40K in savings - Is it worth changing account from 3.1% to 3.2%

madeup

Hi All,

Basically I have 40k in savings (have used cash ISA allowance for this year) and would like to know whether it would be worthwhile transferring from ING Direct 3.1% to Santander esaver5 3.2% (both instant access which I need). It takes 3 days to transfer the money so would loss of interest make it a waste of time?

Thanks.

talexuser

Assuming standard rate tax, the difference in interest on 40k is £32 a year or around 9p per day.

calisto

Not to forget, Santander is one of the Spanish banks in crisis.

I remember the stuff that happened with Icesave. I thought I got all my money out before the inevitable, but the yearly accumulated interest stayed in. I eventually got it, but with no interest on the interest that took me months to get back.

That reminds me, I have £50k in the Irish banks via Post-Office. I will be moving that back onshore quicksharp.

MoneySaverLog

calisto wrote: »

That reminds me, I have £50k in the Irish banks via Post-Office. I will be moving that back onshore quicksharp.

The Post office is protected under UK FSCS, as is Santander for that matter.

mulronie

To the OP, this would be worth £32 a year - not a sum to be sniffed at in my book for 2 minutes work. ING claim "It takes up to two business days for your funds to arrive". So assuming the worst, and that you processed this on a Wednesday latest (missing the weekend), 2 days lost net interest on £40k at 3.1% would be £5.44 - so provided you kept the £40k balance for at least 2 months in the new provider, you'd be "winning" versus leaving in ING.

calisto wrote: »

That reminds me, I have £50k in the Irish banks via Post-Office. I will be moving that back onshore quicksharp.

By the way Post Office accounts are run by Bank of Ireland (UK) plc which is authorised and regulated by the Financial Services Authority, so while it's a subsidiary of the Bank of Ireland, it's a UK registered bank in its own right, protected by the UK compensation scheme (FSCS). Link: http://www.postoffice.co.uk/finance/savings-investments/faqs-deposit-protection-schemes#72400292

Gromitt

I'd move it from ING Direct for the simple reason that it isn't covered by UK FSCS, whilst Santander is, and you get a £30 bonus for doing so!

madeup

Hi,

Having read the following T&C with my current ING account I think I would have to transfer to my bank first (being a current account) and then transfer to new santander account. This could all take over a week. Does this sound right?

Thanks.


Replacing your linked account
Please note - the nominated account must:

• be a personal current account in the same name as the Savings Account holder(s)
• be held within the mainland of the UK
• accept Direct Debit instructions
• provide a cheque book (as your first deposit will need to be a cheque from this account).

Please ensure that your surname and initials are pre-printed on your cheque.

Smi1er

But it means you will then have to deal with Santander. An extra £320 pa wouldn't even convince me to do that

catwoman73

I'd move it from ING Direct for the simple reason that it isn't covered by UK FSCS, whilst Santander is, and you get a £30 bonus for doing so!

How do you get this bonus please?

I'm looking for a new savings account and a new ISA (3% ish rates on both with Halifax have just ended) and was looking at Santander as they seem to be offering the best rates ATM - obviously need the money LOL!

madeup

The £30 "bonus" is what I would receive extra in interest should I decide to change accounts.

oramgepekoe

madeup wrote: »

(both instant access which I need)

Why not move half to Santander. Sometimes when you need money in a hurry there's a computer glitch and you can't get hold of it, eg. Tesco last summer when they moved systems. I spread my instant access savings among a few banks / building societies to reduce this risk.