one account

tawnyowls

bunking_off wrote:

Not sure I understand your logic. The critical thing is whether the *net* interest on the savings account is better than the interest rate you're paying on your One Account. In this context the only special thing about an ISA is that the gross interest = net interest as it's tax free..

Which is also the case if you've got the money in something like the One account, because any interest earned is deemed to be paying off a debt, hence it's not taxed either. In other words, you're earning interest on any money you have in the One account at 5.6% or whatever the rate is now, and not paying any part of that in tax.

Joe_Bloggs

@tawneyowls
There is a threshold for whether you are better off with the RBS The One Account or not. The interest rate is 5.70% on the difference between your mortgage and savings. If this results in less interest that a conventional life of balance mortgage BofE trackers (say 4.7%) and savings in an ISA or others taxed at 20-40% then it is the way to go. The level of money in savings has to be quite large to benefit on these rates. There are lifetime BofE offset trackers as low as 4.95%.
J_B.

ebba7

I've posted about this before, but I think the One Account flexible option is worth considering. It's at a lower interest rate than the full One Account (currently 12 month discount at 4.64%) with most of the benefits (you can underpay, overpay, borrow up to an agreed facility, transfer money in or out of your current account and take up to 6 payment holidays a year). It suits me better than the full one account as our joint account tends to operate in credit for half a month and then at overdraft for the other half, so having thought about moving to the full One Account I'm not sure we would really benefit from operating our current account through it vs the higher interest rate. No online banking, but phone banking and quarterly statements which suit me fine. If you're interested see https://www.explainone.com (and we went in through a fee-free deal with charcol, but I don't know what they've currently got on offer).