The Top Easy Access Savings Discussion Area

Dan_J

HI all,

Weighing up whether to bother shifting from Zopa at last, but would only want to shift to an account from and to which I can transfer instantly and unlimited times. This then excludes Principality, Raisin and Oxbury (I don't like the 1pm cut off). I believe that this leaves Kroo, which could be worth the ~0.2% extra interest when compared to Zopa's new rate.

What I don't understand is this being a "current account" rather than "savings account." What does this mean in practical terms? I am incredibly tech savvy so have been able to Google it, but all the "definitions" of how the 2 types of account differ don't seem applicable when comparing Kroo and Zopa, which appear to have identical functionality.

So, are there any drawbacks to opening a Kroo account and transferring what with it being a current and not savings account?

Thanks and apologies if this is a dumb question.

jimexbox

Dan_J said:

HI all,

Weighing up whether to bother shifting from Zopa at last, but would only want to shift to an account from and to which I can transfer instantly and unlimited times. This then excludes Principality, Raisin and Oxbury (I don't like the 1pm cut off). I believe that this leaves Kroo, which could be worth the ~0.2% extra interest when compared to Zopa's new rate.

What I don't understand is this being a "current account" rather than "savings account." What does this mean in practical terms? I am incredibly tech savvy so have been able to Google it, but all the "definitions" of how the 2 types of account differ don't seem applicable when comparing Kroo and Zopa, which appear to have identical functionality.

I currently use Tandem for everyday use. Transfers at anytime take around 20 minutes. No pots, but not that fussed. Oxbury for my notice account. 

masonic

Dan_J said:
What I don't understand is this being a "current account" rather than "savings account." What does this mean in practical terms? I am incredibly tech savvy so have been able to Google it, but all the "definitions" of how the 2 types of account differ don't seem applicable when comparing Kroo and Zopa, which appear to have identical functionality.

So, are there any drawbacks to opening a Kroo account and transferring what with it being a current and not savings account?

A current account will generally allow you to send money to any UK account, whereas a savings account normally restricts where money can be sent (e.g, only one pre-registered nominated account in your name, some allow multiple pre-arranged nominated accounts, some are even more flexible). While being able to move money about freely is convenient, it also means more risk, so the security needs to be better for a current account. Some banks blur the lines between current and savings accounts.

In the case of Kroo specifically, it has been reported that in some cases they freeze incoming transactions (which is highly unusual) and require information about the sender before they release the funds, so if you are unlucky you could see incoming payments delayed. I've not experienced this with my boring activity of bouncing money back and forth between a couple of my own accounts.

simon_or

Dan_J said:

I believe that this leaves Kroo, which could be worth the ~0.2% extra interest when compared to Zopa's new rate.

What I don't understand is this being a "current account" rather than "savings account." What does this mean in practical terms? I am incredibly tech savvy so have been able to Google it, but all the "definitions" of how the 2 types of account differ don't seem applicable when comparing Kroo and Zopa, which appear to have identical functionality.

So, are there any drawbacks to opening a Kroo account and transferring what with it being a current and not savings account?

Thanks and apologies if this is a dumb question.

Imho if you're comparing two accounts with the same rate and one is a current account like Kroo and the other is a savings account (generally, not just Zopa) it's mostly positives as with Kroo being a current account you can use a lot more automation, using future dated payments, standing orders, etc. to say fund your main current account at certain times of the month. Plus transfers are instant which isn't the case with all savings accounts (Zopa excluded ofc).

The main disadvantage (compared to non-Zopa savings accounts) imho is that joint accounts aren't possible so if you are saving for two it'll involve a bit of work to balance out the interest earned Vs individual personal savings allowances.

I had set up an intricate system back when Kroo was top dog which all went to waste when they fell off the ladder. Now that they're back close to the top, I might revive my account and start using it.

Dan_J

simon_or said:

Dan_J said:

I believe that this leaves Kroo, which could be worth the ~0.2% extra interest when compared to Zopa's new rate.

What I don't understand is this being a "current account" rather than "savings account." What does this mean in practical terms? I am incredibly tech savvy so have been able to Google it, but all the "definitions" of how the 2 types of account differ don't seem applicable when comparing Kroo and Zopa, which appear to have identical functionality.

So, are there any drawbacks to opening a Kroo account and transferring what with it being a current and not savings account?

Thanks and apologies if this is a dumb question.

Imho if you're comparing two accounts with the same rate and one is a current account like Kroo and the other is a savings account (generally, not just Zopa) it's mostly positives as with Kroo being a current account you can use a lot more automation, using future dated payments, standing orders, etc. to say fund your main current account at certain times of the month. Plus transfers are instant which isn't the case with all savings accounts (Zopa excluded ofc).

The main disadvantage (compared to non-Zopa savings accounts) imho is that joint accounts aren't possible so if you are saving for two it'll involve a bit of work to balance out the interest earned Vs individual personal savings allowances.

I had set up an intricate system back when Kroo was top dog which all went to waste when they fell off the ladder. Now that they're back close to the top, I might revive my account and start using it.

Thanks to masonic and jimexbox who replied above.

Thanks simon - this I think nails the differentiation and will help me make a decision. I do really value instant transfers and being set up regular payment, which are both features that Zopa has. I might have a look at Tandem first but think Kroo looks a good bet. Thanks again.

Catplan

topcashback still available if you open a Kroo account.

allegro120

Dan_J said:

HI all,

Weighing up whether to bother shifting from Zopa at last, but would only want to shift to an account from and to which I can transfer instantly and unlimited times. This then excludes Principality, Raisin and Oxbury (I don't like the 1pm cut off). I believe that this leaves Kroo, which could be worth the ~0.2% extra interest when compared to Zopa's new rate.

What I don't understand is this being a "current account" rather than "savings account." What does this mean in practical terms? I am incredibly tech savvy so have been able to Google it, but all the "definitions" of how the 2 types of account differ don't seem applicable when comparing Kroo and Zopa, which appear to have identical functionality.

So, are there any drawbacks to opening a Kroo account and transferring what with it being a current and not savings account?

Thanks and apologies if this is a dumb question.

Kroo is a straight forward current account that pays interest on your balance.  You get a debit card etc. The only drawback is that you can't withdraw more than £10k per day.  In practical terms the difference between Zopa and Kroo is the interest rate. My Zopa is empty since April because they've stopped offering competitive rates.

TisMeBill

allegro120 said:

Dan_J said:

HI all,

Weighing up whether to bother shifting from Zopa at last, but would only want to shift to an account from and to which I can transfer instantly and unlimited times. This then excludes Principality, Raisin and Oxbury (I don't like the 1pm cut off). I believe that this leaves Kroo, which could be worth the ~0.2% extra interest when compared to Zopa's new rate.

What I don't understand is this being a "current account" rather than "savings account." What does this mean in practical terms? I am incredibly tech savvy so have been able to Google it, but all the "definitions" of how the 2 types of account differ don't seem applicable when comparing Kroo and Zopa, which appear to have identical functionality.

So, are there any drawbacks to opening a Kroo account and transferring what with it being a current and not savings account?

Thanks and apologies if this is a dumb question.

Kroo is a straight forward current account that pays interest on your balance.  You get a debit card etc. The only drawback is that you can't withdraw more than £10k per day.  In practical terms the difference between Zopa and Kroo is the interest rate. My Zopa is empty since April because they've stopped offering competitive rates.

The £10k daily limit on Kroo is only paying friends in the app, the daily limit for faster payments is £250k

patpalloon

jak22 said:

Not only is Shawbrook next working day but the online balance seems to be debited straight away. If this is implies losing a day's interest then it would take 3 weeks for a 0.2% increase to break even - worth bearing in mind if Shawbrook respond to the last BoE rise soon after moving funds out.

I must admit I'm not a huge fan of Shawbrook - no app, log in is convoluted, transfers in/out take time plus min £500 withdrawal. I'll move to Atom which ticks all those boxes.

patpalloon

Which are the highest paying EA accounts that also offer monthly interest (like Tandem for example). I'm not interested in ones that only pay annually.