Saving Money with OVO Energy!

TimJR

Hi, I am thinking of paying well over what I need to to my energy company, OVO Energy, because they pay 3% 'interest' as a non taxable bonus on any credit I have with them.


Does anyone know what protection I would have if the company went bust? Would I lose all of the money I have in credit with them?

Nada666

Due to the small print it would be rather stupid to attempt to use it as a savings scheme.

Ovo going bust is not an issue - the sums involved would be trivial.

TimJR

Well, thanks for that! I would be able to pay in over £200 a month and build up a few thousand in a few years. And, while interest rates are so low, it does not seem stupid to me!

Deneb

TimJR wrote: »

Well, thanks for that! I would be able to pay in over £200 a month and build up a few thousand in a few years. And, while interest rates are so low, it does not seem stupid to me!

I suggest you read the T&Cs as Nada666 suggested then, particularly para 11.6

TimJR

Yep, it all looks good to me!


11.6 The Interest Reward scheme is about creating a fairer deal for customers. It’s designed to pass on the interest we earn when customers’ accounts with us are in credit and to reward people for repayment. In order to protect the spirit of this scheme, we need to apply the following extra restrictions.
a. In any year we will not pay interest rewards of more than 12 times the monthly Direct Debit amount we have agreed with you.
b. If you make a significant overpayment into your customer account, then ask for that amount back within six months, we will reclaim any interest reward you have earned from that amount.
c. We can review your monthly Direct Debit at any time.
d. If you choose to leave us during the term of a fixed contract, we will work out how much interest reward you have received during that contract and add it to the final balance you will need to pay us.
e. We can withdraw your entitlements under the Ovo Interest Reward scheme if we feel you are not using it appropriately.

macman

If Ovo went bust you would be in a queue with all the other creditors, and well behind HMRC.
And which part of term 11.6e do you not understand?
If you want 3% interest then put your spare cash into a Santander 123 a/c.

OhReally_2

If you'd prefer 5% interest put your spare cash into a TSB account

wolvoman

OhReally wrote: »

If you'd prefer 5% interest put your spare cash into a TSB account

I see this answer a lot, but it fails to account for the real canny MSE'ers who already have 2 lots of TSB accounts, 2 lots of Santander 123's, Nationwide, plus Lloys Club and so on and so on.

Sometimes we still have some cash left over that we want to work hard as well.

footyguy

TimJR wrote: »

Hi, I am thinking of paying well over what I need to to my energy company, OVO Energy, because they pay 3% 'interest' as a non taxable bonus on any credit I have with them.


Does anyone know what protection I would have if the company went bust? Would I lose all of the money I have in credit with them?

As with any energy provider, if they were to go bust owing you money, you would probably find yourself at the bottom of the creditors list along with all the other unsecured creditors of the business.

It's highly unlikley the company will go bust, and even if they do, that that will be the outcome, but that is the worst case scenario.

But if it worries you that much, consider moving to a supplier/tariff that allows you to pay on receipt of bill. Ensure you provide regular, up to date meter readings and then you should only pay for what you have already used. It will probably cost you a heck of a lot more (since it is widely accepted that paying monthly by DD is often the cheapest option) but what price is peace of mind worth?

:cool:

footyguy

wolvoman wrote: »

I see this answer a lot, but it fails to account for the real canny MSE'ers who already have 2 lots of TSB accounts, 2 lots of Santander 123's, Nationwide, plus Lloys Club and so on and so on.

Sometimes we still have some cash left over that we want to work hard as well.

If you've that much spare cash sloshing around (what is it per Santander account? £20k per account) then you would probably be better investing some of it. See an IFA for more details.

OVO_Energy

Hi TimJR. The 3% APR interest reward is something we offer our customers as a little thank you. J You’ll see this reflected on all your statements whenever your account is in credit. Our interest reward isn’t directly connected to the Bank of England’s interest rates, however it does reflect what’s happening to interest rates generally so we review it every 6 months. Hope this helps! Thanks, OVO