Why would you get Investec's 1 yr fixed term deposit when its 95-day notice a/c pays the same?

Kernel_Sanders

https://www.investec.com/en_gb/savings-accounts/access-after-a-fixed-term.html

https://www.investec.com/en_gb/savings-accounts/notice-plus.html

The 95 day Notice Plus account not only lets you take money out early with no penalty, it also allows you to extend it to a date that suits you. Furthermore, it lets you open it with £10,000 as opposed to £25,000 for the fixed one. It even pays a 0.05% bonus for days when money isn't under notice. So is the fixed term one a mugs' account or am I missing something?

ColdIron

The interest rate on the notice account is variable so not the same deal as a fixed rate account (which was paying 2.00% until recently)

firestone

while there is no penalty you still only withdraw the percentage for the rate you have chosen.So to get the best rate under the 0% you can't withdraw any without full notice ( or its me that's misunderstood)

Kernel_Sanders

firestone wrote: »

while there is no penalty you still only withdraw the percentage for the rate you have chosen.So to get the best rate under the 0% you can't withdraw any without full notice ( or its me that's misunderstood)

You've not misunderstood the terms of the account. The penalty free aspect I referred to is for when you give 95 days notice. There is no option for instant withdrawls on the 1.85% offering with which I was comparing, so no different to that of the fixed term deposit account.

firestone

guess the 10 or 20% withdrawal option maybe of interest to some but really its a gamble on where rates are going

londoninvestor

firestone wrote: »

guess the 10 or 20% withdrawal option maybe of interest to some but really its a gamble on where rates are going

Exactly. "Why would you get Investec's 1 yr fixed term deposit when its 95-day notice a/c pays the same?" -- one reason would be if you expected interest rates to fall over the next year.

Thrugelmir

Finance houses move their fixed 1 year rates up and down by considerable margins.

Kernel_Sanders

OK, well, I applied for the notice account a couple of hours ago but there is no instant opening (they could have told people this as I had already transferred some of the funds into the linked account). There's not even an acknowledgement of the application in my email inbox.
The 10% or 20% instant access option is a poor deal because you lose more interest then you would putting that slice of the capital into Marcus instead.

londoninvestor

Kernel_Sanders wrote: »

The 10% or 20% instant access option is a poor deal because you lose more interest then you would putting that slice of the capital into Marcus instead.

Agreed, although even the 0% access option is not market-leading: Charter Savings Bank pays 1.9% on a 95-day notice account.
https://www.chartersavingsbank.co.uk/Products/NoticeAccount

Kernel_Sanders

londoninvestor wrote: »

Agreed, although even the 0% access option is not market-leading: Charter Savings Bank pays 1.9% on a 95-day notice account.
https://www.chartersavingsbank.co.uk/Products/NoticeAccount

Thanks LI, that account isn't mentioned in the bit about notice accounts on this site; I wonder if it's because they get no commission for it? It's listed on Savings Champion, from which I suspect MSE gets its information. The bit about Sharia accounts for example looks to have been copied and pasted directly from Savings Champion!
Anyway, I decided to go with your suggestion, so you have saved me a few pounds. They also give you your account details straight away, so I could deposit the funds I had already withdrawn.

londoninvestor

Kernel_Sanders wrote: »

Thanks LI, that account isn't mentioned in the bit about notice accounts on this site; I wonder if it's because they get no commission for it? It's listed on Savings Champion, from which I suspect MSE gets its information.

You're welcome! I tend to think notice accounts are a bit of an afterthought for MSE, so not much active research goes into that part of the page.