The Top Easy Access Savings Discussion Area

pecunianonolet

merchant_ac said:

Al Rayan have increased the rate of their Everyday Saver (Issue 3) to 3.05% (from 2.81%).

That's 3.09% AER according to this calculator

Bridlington1

merchant_ac said:

Al Rayan have increased the rate of their Everyday Saver (Issue 3) to 3.05% (from 2.81%).

About time too. It looks like Al Rayan's back in business.

Band7

Bridlington1 said:

merchant_ac said:

Al Rayan have increased the rate of their Everyday Saver (Issue 3) to 3.05% (from 2.81%).

About time too. It looks like Al Rayan's back in business.

Too late as far as I am concerned. There’s no chance I would now move back any money from CHIP or Skipton, both of which pay better interest and are quicker, in and out. 

Anyone else moving back?

pecunianonolet

Band7 said:

Bridlington1 said:

merchant_ac said:

Al Rayan have increased the rate of their Everyday Saver (Issue 3) to 3.05% (from 2.81%).

About time too. It looks like Al Rayan's back in business.

Too late as far as I am concerned. There’s no chance I would now move back any money from CHIP or Skipton, both of which pay better interest and are quicker, in and out. 

Anyone else moving back?

Nope, Skipton for me until further notice and at least until end of tax year due to monthly interest payments. From April I will consider annual interest accounts again.

SeriousHoax

Chip 3.15%

https://www.getchip.uk/savings-accounts/instant-access-account

AmityNeon

Too little too late for Al Rayan.

3.09% AER is insufficient, especially considering transactions are limited to business hours.

GalacticaActual

Thanks for the update SeriousHoax. Just received an email from Chip confirming same and the app shows the new rate too.

I like the way the app shows the accrued interest to date, updated on a daily basis.

We're always aiming to keep the Chip Instant Access Account rate highly competitive. 
So, we’ve just taken it to the top of the easy-access savings tables and have raised your interest rate to 3.15% AER.
This new higher rate is effective immediately, and from today (21 February 2023) all deposits will accrue interest at the rate of 3.15% AER - with your interest paid monthly as per usual. 

alwall

Shawbrook needed a nudge to pay me  the correct interest rate.
I noticed that they were paying me 2.28% instead of the 3.02% monthly interest advertised (3.06% Annually) . 
Needed both a secure message and a phone call before they sorted it out

ForumUser7

alwall said:

Shawbrook needed a nudge to pay me  the correct interest rate.
I noticed that they were paying me 2.28% instead of the 3.02% monthly interest advertised (3.06% Annually) . 
Needed both a secure message and a phone call before they sorted it out

IIRC - Shawbrook releases new issues with higher rates, but does not increase the old issues. Therefore, customers do have to message them to get the rate increased. 

cwep2

flobbalobbalob said:

cwep2 said:

For those with amounts in excess of £50k.... There are other threads on this board which discuss these options.

For us newbies, can you give us some links please.

Money Market Funds: https://forums.moneysavingexpert.com/discussion/6424655/money-market-funds/p1
also: https://forums.moneysavingexpert.com/discussion/6421073/where-to-hold-cash-in-a-sipp-or-s-s-isa

You have dealing fees to buy and sell these (like a deposit and withdrawal fee) and be careful of providers that charge a %age management fee, although this is often capped. iWeb charge £5 dealing fee but nothing else, so if you use say the Royal London fund mentioned in these threads (currently returning above 3.9% daily) and put £50k in for 30 days, you'd probably get >£160 gain (interest) if you took it out, £10 fees (2x£5) which leaves >£150 interest = north of 3.6% return. Obviously the more you put in and longer you hold it, the lower the impact of the fees. 
These funds aim to track/beat SONIA rate, you can see the history here: https://www.bankofengland.co.uk/boeapps/database/fromshowcolumns.asp?Travel=NIxSUx&FromSeries=1&ToSeries=50&DAT=RNG&FD=1&FM=Jan&FY=2013&TD=21&TM=Feb&TY=2023&FNY=&CSVF=TT&html.x=171&html.y=22&C=5JK&Filter=N but if you look at the 1yr performance of these funds, bear in mind that most of the last 12 months interest rates were lower so the return is an average! Look at 1m or 3m performance when BoE rates were above 3%.

Gilts: https://forums.moneysavingexpert.com/discussion/6396294/gilts-101/p1
These are like fixed rate accounts if you hold them to maturity. Lower rates than say 1yr fixes *but* some of these have low coupons (interest) eg Jan2024, April2024 so most of the yield is in form of capital gain, and Gilts are exempt from CGT, so as a higher rate tax payer, the Jan2024 Gilt yields around 3.6%, pays a coupon of 0.125% and the rest of the 3.5% is basically tax free. Dealing charges apply again which will probably erode the yield to closer to 3%, and ideally you hold these to maturity, but they have the advantage that you can sell if you need access to it (unlike some fixed savers) and for higher rate tax payers this 3% is equivalent to almost 5%. Similar but less accessible than Premium Bonds, but for those higher rate tax payers that have maxed out these options and want to stay in cash assets rather than equities it might be an option worth looking at.

Gilts have got a bad rep as not being 'safe' given the recent moves in interest rates, but the key thing to bear in mind is that when you buy the Gilt, if you hold it to maturity you know exactly how much you will get paid and when and it's backed in full by the UK govt, so just like people that put money in 1yr fixes in Feb 2022 at 1.2-1.4% and had buyers regret a few months later, but were locked in, they still got their capital and interest back if they held on. So the current price/value of Gilts held may go down, but the payments you locked in when you bought them are 100% safe if you hold it until it matures. Also long dates Gilts move more than short dates ones with interest rate moves as the main payment (when it matures) is further away.

Anyway I've probably gone on to long for this thread, apologies for those who don't care.