The Top Easy Access Savings Discussion Area

cwep2

masonic said:

cwep2 said:

jaceyboy said:

Chip need to respond

Chip hold deposits at Clearbank which in turn deposits at the Bank of England at the Bank rate.

Has that been confirmed, or is it assumed?

Chip has explicitly said (many times) that they are not a bank, but the deposits are at Clear Bank, in fact I think if you do a direct deposit the payee check / sort code tells you it's Clear Bank. 

Clear Bank has also explicitly said they don't lend to anyone, and if you look at their website:
https://clear.bank/use-cases/banks
there is the quote:
"And because the Bank of England is the safest place for your customers’ money, that’s where we’ll keep it."

The Bank of England pays the bank rate on deposits, but only clearing banks can make deposits there, you or I can't just open an account there.

So putting that all together, deposits at Chip's savings account are deposited at Clear Bank, Clear Bank says they deposit these at the Bank of England, the Bank of England pays the bank rate on deposits (currently 5%, expected to change tomorrow). 

masonic

cwep2 said:

masonic said:

cwep2 said:

jaceyboy said:

Chip need to respond

Chip hold deposits at Clearbank which in turn deposits at the Bank of England at the Bank rate.

Has that been confirmed, or is it assumed?

Chip has explicitly said (many times) that they are not a bank, but the deposits are at Clear Bank, in fact I think if you do a direct deposit the payee check / sort code tells you it's Clear Bank. 

Clear Bank has also explicitly said they don't lend to anyone, and if you look at their website:
https://clear.bank/use-cases/banks
there is the quote:
"And because the Bank of England is the safest place for your customers’ money, that’s where we’ll keep it."

The Bank of England pays the bank rate on deposits, but only clearing banks can make deposits there, you or I can't just open an account there.

So putting that all together, deposits at Chip's savings account are deposited at Clear Bank, Clear Bank says they deposit these at the Bank of England, the Bank of England pays the bank rate on deposits (currently 5%, expected to change tomorrow). 

Thanks, given that, Chip is going to be in for a very tough time after rates peak and perhaps start falling, because they'll be unable to compete with traditional savings providers, who write loans at above BoE base rate. When the base rate is stable or declining, we'd normally expect to see the top savings rates above the base rate. I suspect being app only and niche, they have quite a mobile customer base (no pun intended), so there could be quite an exodus. At least savers' money will not be locked up, so outflows won't be problematic, however rapid.

boingy

masonic said:

Thanks, given that, Chip is going to be in for a very tough time after rates peak and perhaps start falling, 

I agree, although it's not just Chip. It's a whole bunch of them that are currently making hay while the sun shines. I'm aiming to ride that train then jump into some fixed rates in a few months. It's hard to time but I'll spread it over 3 or 4 months. I've currently got a surplus of cash thanks to a pension lump sum so the next few years is a game of maximising gains whilst gradually funnelling it into various ISAs at different risk levels and fixed-ness.

S_uk

Silverweed said:

Just a quick question please - does anyone that has the Newcastle Easy Access Base Tracker Account know if there is a cut off time for withdrawals to nominated account so that they are actioned the same day?  

Thanks in advance for any help. 

4pm for it to clear same working day.

patpalloon

Barkin said:

patpalloon said:

Investec EA now 4.38%o

That's monthly. 

AER = 4.47%

I have monthly interest

grumbler

patpalloon said:

Barkin said:

patpalloon said:

Investec EA now 4.38%o

That's monthly. 

AER = 4.47%

I have monthly interest

If you don't withdraw it, the annual would be 4.47%

bumblebee200

I appreciate Zopa doesn't have the best rates, but really like the separate pots with different rates depending on notice periods - does any one else offer this?

Barkin

I'm struggling go understand why that's a plus point right now. 

There are loads of EA accounts with a better rate than their 95 day pot.

redmalc

I deposited the full 85k max into Shawbrook easy access account a few months ago and what I like is they automatically give you the increased rate every time they change without having to close your account and open a new one 

Eirambler

poppystar said:

Saga Easy Access web page ‘being updated’ …another last minute before BoE meets increase in rate for Marcus/Saga I wonder?

Marcus up to an extremely underwhelming 4.3%AER overnight.

Their cash ISA is also up to 4.3% which is more competitive in terms of that market but you can't transfer in so that is not a whole lot of use either.