MSE News: Lifeline for stricken savers as Atom unveils one-year account at 2%

edited 30 November -1 at 1:00AM in Savings & Investments
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edited 30 November -1 at 1:00AM in Savings & Investments
Savers have been given a much-needed boost following today's launch of a one-year account offering a 2% rate of return...
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'Lifeline for stricken savers as Atom unveils one-year account at 2%'
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  • jimjamesjimjames Forumite
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    Alternatively get 3% with instant access ....
    Remember the saying: if it looks too good to be true it almost certainly is.
  • bowlhead99bowlhead99 Forumite
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    jimjames wrote: »
    Alternatively get 3% with instant access ....

    On up to £100k in one account? Do tell. :D
  • AnthornAnthorn Forumite
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    Previously I found Atom confusing with having to design my own bank name and design. But this account hits the spot.

    You get a week to deposit funds from £50 - 100,000 and when that "deposit window" closes no more funds can be added. But any number of accounts can be opened. That's what the blurb says.

    No cooling off period but there is FSCS protection.
  • Living_proofLiving_proof Forumite
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    I am a dinosaur and it took me just minutes to open an account and you can choose facial or voice recognition rather than yet another password. I took money out of 0.05% Halifax Isa so quite an increase in interest!
    Solar Suntellite 250 x16 4kW Afore 3600TL dual 2KW E 2KW W no shade, DN15 March 14
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  • MalthusianMalthusian Forumite
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    "Lifeline"? "Stricken savers"? I'd love to know how anyone gets to the point where 0.35% extra on short-term cash is the difference between life or death. I don't see why MSE has to indulge in these Daily Mail style headlines.
  • KTFKTF Forumite
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    Even after you have maxed out all the current account offering a higher rate than this, you still have the option of ratesetter and the like for additional funds so do your research before locking your money away for a year.
  • AnthornAnthorn Forumite
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    KTF wrote: »
    Even after you have maxed out all the current account offering a higher rate than this, you still have the option of ratesetter and the like for additional funds so do your research before locking your money away for a year.

    The problem with Ratesetter as well as Zopa is risk and the possibility of losing one's money. In fact some people would refer to it as probability. For example, This Is Money points to a bleak future as bad debts rise and their rainy day fund comes under pressure.
    http://www.thisismoney.co.uk/money/diyinvesting/article-3669789/Is-RateSetter-s-provision-fund-run-bad-debts-rise-s-important-know-risks-peer-peer-lending.html

    The attraction of a fixed rate bank account with FSCA protection is security and a guaranteed return. In short we know what we're going to get back and we know our money is safe.
  • RollinghomeRollinghome Forumite
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    Anthorn wrote: »
    The problem with Ratesetter as well as Zopa is risk and the possibility of losing one's money. In fact some people would refer to it as probability. For example, This Is Money points to a bleak future as bad debts rise and their rainy day fund comes under pressure.
    http://www.thisismoney.co.uk/money/diyinvesting/article-3669789/Is-RateSetter-s-provision-fund-run-bad-debts-rise-s-important-know-risks-peer-peer-lending.html

    The attraction of a fixed rate bank account with FSCA protection is security and a guaranteed return. In short we know what we're going to get back and we know our money is safe.
    There are also several articles on the same subject in the FT and things have moved on since that article - not in a way that has reassurred some long-term lenders .

    With the coverage of the provision fund falling Ratesetter first changed the way the fund is calculated and have now changed the terms for lenders that will apply from 1 March. See http://p2pindependentforum.com/thread/7831/new-lender-terms-1st-march

    So instead of the 'resolution event' referred to in that article coming into play should the provision fund become insufficient (which would effectively lead to the wind-up of the company), under the new terms funds would be taken from interest due to lenders, and possibly their capital, to boost the provision fund so that the company could be preserved and continue trading.

    It's a significant change and some will be asking if the provision fund is as healthy as Ratesetter insist, contrary to opinions expressed in the FT and others, then why have have they chosen to change the terms in that way now - obliging them to offer free exits to those who object to the new terms. Only lenders can decide the level of risk they're prepared to take so important for anyone think of lending through them to re-assess the position in the light of the new terms.
  • ed44ed44 Forumite
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    Anthorn wrote: »
    The attraction of a fixed rate bank account with FSCA protection is security and a guaranteed return. In short we know what we're going to get back and we know our money is safe.

    Indeed. For this part of my portfolio, return of investment is more important than return on investment
  • edited 24 February 2017 at 9:32PM
    PincherPincher
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    edited 24 February 2017 at 9:32PM
    Do I really want to pay 20% on interest, and god forbid, 40%?

    Even if you only get 2.4% dividend, paying 7.5% tax instead of 20% is a no brainer, surely?
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