Natwest Savings Builder

ian1246

Come October, when our mortgage is due for renewal, hopefully we ll be able to get it fixed at 1.62%. If that is the case, i plan to use this saving account to effectively "offset" the mortgage with what would have been the overpayments - allowing us flexibility moving forward should we need the cash for a future house move.  Difference between 1.62% interest & 1.5% interest on £10,000 only works out to be £12 a year, so £12 loss (if that given it wont reach £10,000 for years!) a year for such flexibility is worthwhile.

Those overpayments would be alongside investments - likely a 50/50 split of our spare cash/savings. 

crumpet_man

Why not just use the Marcus 1.35 % account (£15 a year less interest on £10k) for less hassle?

ian1246

crumpet_man said:

Why not just use the Marcus 1.35 % account (£15 a year less interest on £10k) for less hassle?

Because I already hold a Natwest Reward Account - so its less hassle to open a saver with them than a Marcus for less interest!

crumpet_man

Fair enough, it's too much moving/checking for me to think its worthwhile for the few extra pounds.  If you make an error on the deposits and get no interest for a month then even more so.

w0z

More bad savings news, from 20th April the rate is going to reduce to 1%. below 10k and 0.01% above 10k (it was 0.2% if >10k))
What isn't clear is if, because of this reduction, you  then close the account before midnight on the 2nd to last working day of the month (I make that 29th), or reduce the balance to less than £50 more than it was at the deadline of the previous months deadline,  potentially you could lose all of the interest for that month (unless they agree to pay it) as,  technically your balance won't be £50 more than the previous month.
They should have made the change on 30th. (although it's not a big deal to leave it at 1% until the deadline has passed, but still...)
Does anyone know otherwise?

surreysaver

You take the money out, and then put it back in just for the 29th

w0z

surreysaver said:

You take the money out, and then put it back in just for the 29th

yes I'd already worked that out- actually it's easier to leave it in and suffer 0.5 % detriment for 9 days but that's not the point.

RG2015

@w0z, If you balance at the close of business on 29 Apr is not £50 greater than the balance at close of business on 30 Mar you will not get any interest for the month of April.

surreysaver

w0z said:

surreysaver said:

You take the money out, and then put it back in just for the 29th

yes I'd already worked that out- actually it's easier to leave it in and suffer 0.5 % detriment for 9 days but that's not the point.

Yes, but it is a game between us and the banks.  The banks make money by adhering to the letter of their terms and conditions (notice how they didn't advise people of the change until the very last moment).
We make money by adhering to the letter of those terms and conditions too.  If you want to make the most, take the money out on the 20th, then put enough money back in on the 29th so that there is £50 more than there was in it on 30th March, take the money out again on the 30th and job's a good 'en.

schiff

As probably expected RBofS has gone the same route - 1% from 20.4.20.