bm savings interest query

randm

mse recommend bm savings Online Extra account from BM Savings* is the market leader, paying 1.6% AER on balances of more than £1,000. The rate includes a 1.1% bonus for a year,

I have just gone through the link to open an account but there is no mention of a 1.1% bonus included - for £1000 + you get 1.35% gross aer - 1.08% net, and then the bonus box reads a fixed bonus of 0.85% will be paid for the first 12 months. am I just reading this wrong, or has their rate now lowered but not been updated on the mse page?

retiree

The 1.6% version has been replaced by a 1.35% offering.

jimjames

If you have £1000 you can get equivalent of 12.5% with tsb and Halifax current accounts.

randm

jimjames wrote: »

If you have £1000 you can get equivalent of 12.5% with tsb and Halifax current accounts.

hi , could you show me where this is please, I don't think its on the mse savings page. no - one is giving 12.5% surely you mean 1.25%

gizz_mo

That's interesting as I just applied for the Online extra issue 14 and have received my account details in the post. On their website issue 14 still shows as having an interest rate of 1.6% for balances over £1,000 but it is now listed under the closed accounts as of 10th Nov. Strange that the one that is currently available which you referred to is Online extra issue 13 - i would have expected the number to go up to issue 15 instead of back by 1. I'm going to have to make sure mine is definitely 1.6% or else no point moving to this account as I am currently getting 1.35% already.

jimjames

randm wrote: »

hi , could you show me where this is please, I don't think its on the mse savings page. no - one is giving 12.5% surely you mean 1.25%

No it isn't listed on mse but it is 12.5% if you combine 2 accounts.

You get 5% on the tsb account for your £1000 which mse don't list. And get £75 per year on Halifax account on the same £1000 by paying it into the account each month and back our again.

Total on your £1000 is £125 per year which is 12.5%

colsten

jimjames wrote: »

And get £75 per year on Halifax account on the same £1000 by paying it into the account each month and back our again.

You actually only get £60 as Halifax pay net of 20% tax, but the principle you described is spot on.

jimjames

colsten wrote: »

You actually only get £60 as Halifax pay net of 20% tax, but the principle you described is spot on.

Yes that's true. I was trying to make the numbers comparable so both were before tax but on the phone it's not so easy to write an essay!

It's still about the best non risk return you can get on £1000

planteria

agreed jimjames..
as you will see randm, a lot of people here are using Current Accounts as Savings Accounts to generate the best returns:)
i am using Halifax, Nationwide and Santander for this purpose.
best 'straight' Instant Access savings account i have is Nationwide Loyalty Saver...but have to have been with them 15yrs to generate 1.5%:(...whereas their FlexDirect account is paying 5%:)

randm

thanks everyone, i actually have a lot more than 1000, my isa 's are all paid up ,i have to say that the idea of putting money into all these accounts and then moving it in and out sounds like such a headache, i have so many passwords and passcodes and suchlike, i will look into the accounts you have listed though, the satander one where you have to have money coming in each month and direct debits set up etc seems such a pain.

badger09

randm wrote: »

thanks everyone, i actually have a lot more than 1000, my isa 's are all paid up ,i have to say that the idea of putting money into all these accounts and then moving it in and out sounds like such a headache, i have so many passwords and passcodes and suchlike, i will look into the accounts you have listed though, the satander one where you have to have money coming in each month and direct debits set up etc seems such a pain.

It takes a few minutes to apply for these high interest current accounts. You only need to do this once for each account.

It takes a few more minutes to move any existing direct debits or to set up new ones if necessary. At Santander you can also earn cashback on some of them. You only need to do this once for each account.

It takes a few minutes every month to cycle the minimum funding needed through each of these accounts, or you can completely automate this process.

There is lots of information on this forum already but we're here to help if you get stuck.

However, if you prefer to settle for 1.35% on your 'more than £1000' when you could get up to 5%, that is your prerogative