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'What are easy access savings? I need your help' blog discussion

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This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.




Please click 'post reply' to discuss below.

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  • Peter__2
    Peter__2 Posts: 16 Forumite
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    These are still "easy access" accounts, and for many who just see savings as a place to store cash, it’s not an issue. Yet is it fair to call them "get your money when you want" accounts? Is there a better phrase?

    The first thought that came to me was "limited easy access". Second "easy access with restrictions".
  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
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    While many easy access accounts let you take money out without notice, you might be limited to just two or three times a year (some ban you from doing it more, while others just give big interest penalties for doing it).
    These are still "easy access" accounts
    Not in my book they're not.

    Easy access to me says I can have any amount of my money, whenever I want it.
    I think these should go into a category between "easy access" and "notice accounts". Happy with Peter_'s phrase of "easy access with restrictions".

    This means that (a) anything in the "easy access" category really is easy access and (b) fears that there may be issues because you've mentioned the access are removed to some extent because they are not in the "easy access with restrictions" category so they must honestly be "easy access".
  • Martinslovechild
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    "If you have a current account, you can get your cash out whenever you want."

    Not if it's Santander and you want to withdraw enough money to pay for a car you can't... It took me 4 hours of phone calls and visiting branches before they would release my money to me!!
    Mortgage Feb 2001 - £129,000
    Mortgage July 2007 - £0
    Original Mortgage Termination Date - Nov 2018
    Mortgage Interest saved - £63790.60
    ISA Profit since Jan 1st 2015 - 98.2% (updated 1 Dec 2020)
  • jamesd
    jamesd Posts: 26,103 Forumite
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    If you have limits then easy access is conditional on what the buyer wants. Better to call them restricted access so people can see whether for their needs the access is easy or not.

    A notice account where you can get your money out with a few days notice and interest rate penalty would be restricted access as well.
  • jamesd
    jamesd Posts: 26,103 Forumite
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    It's perhaps of interest also that I no longer use the regulatory definition for instant access. If an account doesn't offer at least outbound Faster Payments I no longer regard it as instant access. If it does, then I'll regard it as instant access even if it has no branch or ATM access.

    That's in part because it'd cost me £5-10 to go to a branch and an ATM is unlikely to have a high enough limit for me to withdraw a substantial amount - say £5-10k in one transaction to move money between accounts.

    It's perhaps a little harsh but if access was only by ATM or branch I'd probably regard it as pocket money access. To occasionally top up the money in my pocket to a comfortable level, not for routine use, which is on cards, not with cash. Going to the branch is something I'd just eliminate as an option automatically because of the cost and inconvenience.
  • Mobeer
    Mobeer Posts: 1,851 Forumite
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    "Fixed rate: Your money’s locked away"
    This seems to be confusing two concepts - limits on transfers of money and the interest rate being fixed.

    Many on-line savings accounts allow instant transfers into a current account, which effectively makes the savings account instant access.
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