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Savings bonus for 1 year?

Sorry to ask what may be a stupid newbie question....but I am a bit confused and can't find the answer anywhere.

I see that most instant access accounts are offering a rate including a bonus for the first year. Is the year from the day the account was announced by the bank or building society or for one year from the date you deposit the cash?

My BM telephone account was "Announced" and accepted deposits from June 18th 2009 at 3.15% including 2.65% bonus for the first year.

I deposited money in September 2009... will the interest rate drop to 0.5% on June 18th 2010 (First year of the accounts existence) or stay at 3.15% until the anniversary of my September deposit? Also if it does drop to 0.5% on 18th June do I have to keep cash in the account until September to get my annual bonus?

Sorry to ask, but it seems all accounts of this type state "first year" but don't make clear what the first year is.

Many thanks
thereallyniceman

Comments

  • alanq
    alanq Posts: 4,216 Forumite
    1,000 Posts Combo Breaker
    edited 8 June 2010 at 8:10AM
    If it says for "one year" in the Ts&Cs that means from opening the account. Otherwise a fixed end date is specified. e.g Nationwide's eISA
    "inc 1% bonus fixed until 30/06/2011"
    http://www.nationwide.co.uk/savings/cash_isa/eisa/default.htm

    Whether or not you have to keep the account open for a year to get a bonus rate again depends on the Ts&Cs. In some cases (e.g. Nationwide's eSavings +) a bonus is only paid if the account is still open at the end of a year. In other cases interest is paid at a higher rate until the anniversary or until the account is closed whichever is sooner.

    The only way to be sure in this matters is to refer to the Ts&Cs and not just the advertising blurbs.
  • savetilibleed
    savetilibleed Posts: 1,363 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    My BM telephone account was "Announced" and accepted deposits from June 18th 2009 at 3.15% including 2.65% bonus for the first year.

    I deposited money in September 2009... will the interest rate drop to 0.5% on June 18th 2010 (First year of the accounts existence) or stay at 3.15% until the anniversary of my September deposit? Also if it does drop to 0.5% on 18th June do I have to keep cash in the account until September to get my annual bonus?

    Sorry to ask, but it seems all accounts of this type state "first year" but don't make clear what the first year is.

    Many thanks
    thereallyniceman

    If THIS is your account then it says under the table the 2.65% bonus is paid for the first 12 months. So 12 months from when you opened it, not from the first deposit.

    For the equivalent account currently available, that looks the same (aside from the interest rate of course) says again first 12 months (no specific end date that is different) for the bonus, no withdrawal charges, unlimited transactions etc. If you think about it, if you have the monthly interest option paid to your bank account, it will be at the bonus rate, so having paid it out, they can hardly take it away!
  • Thanks for the advice, but .....

    As savetilibleed points out the BM Telephone account link says 2.65% bonus for 12 months. I opened the account September 2009 with a £20000 deposit. The BM site does not make it clear if "for 12 months" means from the date I opened the account in September or whether the bonus period is only for 12 months from the date that BM announced the account i.e. 18/6/2009 to 18/6/2010.

    Confused..yes, me too! I guess I will find out on 18/6/2010.

    Many thanks
    thereallyniceman
  • Stompa
    Stompa Posts: 8,348 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Confused..yes, me too! I guess I will find out on 18/6/2010.
    Just give them a call and ask. I always do that for bonus accounts to find out the exact date when the bonus will end.
    Stompa
  • savetilibleed
    savetilibleed Posts: 1,363 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Think you'll find that 18 June was when the account was effective from. As you opened your account and deposited money in Sept, it will be a year from the date you opened the account.

    That account you opened was withdrawn 5/1/10 see here so the same info would have been available to view, i.e, bonus payable for 1 year (from opening) even if someone had opened their account the day before 5/1/10, just as when you opened yours in Sept09.

    If you want to be really sure, why not contact them via their contact email form and ask. Or phone them as it is a telephone account. Better to have it in writing though in an email reply to you personally.
  • Jake'sGran
    Jake'sGran Posts: 3,269 Forumite
    I opened one with EGG last summer and have always assumed that the twelve months will run from the day I opened it. It is paying 3.25% which shows quite clearly on my account page together with the date the first deposit was listed. Now you have raised this question I will ask them as I have been sending matured accounts money and need to find another instant access a/c with a good bonus.
  • Stompa
    Stompa Posts: 8,348 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Jake'sGran wrote: »
    I opened one with EGG last summer and have always assumed that the twelve months will run from the day I opened it. It is paying 3.25% which shows quite clearly on my account page together with the date the first deposit was listed. Now you have raised this question I will ask them as I have been sending matured accounts money and need to find another instant access a/c with a good bonus.
    I was quite surprised to receive a letter from Egg a few days ago telling me when my bonus will end. The letter looks to have been sent 30 days before the bonus expiry. Now if only they'd actually had enough sense to tell me in the letter which account it was referring to (I have more than one) I'd have given them full marks!
    Stompa
  • Jake'sGran
    Jake'sGran Posts: 3,269 Forumite
    Stompa wrote: »
    I was quite surprised to receive a letter from Egg a few days ago telling me when my bonus will end. The letter looks to have been sent 30 days before the bonus expiry. Now if only they'd actually had enough sense to tell me in the letter which account it was referring to (I have more than one) I'd have given them full marks!

    I am hoping that they will advise a new account when the present one ends but it is almost bound to be less than 3%. I seem to spend a lot of time looking for accounts with good rates which is why I opened two ISAs for my OH, both for the full amount and both for five years but paying 4.6% with the Leeds BS. He is useless at dealing with his own affairs:(.
  • Stompa
    Stompa Posts: 8,348 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Jake'sGran wrote: »
    I am hoping that they will advise a new account when the present one ends...
    I'm afraid my letter just ends with the line:

    If you want to find out about other savings options, why not take a look at the ways we could help at www.egg.com/savings
    Stompa
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