Ovo ridiculous direct debit

Fairzo

We're paying £150 / month to Ovo (we are high users - obviously...) which is £10 / month more than the DD to Scottish Power before switching in October. I think we should drop to about £80 - £90 month following a review in April so I'm not too concerned as long as it balances out over the year.

backfoot

JasX wrote: »

after tax?.... we should al be opening OVO savings accounts then

Yes it's quite good. However, not so good if you are on a very tight budget and can't find the cash to invest.

sofa-spud

beefturnmail wrote: »

I didn't know they pay interest on credit balances... Can anoyne verify how this works in practice - i.e. how do they calculate the interest paid?

In (partial) answer to my last attempt I have now had my second bill.

It appears that the opening balance (the credit carried from the prev bill) is used as the figure to base the interest on. I was roughly £50 in credit after the first bill(!?) so 3%/365*30 days amounts to approx 12p:rotfl:
This figure was then deducted from my months bill (so interest will not be compounded...) but it does mean that as it is a reduction in the bill, it is also reducing the VAT, nett benefit is thus 3.15% (as has been suggested in other posts on this site).

Not quite the same as getting 3% in a regular savings account, but then there is no tax due as its a discount + you're saving on the VAT. They also have caveats to prevent excessive pre-payment & withdrawals.

If I remained say £50 in credit throughout the year then I would have a discount of £1.50 +VAT for the year, again not massive, but in the current climate with low rates it's quite reasonable IMHO.

george1939

sofa-spud wrote: »

In (partial) answer to my last attempt I have now had my second bill.

It appears that the opening balance (the credit carried from the prev bill) is used as the figure to base the interest on. I was roughly £50 in credit after the first bill(!?) so 3%/365*30 days amounts to approx 12p:rotfl:
This figure was then deducted from my months bill (so interest will not be compounded...) but it does mean that as it is a reduction in the bill, it is also reducing the VAT, nett benefit is thus 3.15% (as has been suggested in other posts on this site).

Not quite the same as getting 3% in a regular savings account, but then there is no tax due as its a discount + you're saving on the VAT. They also have caveats to prevent excessive pre-payment & withdrawals.

If I remained say £50 in credit throughout the year then I would have a discount of £1.50 +VAT for the year, again not massive, but in the current climate with low rates it's quite reasonable IMHO.

For the last 3 months with me being in credit [cash] is shown on my statements [a great saving account] at 3%
so the more you give them each month as well as a [reduction in cost of gas /elect] due to this interest [ any surplus by paying too much in, after the winter period is {yours + interest} not many bank accounts pay you each month 3% [at this moment in time] and the amount is shown on your statement every month [ Bril]

andyrpsmith

I have been with OVO for just about a year and set the DD myself at £250 per month to start. They reduced it to £192 in the spring. I am all electric. My previous DD with Southern was £300 a month.

I have found OVO very helpful and have had no problems at all.