MSE News: TSB to pay 5% interest on new current account – is it any good?

Kernel_Sanders

InsideInsurance wrote: »

Dont spend time picking mistakes in their "analysts" journalism, you'll be there all day

Yes I agree, the content just hasn't been copy edited competently (if at all).

YorkshireBoy wrote: »

5% is the AER. You can't earn 5%, only the 4.89% gross p.a. rate, because you can't benefit from compounding.
That's the theory...I haven't checked their maths!

Well, I would if I were you! Take the table near the top of this page http://www.moneysavingexpert.com/savings/savings-loophole
It states that 2.4% (net) on £20,000 in the 123 a/c yields £450 after the £2pm fee has been deducted!
I'm presuming the £6 shortfall isn't due to lack of compounding because I don't think Santander pay monthly interest, despite stating this in their website info about this specific a/c.: AER stands for Annual Equivalent Rate and shows what the interest rate would be if we paid interest and added it to your account each year.

innovate wrote: »

It's not really hard, is it, to open a couple more current accounts and to shift £500 about once a month whilst skimming off the interest? Less than an hours work a year, I reckon. Where else do you make £196 for an hour's easy work?

Soho?

MarkFromCornwall

Kernel_Sanders wrote: »

I don't think Santander pay monthly interest,

They do.






.......

YorkshireBoy

Kernel_Sanders wrote: »

Well, I would if I were you! Take the table near the top of this page http://www.moneysavingexpert.com/savings/savings-loophole

I'm really not interested in how MSE arrive at their figures. I know how interest is calculated and paid, and know how to check mine's correct.

innovate

Still worth pointing out errors.

Archi_Bald

Courtesy of Graham1: TSB have now added a new "paperless communication" option - don't forget to update your settings as otherwise your interest payments could/will stop

https://forums.moneysavingexpert.com/discussion/4988566

Hooloovoo

Archi_Bald wrote: »

Courtesy of Graham1: TSB have now added a new "paperless communication" option - don't forget to update your settings as otherwise your interest payments could/will stop

https://forums.moneysavingexpert.com/discussion/4988566

Thanks for the heads-up. Just done mine.

butterflymum

Archi_Bald wrote: »

Courtesy of Graham1: TSB have now added a new "paperless communication" option - don't forget to update your settings as otherwise your interest payments could/will stop

https://forums.moneysavingexpert.com/discussion/4988566

Oops, Archi, I've just posted the info on a separate thread to catch folks attention (and likewise thanked graham1):

https://forums.moneysavingexpert.com/discussion/comment/65715374#Comment_65715374

(great minds think alike, fools seldom differ - you can decide which it is in this case :rotfl:)

Archi_Bald

Can't do any harm to have a separate thread as those who already have the account won't all come back to the old thread.

I wonder whether TSB will write to all their customers about the new option or whether they are just slipping it in.

butterflymum

Wondered that too, as there was no note on log in to say that it was now live and needed action, although the product description on their home page has now been updated and no longer says 'when available'. So, those opening account from now will know they need to register for both paperless statement and correspondence. Do hope no one who opened in previous weeks misses seeing that that it is now live and needs them to actively 'opt-in'.

Graham1

I noticed the new option went live on Halifax yesterday and Lloyds and TSB today. They will probably start to tell customers about it in the coming weeks.