interest will go with it.

flyingscotno1

JanineB wrote: »

Hello, I have a question.

I currently have an easy access savings account with Yorkshire building society in addition to my ISA and monthly saver with other providers.

YBS paid the highest interest at the time when I opened the account nearer the start of the year, but now others such as Egg and ING have higher rates. The interest pays out annually from YBS. I'm not sure if I should move provider and follow the best rates wherever they go, or should I only do this once a year once interest has paid out?

I'm not sure how interest works with easy access accounts at all.

The amount in the account fluctuates a lot as obviously I can take funds from this any time. It usually has between £50 and £1000 in it currently but this will rise significantly in the future as I go along.

Please set me straight on how it works and if or not I should change accounts.

Many Thanks!

You can get YBS to pay interest monthly into the account so you will see it accumulate (at 2.08% as opposed to 2.1%). Work out how much extra interest you'll gain from it and go for it. I tend to keep accounts open however rather than close them.

JanineB

Lokolo wrote: »

You gain interest everyday, but it is in an invisible pot. When the year is up, this money just gets put in your account.

However the pot is always there. So if you close you savings account after 6 months, you will still have 6 months worth of pot. And on closure, the pot gets put into the savings account.

So if you transfer now you will transfer your money, and withit, some interest will go with it.

I closed an RBS savings account I had with £0 left in it last month that I'd had had funds in over the year. I got no interest when I closed it for the amount I'd had in it at the start of the year though. Why was this?

Lokolo

JanineB wrote: »

I closed a savings account with £0 lef in it with RBS last month that I'd had had funds in over the year and I got no interest when I closed it for the amount I'd had in it at the start of the year though.

Withdrawing the whole amount and closing are different things.

JanineB

This is what I need explained. What happens with these processes as I am unclear.

Lokolo

JanineB wrote: »

This is what I need explained. What happens with these processes as I am unclear.

Depends on your ISA or normal savings account.

Normal Savings Account

Ring them, go into branch, and ask "to close the savings account and have the cheque made out in your name with the balance plus any interest accured".

ISA

Find a new provider, fill in an ISA Transfer Form, and send it to the existing ISA provider. The rest is all done for you.

JanineB

Interestingly, I did that exact proceedure (filled in all the correst forms etc to get it moved over to Birmingham Midshires) with my RBS ISA that I'd had for 5 years with a balance of over 2K and still received no interest.

Not wanting to get into a discussion about ISA'shough as Im asking about normal savers.

So if there's nothing in the account at the time of closure of a normal savings account, I will get no interest even if I have had over a thousand in it during the year? This is what happened. It was lying dormant as I had to spend the funds and started using YBS as my saver, so I though it best to close it as the rate was 0.01%!!!

Jake'sGran

I seem to be corresponding with the Yorkshire almost every day at the moment. They have our two accumulated ISAs which have matured in August and as it is so slow moving ISA money to another bank or BS I have decided not to reinvest that way as we are of a certain age and can now have more income than I had realised i.e. before paying tax. If you wish to retain funds in an cash ISA but with another provider you need to tell the new provider and they arrange the transfer after you have completed their transfer forms. Of course, the existing holder has to be informed too. Now that we want to close both accounts it is getting messy and every message I get from The Yorkshire is sent by a different person. Generally speaking though, these movements of money from A to B should be simple - if only:rolleyes:

By the way, Principality BS are paying 4.25% for an ISA but it is fixed for three years.

JanineB

Sorry I'm asking about my instant access saver, not ISA's. Thanks for your reply though. Can ANYONE help with this please? The point keeps being missed. Why have I not got any interest from these 2 accounts? And if I call YBS and say "hello can you close my account and move my funds to ......", will I get interest for the time Ive been with them? Please read my initial posts.

Many Thanks for all your help in advance.

JanineB

Please can someone help on this?

Thanks