One Account at 3.75% vs RBS offset at 3.75% - any difference?

Gobbledigook_2

We are just about to go for RBS offset at 3.75% (v low arrangement fee and no early repayment charges) but someone has told me we'd be better with the One Account at the same rate.

I can't see how it's any different - we are still paying same % on same amount of money surely? Isn't the difference simply that for the one account you have one account that is 'overdrawn' by the amount of your mortgage and the offset is just that savings, current and mortgage accounts are separate?

Does the one account reduce your mortgage quicker for any reason?

I can't see a difference.

TIA!

getmore4less

Whats wrong with one of the other offset providers RBS/one account don't have a good history of customer service.

FD have a no fee 2.89%(65%LTV) or 3.59%(75%LTV) cheaper with the fee
http://www2.firstdirect.com/1/2/mortgages/our-latest-mortgage-offers;jsessionid=00006dAn6DdfYwQs6j9sGKmOZEG:11qkrclbj

Gobbledigook_2

Oh, we like RBS and have always had fantastic customer service from them.

Thanks for link to FD though - will have a look...

getmore4less

problems with the interest rates.

http://forums.moneysavingexpert.com/showthread.html?t=859611&highlight=oneaccount

Gobbledigook_2

Thanks for that. Do you know if the FD offset has an early repayment fee? I can't seem to find that info on their website.

It would be a right hassle to change all our bank accounts over to FD and notify all the DD but it gives us a £100 pm saving compared to the RBS one - argh!

getmore4less

You don't need to move banks you should be able to keep the most of your finances where they are allthough not optimal.

ECRs don't matter with offsets unless you want to close them just leave the money in the offset accounts.

Not sure if there are any restrictions they do cover the fixed deals so I guess not.

I am with barclays but they are not so competative these days for new business.

Gobbledigook_2

Sorry I don't know what ECRs are

Don't all your accounts have to be with FD if it's a FD offset?

getmore4less

Woops typo not ECR, ERC early repayment charges.

Your offsetting accounts do but offsetting a current accounts normal spending does not save that much unless you have many £K needed.

A few well placed standing orders to/from the FD account to a RBS current account will get most of the savings.

Hugbubble

Sorry for slight hijack, but I just wondered, is the RBS 3.75% offset rate fixed or could it change?

The description on the RBS website doesn't make it clear to me

redpete

Hugbubble wrote: »

Sorry for slight hijack, but I just wondered, is the RBS 3.75% offset rate fixed or could it change?

The description on the RBS website doesn't make it clear to me

The table of key facts includes:

Initial Rate 3.75%
Option to switch to fixed rate N/A

So the answer is it is not a fixed rate and it could change.

Hugbubble

redpete wrote: »

The table of key facts includes:

Initial Rate 3.75%
Option to switch to fixed rate N/A

So the answer is it is not a fixed rate and it could change.

Ah, OK. Obviously I was being a bit fick for not picking up on that. Doh. Thanks for the info.

BTW do offset rates tend to change when BOE base rates do?