The Top Easy Access Savings Discussion Area

FishInGlass

RCI Bank Freedom Savings 3.25% AER gross annual from today (up from 3.05%) - info via email but not on website yet.

Dear Mr xxxxxxx,

We are pleased to let you know that we have increased the interest rate on our FREEDOM SAVINGS effective from 18th April 2023.

As usual, RCI Bank will increase the rate we offer to our existing customers to match the higher rate we offer to new customers. There's nothing you need to do; the rate has already been applied to your account.

The previous rate along with the new rate payable on your account are detailed below for your information.

Current rate	New higher rate
3.05%	3.25%

OceanSound

RG2015 said:

RG2015 said:

Band7 said:

Ford seem a bit confused about Gross and AER. They were meant to say their new rate is 3.27% gross and 3.32% AER

Now I may be wrong but I thought the term gross was meant to distinguish from net, meaning gross payment or payment net of income tax.

The term gross appears to have acquired a different meaning now.

In my opinion, Ford Money’s 3.32% AER can be referred to as 3.32% gross annual. This is how Section62 referred to it in their post.

That said, Ford Money’s email may be correct if the recipient had opted for annual interest.

If not, then it is clearly incorrect by not specifying AER or monthly/annual rate.

I haven’t received today’s email but my emails in the past have used the term gross and quoted the monthly rate, which is the option on my account.

I therefore would expect my email today to quote my new rate as 3.27% gross, not 3.32% gross.

Nevertheless, Ford Money could have avoided this confusion by stating the rates for AER annual and gross monthly in their email.

This kinda of error, be it accidental or deliberate, must be reported to the bank or Fintech immediately on noticing, so they can rectify it.

Many customers may be affected - not only you!

refluxer

Ford Money have been quoting incorrect gross/AER info for the monthly interest option on their accounts for years which is strange, because it's actually to their detriment.

For example - the monthly interest option for their Flexible Saver is quoted as '3.27% Gross p.a. / AER' when it should be '3.27% Gross p.a. / 3.32% AER'.

I have a Flexible Saver with monthly interest and their rate-change emails for this account, however, simply state the new gross rate of 3.27% (and don't mention AER), which is correct. MoneyFacts display the correct AER for the monthly option as 3.32%.

I had originally thought this was simply a leftover effect of the <1% interest rates of a few years ago where gross and AER were identical but the fact this is still happening a few years later suggests this hasn't been a simple 'copy and paste' error from re-using old T&Cs documents ! 

OceanSound

I wonder if such inaccuracies can affect someone who unwittingly (due to the error by ford money) saves over and above their tax allowance, so their savings become taxable. Whearas, if they had the correct info, they would've saved the money in an ISA (within their  ISA allowance)

TiVo_Lad

GB Bank are offering an Easy Access account at 3.4% via the Raisin Marketplace

@soulsaver

https://www.raisin.co.uk/savings-accounts/easy-access-accounts/

Note that GB Bank only got their banking license last year, but are FSCS protected.

OceanSound

TiVo_Lad said:

GB Bank are offering an Easy Access account at 3.4% via the Raisin Marketplace

@soulsaver

https://www.raisin.co.uk/savings-accounts/easy-access-accounts/

Note that GB Bank only got their banking license last year, but are FSCS protected.

it says this on the account details:

https://www.raisin.co.uk/term-deposit/gb-bank-easy-access/?#bank-product-details

To apply for this GB Bank savings account, customers must meet the criteria of the GB Bank Common Bond. The Common Bond means a customer must be affiliated to a particular group. For GB Bank, eligibility is defined by employment codes or by membership in a recognised institution such as the Co-Op or National Trust. Please see the Terms and Conditions for more information.

Can we pay £1.00 to buy a share in co-op thereby becoming a member of co-op, thereby becoming eligible for this account?

GalacticaActual

HSBC are increasing the interest rates on some of their savings accounts on Thursday 20th April 2023.

In particular the Online Bonus Saver is increasing by 0.25% to 3.5% on the first £10,000.

https://www.msn.com/en-gb/money/other/hsbc-reintroduces-200-switch-offer-and-increases-interest-rates-on-savings-accounts/ar-AA19XLpE?ocid=msedgntp&cvid=5ff01fdce4094feb8cd07182eb202822&ei=7

Wheres_My_Cashback

GalacticaActual said:

HSBC are increasing the interest rates on some of their savings accounts on Thursday 20th April 2023.

In particular the Online Bonus Saver is increasing by 0.25% to 3.5% on the first £10,000.

https://www.msn.com/en-gb/money/other/hsbc-reintroduces-200-switch-offer-and-increases-interest-rates-on-savings-accounts/ar-AA19XLpE?ocid=msedgntp&cvid=5ff01fdce4094feb8cd07182eb202822&ei=7

Remember the rate is only applicable if you do not make a withdrawal so only withdraw on the 1st and remove all funds/close otherwise you'll get a much lower rate.

flaneurs_lobster

OceanSound said:

TiVo_Lad said:

GB Bank are offering an Easy Access account at 3.4% via the Raisin Marketplace

@soulsaver

https://www.raisin.co.uk/savings-accounts/easy-access-accounts/

Note that GB Bank only got their banking license last year, but are FSCS protected.

it says this on the account details:

https://www.raisin.co.uk/term-deposit/gb-bank-easy-access/?#bank-product-details

To apply for this GB Bank savings account, customers must meet the criteria of the GB Bank Common Bond. The Common Bond means a customer must be affiliated to a particular group. For GB Bank, eligibility is defined by employment codes or by membership in a recognised institution such as the Co-Op or National Trust. Please see the Terms and Conditions for more information.

Can we pay £1.00 to buy a share in co-op thereby becoming a member of co-op, thereby becoming eligible for this account?

This type of "Common Bond" is typically seen in the membership requirements of Credit Unions, Friendly Societies etc.

Buying a share in The Co-op would do it, but probably make it the national one rather than one of the fiddly local ones.

Interestingly(?) GB Bank offer 1- and 2-year fixed savings products directly (i.e. not through Raisin) that do not have this Common Bond requirement. 

RG2015

OceanSound said:

RG2015 said:

RG2015 said:

Band7 said:

Ford seem a bit confused about Gross and AER. They were meant to say their new rate is 3.27% gross and 3.32% AER

Now I may be wrong but I thought the term gross was meant to distinguish from net, meaning gross payment or payment net of income tax.

The term gross appears to have acquired a different meaning now.

In my opinion, Ford Money’s 3.32% AER can be referred to as 3.32% gross annual. This is how Section62 referred to it in their post.

That said, Ford Money’s email may be correct if the recipient had opted for annual interest.

If not, then it is clearly incorrect by not specifying AER or monthly/annual rate.

I haven’t received today’s email but my emails in the past have used the term gross and quoted the monthly rate, which is the option on my account.

I therefore would expect my email today to quote my new rate as 3.27% gross, not 3.32% gross.

Nevertheless, Ford Money could have avoided this confusion by stating the rates for AER annual and gross monthly in their email.

This kinda of error, be it accidental or deliberate, must be reported to the bank or Fintech immediately on noticing, so they can rectify it.

Many customers may be affected - not only you!

But it is not an error.

I now have my email and it says my rate is increasing to 3.27% gross.

I have chosen monthly interest and it is now showing for me within my online banking account as 3.27% gross.

Hence everything is fine for me as it is for Section62 at 3.32% as they have chosen annual interest.