The Top Easy Access Savings Discussion Area

10_66

chris1 wrote: »

When is fixed not fixed?

I guess it's the variable part of the rate they've increased, for the older account.

samizdat

No, Egg have varied the fixed bonus upwards on the 2.8% version of the account, on the (reasonable) assumption that nobody will mind if their bonus is increased. Egg would not be entitled to lower the bonus.

boobbby

samizdat wrote: »

No, Egg have varied the fixed bonus upwards on the 2.8% version of the account, on the (reasonable) assumption that nobody will mind if their bonus is increased. Egg would not be entitled to lower the bonus.

They have increased the the fixed bonus BUT only for those that opened the savings account from the 7th August 2009 and it is for 12 months from the date you opened the account. So out again will go my money to a 3rd party from my 2.8% account and back into the new 3.25% account. Takes about a week to go through the system! I suppose it is swings and roundabouts as last year managed to get on the 6.3% account for 12 months although that then dropped to 1.25% in July 2009

Highland_Rambler

Just a caution about the Intelligent Finance savings rate of 2.85%.
This rate applies to their isaver account.
The rate on their standard savings account is 0.05%.
Nope, I haven't got the decimal point in the wrong place -- it's actually worse than the lowest rate cited by Martin.

On the safety issue, perhaps worth noting that IF is now part of Lloyds (and probably for the chop in the not too distant future).

Having said all that, I'm about to move some dosh from cahoot into IF.

alkip

Thought it was about time I changed from my BM esaver2 account which is paying 1.83% and was looking at the IF isaver paying 2.85 but thank goodness I came on here, Egg at 3.25% hmmmmmmmmm, I have an Egg cash back credit card but no savings with them so should be ok as a new customer just wanted to check one thing with you nice folk:

[FONT=Arial, Helvetica, sans-serif]Egg Savings Account (Internet) - get 3.25% gross pa/AER variable (includes an introductory 12 month fixed bonus rate of 2.00% gross pa from the date your account is opened) on balances up to £1,000,000. No interest payable on balances over £1,000,000 during the first 12 months.[/FONT]

Sorry to be a pain but I like to be sure before I plump for something, I'm right in thinking then that this account pays 2.00% fixed plus 1.25% variable for 12 months from the date it is opened?

boobbby

alkip wrote: »

Thought it was about time I changed from my BM esaver2 account which is paying 1.83% and was looking at the IF isaver paying 2.85 but thank goodness I came on here, Egg at 3.25% hmmmmmmmmm, I have an Egg cash back credit card but no savings with them so should be ok as a new customer just wanted to check one thing with you nice folk:

Sorry to be a pain but I like to be sure before I plump for something, I'm right in thinking then that this account pays 2.00% fixed plus 1.25% variable for 12 months from the date it is opened?

You will get 3.25% for 12 months after opening the account... you can add to it as often as you like as interest is calculated daily..after 12 months it will revert back to 1.25% variable. They will keep introducing new 12 month savings accounts at a higher or lower interest rates but be assured these will keep reverting back to lower interest after 12 months so you have to keep transfering your money to get the best rates. They rely on people who can not be bothered!!

Bob

Mr._H_2

boobbby wrote: »

You will get 3.25% for 12 months after opening the account

This is not correct.

There is a bonus that is fixed at 2% for 12 months, which is added to Egg's standard variable rate of 1.25%.

So, open the account now and at the moment you will earn 1.25+2=3.25 % AER. However, if the underlying rate were to be reduced to 0.5%, you'd earn 0.5+2=2.5 % AER.

As the bonus is fixed, the minimum interest that you will earn is 2% AER. Of course, over the next 12 months, the most likely change to the underlying variable rate (if there is one at all) is up

boobbby

Mr._H wrote: »

This is not correct.


As the bonus is fixed, the minimum interest that you will earn is 2% AER. Of course, over the next 12 months, the most likely change to the underlying variable rate (if there is one at all) is up

You are correct!! although my egg savings account in he past had always retained their initial interest before dropping to 1.25% after 12 months which had made me give that rather smug answer. Another bonus is that as the money is in an instant access savings account it is unlikely that the variable part will fall or a mass exodus might follow as it will effect nearly all egg accounts.

JimmyTheWig

boobbby wrote: »

it is unlikely that the variable part will fall or a mass exodus might follow as it will effect nearly all egg accounts.

The rate might well fall if, for example, the Bank of England cuts the base rate again. I.e. if rates fell across the board then egg wouldn't see an exodus.
But hopefully another rate cut is not on the cards.

karie

hello, since egg pay the interest annually, am i right in thinking that if i save £10k for 9 months, then withdraw it, after 12 months i will still receive the interest on the £10k for the 9 months it was in the account?

thanks!