Ovo energy - up to 5% interest for credit balance up to £1000

veryintrigued

I've received a flier from this company and thought this probably better in the Savings than in the Energy part of the forum.

Just a question really - does anyone really use this company on the premise of making (up to) 5% (in year 3) - its 3% in year 1 on balances up to £1000?

It doesn't show up at the top for any G+E best buys for me so Ive discounted it as I'm not likely to swap to them - just wondered if I was the 'last to know' about this offer.

I'll bet they are extremely keen to ensure DD payments match balances such that any interest paid is a minimum!

As I say - just been nosey really!

TheTracker

I do exactly this.
They aren't so keen at all on reducing your DD, and if they do send you a letter, you can override it at will.
The 5% email came a couple of months ago, seems generous based on the 3% I've been enjoying until now.

veryintrigued

Interesting, thanks for the reply.

I don't think the interest gained would equate for the higher price in G+E for me - even with the maximum £50 per year back.

Glad it works for you.

fatbelly

I get 4% from them at present on my credit balance - interest paid monthly.

I originally went with them because the prices were good and customer service was rated excellent. I haven't found customer service that good actually - but things have settled down.

I have built up a large credit balance after they suggested upping my direct debit.

greatkingrat

If OVO were to go bust, is there any sort of protection for credit balances, or could they be lost?

dales1

I would also like to know about credit balance protection.

But in the meantime, MSE recommends their 2 year fix as a top deal, but it ends today (Saturday).

I've already switched, and they seem very efficient so far,

Dales.

TheTracker

greatkingrat wrote: »

If OVO were to go bust, is there any sort of protection for credit balances, or could they be lost?

See https://www.ofgem.gov.uk/publications-and-updates/ofgem-safety-net-protects-consumers-cash`

It seems not a formal protection limit, but more a due consideration in the Supplier of Last Resort guidance for protection of credit balances. e.g. it's feasible in the case of a SOLR arrangement that the supplier caps the balance, but in my view more likely they'd be under great pressure by ofgem to honour credit balances. I consider it a very low risk to keep a grand in credit, others might see it as a large risk. Depends what a grand means to you

talexuser

I just joined the 2 year fix after the MSE energy club BG deal finished, and wondered just how much I could over pay the DD to get the 3%. I assume you would also have to declare the interest to the taxman.

TheTracker

talexuser wrote: »

I just joined the 2 year fix after the MSE energy club BG deal finished, and wondered just how much I could over pay the DD to get the 3%. I assume you would also have to declare the interest to the taxman.

Ovo say "you don't have to pay any tax on the money we pay you, because it's actually a prepayment discount for the energy you'll use in the future"

talexuser

Thanks. Now what if they let you get away with significant overpayment and then at the end of the deal switch with a credit balance, an even better deal

silvercar

talexuser wrote: »

Thanks. Now what if they let you get away with significant overpayment and then at the end of the deal switch with a credit balance, an even better deal

Or even make an initial lump sum payment (in order to protect yourself from heavy winter usage/ to maintain the DD at a lower level/ deposit a credit received from previous supplier).