What counts as a withdrawal (and other questions)?

mpeel68

Most of the best paying saving accounts have withdrawal restrictions - eg "4 withdrawals per year". What counts as a withdrawal? For example suppose the amount I want to withdraw is greater than the Faster Payment limit - how would I withdraw more than this without incurring more than one withdrawal (or is this not possible?)

Also, what is the best non-current-account interest savings account that pays interest monthly? I don't like annual accounts because I can't keep an eye on what I'm getting and live in worry that my rate was quietly cut three months in...

Also is it better to go for accounts where most of the interest comes from the base rate, or from a fixed (e.g. 12 month) bonus?

Thanks!

Archi_Bald

mpeel68 wrote: »

What counts as a withdrawal?

Every transaction that reduces the balance of your savings account at the time you make that transaction.

mpeel68 wrote: »

For example suppose the amount I want to withdraw is greater than the Faster Payment limit

Faster Payment limits apply to current accounts, not savings accounts.

mpeel68 wrote: »

Also, what is the best non-current-account interest savings account that pays interest monthly?

Check one of the savings comparison websites.

mpeel68 wrote: »

I don't like annual accounts because I can't keep an eye on what I'm getting and live in worry that my rate was quietly cut three months in...

Not sure what you mean by annual accounts? Do you mean accounts that pay interest annually?

Nothing gets cut quietly. You will be told upfront if the rate is planned to drop in the next 12 or so months. You will be notified x days before any rate cut.

mpeel68 wrote: »

Also is it better to go for accounts where most of the interest comes from the base rate, or from a fixed (e.g. 12 month) bonus?

What counts is the total interest you get.

mpeel68

Thanks for the replies - all very clear!

With regards to:

What counts is the total interest you get.

I was thinking about a 1.75% "Real Rate" (variable) savings account vs a 1.7% account where most of that comes from a fixed bonus. The Real Rate account could cut the rate half way through a year, after which the account offering 1.7 with the bonus may not be available any more... Is this a realistic concern? (If so I'd probably go with the 1.7% account, otherwise I'd go with the 1.75% one).

Thanks!

Archi_Bald

I think you will find that both rates are variable. So might as well go for the higher rate.

opinions4u

Archi_Bald wrote: »

Faster Payment limits apply to current accounts, not savings

That depends on the bank.

Gromitt

Archi_Bald wrote: »

Nothing gets cut quietly. You will be told upfront if the rate is planned to drop in the next 12 or so months. You will be notified x days before any rate cut.

The regulator allows a single rate cut of 0.25% or less without any notification.

ANGLICANPAT

Dont forget depending on the particular BS/bank , that closure can sometimes be counted as one of your withdrawals where there is a limit.