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Aldermore To Withdraw Two "Best Buy" Accounts
Comments
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Agree with innovate on everything shes said in this thread.
If you are settling for anything under 3% interest (before tax) you only have yourselves to blame for the lousy return imo.
Plently of accounts offering 3/4/5/6% interest with cashback ontop!
Personally i'd rather dump £30K in premium bonds and have the 'chance' of winning more money than getting a depressing sub 3% interest. Atleast you have the possibility of winning a million, however unlikely.
Each to their own though. I have around 10 accounts now and the smallest interest is 3% (Santander 123).0 -
Yes, just with terms and condition hoops to jump through and not for large amounts (one Santander account excepted, at the lowest end of your range of interest rates)Plently of accounts offering 3/4/5/6% interest with cashback ontop!
With 30k you'll 'on average' win 15 prizes a year. 96% of those prizes (ie, on average, more than 14 of them) will be £25.Personally i'd rather dump £30K in premium bonds and have the 'chance' of winning more money than getting a depressing sub 3% interest. Atleast you have the possibility of winning a million, however unlikely.
So the expected win is £375 for a return on your £30k of 1.25%. If it were so easy to get 6% it seems a bizarre choice to go for the 1.25%, even if it's a tax free return.
Yes you could have the fun of your 15 prizes a year perhaps being the million quid. So long as you keep buying 30,000 entries a month, you will hit the big time after 124,000 years. Maybe less, maybe much longer. But if you do get the big prize when it's your turn after 124,000 years, and all the other prizes on the timelines implied by the odds, you will have achieved the headline 1.5% rate, and exceeded the more likely outcome of the 1.25% return I mentioned above.
Agreed with that!Each to their own though.0 -
bowlhead99 wrote: »Yes, just with terms and condition hoops to jump through and not for large amounts (one Santander account excepted, at the lowest end of your range of interest rates)
With 30k you'll 'on average' win 15 prizes a year. 96% of those prizes (ie, on average, more than 14 of them) will be £25.
So the expected win is £375 for a return on your £30k of 1.25%. If it were so easy to get 6% it seems a bizarre choice to go for the 1.25%, even if it's a tax free return.
Yes you could have the fun of your 15 prizes a year perhaps being the million quid. So long as you keep buying 30,000 entries a month, you will hit the big time after 124,000 years. Maybe less, maybe much longer. But if you do get the big prize when it's your turn after 124,000 years, and all the other prizes on the timelines implied by the odds, you will have achieved the headline 1.5% rate, and exceeded the more likely outcome of the 1.25% return I mentioned above.
Agreed with that!
The so called "hoops" to jump through really arent that bad though. Setting up standing orders takes 15 mins to do on all your accounts and then you can leave it until they expire. Transfering a bank account doesnt take long at all either, just sign up a quick form. I'm already getting £150 interest a month after tax, so having some money in premium bonds for a while isn't really bothering me too much tbh.
I wouldnt use it as a long term basis, but as I plan on buying my first property in a year - 18 months, i'm not too fussed.0 -
These accounts all involve "juggling" money in and out every month (can be as much as £1500) and setting up direct debits and probably have a monthly fee.
NONE of them pay 5/6% and to most people having just one to manage is enough.
Also they probably limit the amount of accounts you can have.
I`m not saying it can`t be done but it`s impractical to most "savers".
The FlexDirect pays 5%. The 6% involves a Regular Saver.
Juggling the money is dead straight forward. Set up a few SOs and the rest looks after itself. Or spend a few minutes each month to do it manually. None of the account requires more than £1K a month, and none of the £1K has to come in a single lump sum.
It's all dead easy but if you'd rather your money lost value each and every month (to inflation), that's of course your choice.
EDIT: PS, to add: how many of you people with immensely busy working lives do have more than £20K in savings? One single 123 account will deal with £20K. And if you have £40K, use 2. Those not so immensely busy will cope with a few more minutes a month looking after their cash.
I will leave you guys to it now. You can lead a horse to water and all that.0 -
EDIT: PS, to add: how many of you people with immensely busy working lives do have more than £20K in savings? One single 123 account will deal with £20K. And if you have £40K, use 2. Those not so immensely busy will cope with a few more minutes a month looking after their cash.
I will leave you guys to it now. You can lead a horse to water and all that.
I have seen you mention previously, about 2 x 123 accounts, as something you were advised by Santander.
Have you actually taken them up on their "offer".
If so how did you go about opening the second account and were there any problems, issues to contend with?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
The FlexDirect pays 5%. The 6% involves a Regular Saver.
The FlexDirect needs £1k into it each month and pays 5% up to £2,500 and only for 12 months.
You can open up to four Nationwide current accounts, however you are only guaranteed the 5% AER promotional interest rate on one FlexDirect account.
The Regular save is not a true 6% but an average and there will be a limit what you can put in each month.
All I wanted to point out is a 2.1% 60 day account is closing today.
Crap rate or not, you wont get a better rate for a savings account unless you tie it up for years.0 -
Yes I havegrizzly1911 wrote: »
Have you actually taken them up on their "offer".
Just applied via Quidco. No probs. Two DDs set up (leaving the cashback-earning ones on the other account), SO for the monthly £500 in place, filled it up with money from esaver when the bonus ended. Not entirely as simple as dumping money into a savings account and then forgetting it but I shall be damned if I settle for sub-2% interest if I can get 3ish.grizzly1911 wrote: »If so how did you go about opening the second account and were there any problems, issues to contend with?0 -
Yes I know that since I do have multiples of these, and am being paid the 5% on all of them.The FlexDirect needs £1k into it each month and pays 5% up to £2,500 and only for 12 months.
You can open up to four Nationwide current accounts, however you are only guaranteed the 5% AER promotional interest rate on one FlexDirect account.
You can also pocket an extra £70 right now if you play your cards right, on a single account.
Yes, there is a limit on how much you can put it. That is the nature of all the Regular Savers.The Regular save is not a true 6% but an average and there will be a limit what you can put in each month.
No, it is not true that it "isn't a true 6%". It is 100% a 6% AER account. If you look at the dripfeed calculator, it will become evident what the value of the 6% account is.
I'll try one last time: if you want to limit the loss of value to your money, you should look further than savings accounts...... you wont get a better rate for a savings account unless you tie it up for years.0 -
I opened the 60 day account for when my 3%+ accounts run out later this year. just as I opened the BM 2.35% and Coventry 2.25% with minimum amounts when available - because when the bonus accounts run out there may be nothing else around as good at that time. If rates change meanwhile adjustments will be made accordingly. Frankly for me it's not worth the hassle of the regular savers for the small maximum amounts involved - just personal opinion.0
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