Withdrawls from Savings Accounts

buffman

With the introduction of Faster Payments, an additional factor when deciding on a savings account is the time that it takes for a withdrawl to reach its destination. Money reacing its destination the following day, costs one day's worth of interest and there is also the loss of flexibility.

I have so far identified four types of withdrawls (assuming that the withdrawl is made during the institution's business day) - with the first three being described as 'Faster Payments' by the institutions concerned.

(1) Money that reaches its destination instantaneously or within a few hours. eg Santander (eSaver), NatWest e-Savings
(2) Money that reaches its destination sometime the following day. E.g. Derbyshire. Nottingham, Coventry
(3) Money that reaches its destination at midnight that day. E.g. Sainsbury's.
(4) Money that takes two business day's. e.g. ING

(2), (3) and (4) are negatives for me as I lose one or two day's interest.

I was wondering whether people are able to help me populate the above catorgaries from their own experiences. I am not interested in current accounts.

CLAPTON

tesco (1)...............

psychic_teabag

Do you actually lose interest ? Or do they give you the interest for the day of withdrawal, then send the money the next day ?

buffman

psychic_teabag wrote: »

Do you actually lose interest ? Or do they give you the interest for the day of withdrawal, then send the money the next day ?

At least one of the institutions that I listed under (2), money left my account on day 1 and arrived on day 2. I questioned this on the phone and it was confirmed that I would lose one day's interest.

Mikeyorks

It will surely dawn on you that the list at 1) will generally comprise the major Banks and 2) the 'agencies'. All the payments in both 1) and 2) will correctly be described as 'faster payment ....... but they do have until close on the next business day to arrive.

http://www.fasterpayments.org.uk/faster_payments/how_to_use_the_faster_payments_service_new/-/page/1946/

In which case - surely your category 4) should be in 2)? ING operate in the EU and have to obey the Payment Service Regulations the same as anyone else.

Santander fits into any one of 1 to 4 ..... depending on what day it is!

psychic_teabag

When Santander have rejected a payment for me, the money seems to stay in the account until they have another go later. So even if it goes next day, you might not lose interest. But I haven't actually examined it in that much detail.

bob792

Northern Rock is in (1)
Payments out arrive within 2 hours, 7 days a week (8pm cutoff )
Payments in usually show within 2 hours but don't clear until 24.00 after working day.

The_Enforcer

Hi,

The bonus rate on my Halifax Web Saver is ending shortly, so I need to replace it with an alternative account.

I use this savings account for two main purposes:

1 - To move wages into and gradually filter back into current account as and when bills are due; and

2 - To drip feed cash into regular savings account.

Therefore, I not only require instant access and unlimited withdrawals, but also faster payments. The process I currently use to get access to savings is Halifax Web Saver > transfer > Halifax Current Acc > faster payment > First Direct Current Acc > DD/SO > bill/regular saver and the movement of funds from savings to current account within a matter of minutes.

My options are:

- ING Savings Account - 3.1%

- Derbyshire BS Netsaver Issue 3 - 3.06%

- Santander eSaver Issue 5 - 3%

On the basis of the earlier posts on this thread I am thinking that the Santander eSaver would be most suitable, especially as I have a Santander current account that I would be an obvious nominated account, which I know handles faster payments in a similar timescale to the Halifax current account. Does anyone know if the ING and Derbyshire accounts likely to enable movement of funds this quickly?

Cheers,
TE

pqrdef

The_Enforcer wrote: »

Therefore, I not only require instant access and unlimited withdrawals, but also faster payments. The process I currently use to get access to savings is Halifax Web Saver > transfer > Halifax Current Acc > faster payment > First Direct Current Acc > DD/SO > bill/regular saver and the movement of funds from savings to current account within a matter of minutes.

You can do immediate faster payments to other banks direct from a Halifax Web Saver.

The simplest replacement would be a Halifax Online Saver. Takes half a minute to open online and gets you another year of bonus interest.

The Santander pays a bit more, and also does immediate FPs to other banks. No nominated account. Easy enough to open if you've already got a Santander account with online access.

With the Derbyshire, withdrawals are overnight. Only one per day and only to a nominated account. Not ideal for your purposes.

Edit - the Santander eSaver also appears to support standing orders, though I haven't actually tested that.

psychic_teabag

From time to time, Santander seems to sit on a payment until the end of the day. Not sure if it's the first (large) payment to a new payee, or what triggers it. But it means I don't entirely trust it to make a payment the same day.

But this is a Santander savings account - current account might be more reliable.

If balance is between 3k and 5k, Lloyds vantage current account is another option at 3%. I think I heard that transfers between Halifax and Lloyds accounts now show up as internal transfers rather than faster payments.

isofa

I've accounts in all those categories and it's a real pain sometimes, why one can clear in 2-3 hours and another in 2-3 days just shows how irritating it can be.

The only difference is accounts with banks that aren't clearing banks will always will always take longer as far as I'm aware (usually small private banks e.g. Aldermore).