Instant Access Savings Accounts Article Discussion Area

Moggles_2

Originally Posted by mrscairns
Will I get 6.5% on £40,000 in [the Tesco instant savings account] as Martin suggests, or 6.25% as the Tesco website seems to say?

The interest rate rises to 6.5% on 15 August 2007

Nick_C

The Tesco website is very misleading. The interest rate on one page is shown as 5.25%, on another its shown as 6.25%. I called Tesco, the 6.25% includes the 1% bonus for 6 months for new accounts opened before 14/8 (14 August 07 - typo corrected - thanks Moggles!). And the rate goes up to 6.5% from 15/8. These rates are for £15k+

Or to summarise - Martin is right!

Moggles_2

Originally Posted by Nick_C
I called Tesco, the 6.25% includes the 1% bonus for 6 months for new accounts opened before 4/8.

The 1% bonus is paid on new accounts opened before 14 August 2007.

Moggles_2

Originally Posted by mrscairns
... we have sold our house and not yet bought again, so we have our deposit which we need to dump somewhere for (hopefully) about 2-3 months. Can anyone suggest what difference this might make to what we do in terms of choosing an account?

Presumably, you would like an easy access account which can be opened quickly and pays a decent rate of interest.

In these circumstances - with just 2-3 months in mind - I would look at your existing savings account(s)/provider first. If the money is in a current account, consider opening your bank's internet savings account.
Caution: if you bank with Alliance & Leicester, HSBC or First Direct, some of their internet savings accounts pay no interest at all, during any calendar month in which you make a withdrawal, so I would avoid those!

If only a market-leading interest rate will do (and you're prepared for the extra effort involved), I like Icesave, minimum balance £250, which pays 6.2 AER before tax.

Also Bradford & Bingley's E-savings, issue 4 which rose to 6.26 AER on 29 July 2007. Both are no notice online accounts with annual and monthly interest options.
Note: some MSEs have reported long delays in opening the Tesco savings account.

Is there an advantage in going for an account with interest paid monthly rather than annually?

If I were you, I'd plump for monthly interest if available, but it's largely a question of personal preference.

s1mon_2

I understand why Martin recommends ICICI as the account with the top rate, but they can be difficult to get an account from due to their ID requirements.

ICICI require proof of ID to comply with FSA money laundering regulations. (As do every bank in the UK) Unfortunately ICICI will only accept certified photocopies of things like passport, driving licence, benefits book... No originals allowed and photocopies must be certified by one of their approved list of people, (solicitor, bank official, accountant, police officer, full list on their website.)

As I don't know any of the required people socially it was going to cost me £50 to obtain the two certified copies that ICICI would accept. (From my solicitor, cheapest I could find)

This was too expensive to open a savings account, so I cancelled my application with ICICI and used Icesave. Not as high an interest rate, but they can do electronic proof of ID using your driving licence and passport, which worked well for me as it was quick and free.

I hope this helps anyone else who is considering applying. Martin or one of the MSE team may wish to put a note about the ID process in the article.

Simon

Dan29

I'm sure this must have already been answered but I can't find it:

I opened a Tesco Instant Access Savings account for the 1000 Clubcard points. Can I open a 2nd account for the 6 month interest rate bonus, or is this for new customers only?

Thanks
Dan

Moggles_2

Originally Posted by Dan29
I opened a Tesco Instant Access Savings account for the 1000 Clubcard points. Can I open a 2nd account for the 6 month interest rate bonus ...?

Yes. Better get a move on though. To qualify for the 1% bonus, your application must be in by 14 August 2007.

TomJ

s1mon wrote: »

ICICI require proof of ID to comply with FSA money laundering regulations. (As do every bank in the UK) Unfortunately ICICI will only accept certified photocopies of things like passport, driving licence, benefits book... No originals allowed and photocopies must be certified by one of their approved list of people, (solicitor, bank official, accountant, police officer, full list on their website.)

I can't find that list, can you link to it?

Moggles_2

Originally Posted by s1mon
photocopies [of passport, driving licence etc.] must be certified by one of [ICICI's] approved list of people

Copies have to be certified by a banker, consulate, public notary or solicitor.

I found the HiSave a/c quick & simple to open. Provided that you're on the electoral roll, you won't need to send docs, as ICICI can check your ID electronically.

That said, I wouldn't recommend them. I persevered with HiSave for a long time because of its consistently high savings rates.

Unfortunately, transfers from my linked a/c which, according to ICICI, should be made in 3-4 working days, have always taken 8 working days or don't happen at all! Some MSEs have reported delays withdrawing money as well

This is a pity because it's a clean, no-tricks a/c, paying a market-leading interest rate. Thankfully, some of its competitors offer this now - Icesave for instance - without the hassle!

Topman_2

shelovestobuystuff wrote: »

I looked at the lloyds tsb regular saver account,8% AER over 12 months,deposit of min £1

You state that you may have to pay tax. I am wanting to open up a savings account with Lloyds Tsb. I am a student (17) and I am completely confused by all aspects of this. I was wandering whether I would have to pay tax? I am in full-time education with a part-time job. I do not pay any form of tax on my earnings. Would this mean I'd pay no tax on interest? Sorry if this sounds stupid, I have little clue as to what Im on about.

Basically I am looking for a Savings account in addition to my Current account. I am looking to put aside roughly £100 p/m. But it may need to be accessed quickly at some point (students = foolish with money :beer:)
Although I intend to save it for at least a year until I leave for University.

Thanks for your help guys

Dan