The Top Easy Access Savings Discussion Area

Nick_C

FindingBBob said:

... I keep a reasonable float of cash in my current account that would cover most "emergency expenses" 

Good heavens.  Why?  I have 13 current accounts.  The total balance for all 13 is currently £14.26.  I have scheduled transfers in from Chase the day before any direct debits are due.  Like Band7, I won't keep money in an account that doesn't pay interest.

Section62

FindingBBob said:

Genuine question  - a lot of people on here seem to be very concerned about speed of access to their funds or how quickly they deposit. Most, at worst, seem to either have same day withdrawal or next working day. Most have at least same day deposit recognition. I keep a reasonable float of cash in my current account that would cover most "emergency expenses" any thing bigger is therefore planned for.. why is speed so important? Am I missing something? 

Like Band7 most of my day to day spending goes on a credit card.  The cash in my current accounts is limited to what is needed to pay DD's, transferred there at most a couple of days before the DD is due.

The money in my easy/limited access accounts is my 'float' to cover bills and deposits into regular savers until maturity of the next fixed rate or RS account.

When I need access to that money it is usually because it is going somewhere else - e.g. from savings account 1, to a linked current account, and then onto savings account 2 (or a different current account).  I like to be able to do those transactions in one sitting, hence speed of transfer being important.  I don't enjoy the hassle of doing a transfer on day 1, then having to wait* until day 2 before being able to move the money on to where it is ultimately destined to go.

For that reason I always have some float in an 'immediate' access account, and then if necessary drawing funds from a slower-access account but it will only be there in the first place if that slower access comes with a worthwhile higher interest rate than offered by the more immediate access accounts.

Equally the speed of deposit is about 1) earning interest asap and not having cash sitting where no interest is paid; and 2) being able to check it has arrived where it should without having to come back later.

FindingBBob

Nick_C said:

FindingBBob said:

... I keep a reasonable float of cash in my current account that would cover most "emergency expenses" 

Good heavens.  Why?  I have 13 current accounts.  The total balance for all 13 is currently £14.26.  I have scheduled transfers in from Chase the day before any direct debits are due.  Like Band7, I won't keep money in an account that doesn't pay interest.

All my DDs go out within a day or so of pay day and SO's to savings accounts likewise. I then keep around £500 for everything else. Anything at the end of the month is moved to savings. I am really not missing out on much in terms of interest on that balance.  

patpalloon

bazza55 said:

I did a test transfer from Santander of £10 to Chip, everything went through fine.
I then tried a second transfer for a larger amount and Santander had flagged the transaction. After speaking to them they said that it failed a name match, even though the name on the Chip account matches and is exactly the same.
So who knows if this was just a bit of an oversight by Santander not wanting funds to be released, because the Chip account has only recently been opened, although why did the £10 go through ok, or because Chip operates slightly differently and the instant saving account is held by Clearbank.
Anybody else experienced a name check issue from their bank while transferring?
I used the OpenBank feature too.

I have had a LOT of issues with Santander locking my account when transferring money - even when it was accounts I had previously transferred to. Investec was one of the accounts that seemed to trigger Santander to freeze my account. But lately it's been fine and I haven't had any problems.

AmityNeon

FindingBBob said:

Genuine question  - a lot of people on here seem to be very concerned about speed of access to their funds or how quickly they deposit. Most, at worst, seem to either have same day withdrawal or next working day. Most have at least same day deposit recognition. I keep a reasonable float of cash in my current account that would cover most "emergency expenses" any thing bigger is therefore planned for.. why is speed so important? Am I missing something? 

For my non-ISA non-fixed cash savings, it's a tier of rates from highest to lowest, which is currently:

• Regular Savings Accounts (7% to 4%)
• Limited Access (YBS 3.5%)
• Zopa Boosted pots (3.26% with 5-day notice)
• Instant Access (i.e. within the 2-hour Faster Payment window, but ideally seconds) as well as Easy Access, depending on rates. Only float amounts are held at this 'tier'. I spread across multiple accounts to mitigate risk, but the bulk is at the highest rate.

Stoozing/cashback credit cards are used for spending. My current accounts have virtually nothing in them, so float amounts must be instantly accessible, although my 'main' current account has an arranged overdraft with a comfortable limit.

CheekyMikey

BigBlueSky said:

FindingBBob said:

Genuine question  - a lot of people on here seem to be very concerned about speed of access to their funds or how quickly they deposit. Most, at worst, seem to either have same day withdrawal or next working day. Most have at least same day deposit recognition. I keep a reasonable float of cash in my current account that would cover most "emergency expenses" any thing bigger is therefore planned for.. why is speed so important? Am I missing something? 

If large amounts are involved and the funds leave your account straight away but don't arrive at the destination until the next day for example you will have lost a days interest.  Say you have transferred the full £85,000 and lost a days interest @ 3% that is £6.99.  For some it might not matter, but for others it might.

Someone who can afford to have £85k sitting in cash is surely not going to worry about missing out on £6.99 interest? 

BigBlueSky

CheekyMikey said:

BigBlueSky said:

FindingBBob said:

Genuine question  - a lot of people on here seem to be very concerned about speed of access to their funds or how quickly they deposit. Most, at worst, seem to either have same day withdrawal or next working day. Most have at least same day deposit recognition. I keep a reasonable float of cash in my current account that would cover most "emergency expenses" any thing bigger is therefore planned for.. why is speed so important? Am I missing something? 

If large amounts are involved and the funds leave your account straight away but don't arrive at the destination until the next day for example you will have lost a days interest.  Say you have transferred the full £85,000 and lost a days interest @ 3% that is £6.99.  For some it might not matter, but for others it might.

Someone who can afford to have £85k sitting in cash is surely not going to worry about missing out on £6.99 interest? 

No idea myself, but to answer the question, just thought that may be a reason for someone to be concerned.

2010

CheekyMikey said:

BigBlueSky said:

FindingBBob said:

Genuine question  - a lot of people on here seem to be very concerned about speed of access to their funds or how quickly they deposit. Most, at worst, seem to either have same day withdrawal or next working day. Most have at least same day deposit recognition. I keep a reasonable float of cash in my current account that would cover most "emergency expenses" any thing bigger is therefore planned for.. why is speed so important? Am I missing something? 

If large amounts are involved and the funds leave your account straight away but don't arrive at the destination until the next day for example you will have lost a days interest.  Say you have transferred the full £85,000 and lost a days interest @ 3% that is £6.99.  For some it might not matter, but for others it might.

Someone who can afford to have £85k sitting in cash is surely not going to worry about missing out on £6.99 interest? 

How do you think they got £85k in the first place.
Look after the pennies ------------------------------------------------

Wheres_My_Cashback

CheekyMikey said:

BigBlueSky said:

FindingBBob said:

Genuine question  - a lot of people on here seem to be very concerned about speed of access to their funds or how quickly they deposit. Most, at worst, seem to either have same day withdrawal or next working day. Most have at least same day deposit recognition. I keep a reasonable float of cash in my current account that would cover most "emergency expenses" any thing bigger is therefore planned for.. why is speed so important? Am I missing something? 

If large amounts are involved and the funds leave your account straight away but don't arrive at the destination until the next day for example you will have lost a days interest.  Say you have transferred the full £85,000 and lost a days interest @ 3% that is £6.99.  For some it might not matter, but for others it might.

Someone who can afford to have £85k sitting in cash is surely not going to worry about missing out on £6.99 interest? 

The reason they're sitting comfortably on £85K could well be because they're the ones who have worried about £6.99 here or there. 

Never a truer saying than 'Look after the pennies and the pounds will look after themselves' or put another way 'if you concentrate on saving small amounts of money, you'll soon amass a large amount'

jak22

There are a range of EA account that from time time have the top rate and so moving funds around is normal. Some banks action a transfer immediately and some show the arrived funds immediately - but others that have attractive rates might only transfer the next working day or take some hours to confirm an updated balance.

These aren't reasons to avoid those accounts - it's just something to take account of when planning to move funds from one account to another - like other issues like maximum daily transfer limits and avoiding triggering transfer queries. 

Surely people can distinguish between funds they might need unplanned access to within a few hours so keeping a balance somewhere that transfers instantly to your current account at a lower rate and larger significant funds elsewhere which are for earning interest. 

Is there actually evidence of a popular account which transfers by the next day "losing interest" - even if the balance appears to be debited as you request the transfer. The actual transfer when it happens will use the Faster Payments system even if the bank batches requests.