Instant Access Savings Accounts Article Discussion Area

koru

MSE_Martin wrote:

As coventry first requires a monthly payment - its in the current account article not the savings account article

martin

(it would be more fitting in the regular saver, but then the rate isn't high enough)

The article is about instant access savings, which I interpret to mean that you can withdraw your money when you want with no penalty. Well, you can do that with Coventry First.

I agree that for some people the monthly deposit requirement will mean it is not for them. But I think there will be some people looking for the best instant access savings for whom this is not a problem (and it is fairly easy to get round the monthly payment requirement, by just moving money in and out), so Cov First would be the best choice for them. However, they are not going to look in the current account article because they are looking for a savings account, so they will end up missing the chance to earn an extra 0.15% interest.

I don't think it is fair to compare with Regular Savers, because they generally have quite a low maximum deposit each month, so you get a high rate but on a pretty small amount. In contrast, with Cov 1st you can have a balance of up to £250,000.

MSE_Martin

I will take on board what you say about Coventry First, and when the rate goes up will get it added into the 'other alternatives section' you make a good argument : )

mary

When I rang Coventry last week, I was told that December 1st is likely to be the date rates will rise.

[Deleted User]

koru wrote:

I agree that for some people the monthly deposit requirement will mean it is not for them. But I think there will be some people looking for the best instant access savings for whom this is not a problem (and it is fairly easy to get round the monthly payment requirement, by just moving money in and out), so Cov First would be the best choice for them.

I have often wondered whether this is true in practice. With this sort of account, does the holding institution really just look at raw receipts in isolation, rather than nett receipts?

Has anyone had their 'wrists slapped' for doing that?

koru

Deleted_User wrote:

I have often wondered whether this is true in practice. With this sort of account, does the holding institution really just look at raw receipts in isolation, rather than nett receipts?

Has anyone had their 'wrists slapped' for doing that?

Well I have been doing it for months with no problem so far. I keep most spare cash in Cov 1st, but I need to transfer about £1000 to another account at another bank to meet outgoings. So, I have a set up a monthly online transfer of £2000 from Cov 1st to that account and a monthly online transfer of £1000 back into Cov 1st a few days later.

I guess if you deposited, say, £800, then took out £200 and redeposited the exact same sum the same day, to make £1000 in total, they might be more sceptical, but I think it would be very difficult for them to tell whether the second deposit was the same money or new money.

[Deleted User]

koru wrote:

Well I have been doing it for months with no problem so far. I keep most spare cash in Cov 1st, but I need to transfer about £1000 to another account at another bank to meet outgoings. So, I have a set up a monthly online transfer of £2000 from Cov 1st to that account and a monthly online transfer of £1000 back into Cov 1st a few days later.

So your nett monthly deposit for those transactions is actually negative, or a nett monthly withdrawal of £1000?

koru

Deleted_User wrote:

So your nett monthly deposit for those transactions is actually negative, or a nett monthly withdrawal of £1000?

Yes, in most months my balance goes down, but I make sure there is a deposit of at least £1000. If they felt that this did not meet the conditions of the account, they would pay me a much lower interest rate (and I would close my account forthwith).

joho

The Coventry Fixed Rate e-bond No 12 (5.8%) closed to applications on 21 November 2006, just for peoples information.

2am

I have just come across the Northern Rock Silver Savings instant access online account paying 5.46% AER for folk over 50 with £1 minimum balance .. looks attractive but I have not yet seen any reviews. Comments welcome.

koru

Just had a letter from Coventry BS explaining that although you lose the 0.85% bonus when your account is 12 months old, they have introduced new higher tiers of interest.

So, for the first year you get 5.6% AER on everything. After that you get 4.75% AER on the first £10,000 of your balance. If you are lucky enough to have more than that to invest, you earn 5.35% AER on the next £240,000, which is only 0.1% lower than Martin's favourites, ICICI and IceSave. Above £250,000, the rate drops back to 4.75%.