New Post Office 3.17% Account

[Deleted User]

The Post Office have started a market leading (as of todays best buys that is) Issue 5 3.17% easy access account.

I last month opened the Issue 4 account which pays 3.01% so I was thinking, right I'll move to the newer one which pays a better rate, the cheeky mares at PO don't allow more than one sole account, and dont transfer amongst their accounts, so speaking to their customer services, I have to close my current PO account, which then would instruct PO to transfer my funds into my nominated account and can take 3-5 working days, then open up a brand new account with PO and transfer my funds back into it, probably another 3-5 working days.

Does anyone think this is a good idea just to earn the extra 0.16%, if so is there an easier way to get this new rate ?

innovate

There's already a thread about this account, may be the mods can merge...

In answer to Deleted_User: suppose it depends how much you have in the account. The max additional interest you would get on, say, £80K over 12 months is £128, but your entire money would be out, earning no interest at all, for some 6-10 working days, which could mean you lose 8-15 days of interest on the whole lot. Assuming you'd get £6.60/day, this would mean losing between £53 and £99 in interest, leaving you with between £29 and £75.

That's on £80K - - you can do the numbers with your balance and decide whether it's worth it for you.

EDIT: Oh -- just noticed my numbers are based on gross interest - - most people would have to take some tax off.

talexuser

I assume you can open the new account online with £1 direct from your debit card (as I did) once the old one is closed, while the balance churns in and out of accounts and you wait for the new one to become active for transfer in.

The extra interest is around £1.30 per full year per £1000 deposit for standard taxpayer. Only you can decide if it's worthwhile for your balance.

[Deleted User]

innovate wrote: »

There's already a thread, may be the mods can merge...

In answer to Deleted_User: suppose it depends how much you have in the account. The max additional interest you would get on, say, £80K over 12 months is £128, but your entire money would be out, earning no interest at all, for some 6-10 working days, which could mean you lose 8-15 days of interest on the whole lot. Assuming you'd get £6.60/day, this would mean losing between £53 and £99 in interest, leaving you with between £29 and £75.

That's on £80K - - you can do the numbers with your balance and decide whether it's worth it for you.

Thanks, yes I saw the other post, but wasnt aware on the rules on adding my question to someone elses thread. will remember for next time. I have around £20K so based on your calculations maybe the hastle isnt worthwile for a few quid.

[Deleted User]

talexuser wrote: »

I assume you can open the new account online with £1 direct from your debit card (as I did) once the old one is closed, while the balance churns in and out of accounts and you wait for the new one to become active for transfer in.

The extra interest is around £1.30 per full year per £1000 deposit for standard taxpayer. Only you can decide if it's worthwhile for your balance.

Post Office account opening is not the quickest, you open the account and wait days for you to get seperate letters, with your account, pin and temporary login. so will probably stick with the issue 4 account until a new provider pops up with a better rate

innovate

it's all in the other thread - - - - - - - you get your sort code and account number for the 3.17% one instantly.

If you already have an account with them, you shouldn't need to wait for new userid and PIN - just continue using what you already have.

May be open a "normal" saver and put £1 in, to ensure you always have at least one account and they don't take away your login.

[Deleted User]

innovate wrote: »

it's all in the other thread - - - - - - - you get your sort code and account number for the 3.17% one instantly.

If you already have an account with them, you shouldn't need to wait for new userid and PIN - just continue using what you already have.

May be open a "normal" saver and put £1 in, to ensure you always have at least one account and they don't take away your login.

even though the T&C's say you can only hold one sole account, will it let me register a new account before i've closed the old one ?

innovate

probably not - - pls check the other thread, there was some discussion about it IIRC