The Top Easy Access Savings Discussion Area

Wheres_My_Cashback

BestSeagull said:

pecunianonolet said:

SeriousHoax said:

TiVo_Lad said:

Cynergy Easy Access Issue 65 @ 4.8% now available

https://www.cynergybank.co.uk/personal/online-easy-access-account/online-easy-access-account/

@soulsaver

All done & dusted with fast-track.😀

I am getting fed up with all their issue related nonsense and reopening. It's down to minimum balance anyway but thinking of closing mine and OH account. Can't be that difficult to just increase the existing account instead of making me to login each and every time. No app either so for me another disadvantage. 

I don't disagree that it could be easier but having just quickly opened the new account last night and closed the old one this morning, I have to say, that's still preferable to having to spend the best part of a week moving it all to a different bank.

At least they are keeping up... looking at you Al Rayan.

Al Rayan seem to have completely lost interest in the market in the past 2/3 months and dropped off the cliff, however they'd have to improve so dramatically now that I doubt it's ever going to happen. It would take a minimum 1.20% hike for me to go back due being non 24/7 and only a Mon - Fri bank.

ranciduk

Another tiny increase by Shawbrook today...

Nick_C

ranciduk said:

Another tiny increase by Shawbrook today...

From what to what?  Does this make them a best currently available account?

Bridlington1

Nick_C said:

ranciduk said:

Another tiny increase by Shawbrook today...

From what to what?  Does this make them a best currently available account?

Shawbrook EA Issue 36 has risen from 4.63% to 4.68%.

Dale_UK

Nick_C said:

ranciduk said:

Another tiny increase by Shawbrook today...

From what to what?  Does this make them a best currently available account?

Does this increase apply to all their existing issued accounts? Or you have to open and shift internally to another?

Rollinghome

st2011 said:

Rollinghome said:

Justsayit7 said:

Cynergy not doing monthly interest are missing a trick. 4.80%

But then I never understood why anyone would want monthly interest from an easy access account. For a one or more years fixed term I do understand.

People have different circumstances. Some people might want monthly interest paid because they are supplementing their income on their savings (in easy access savings as they might also want the flexibility). Some might also not want it all paid in the tax year. What works for one person might not work for someone else.

With an annual interest easy access account they can withdraw their interest whenever they want and still get the higher applied rate.  Which is why I mentioned that it might make more sense for a fixed term account that doesn't allow withdrawals.

In rare circumstances, it can be useful to pay as much tax as possible in the current year, rather than a year later.  I did that last year to minimise tax when rates were rising and some tax rules were changing. I thought mentioning it would only complicate matters for someone who already found compound interest tricky. Under normal circumstances, especially with inflation high, it is usually advantageous to push payable tax as far into the future as possible. "A debt delayed is a debt unpaid" as accountants say.

I get the impression that one or two here want monthly interest not because "it works for them" but because they genuinely don't understand how monthly interest works. Either that, or they're trolling.
Accounts that pay monthly interest only are using a clever way for them to pay a smidgen less than the advertised AER figure to most people.

Barkin

Dale_UK said:

Nick_C said:

ranciduk said:

Another tiny increase by Shawbrook today...

From what to what?  Does this make them a best currently available account?

Does this increase apply to all their existing issued accounts? Or you have to open and shift internally to another?

You've never had to do that. In fact, you're only allowed a single EA account, so you can't. 

The way to do is to log in and check the rate on whatever issue EA account you have. If it isn't the latest rate, send them a secure message to get your issue number changed. 

BestSeagull

Wheres_My_Cashback said:

Al Rayan seem to have completely lost interest in the market in the past 2/3 months and dropped off the cliff, however they'd have to improve so dramatically now that I doubt it's ever going to happen. It would take a minimum 1.20% hike for me to go back due being non 24/7 and only a Mon - Fri bank.

You're right, they've just let the gap become too large. I did stay with them longer than I should have but I don't think I need to worry about having to move it all back there again any time soon!

KevinG

Opened a Tandem account for my wife yesterday to max out the interest. It didn't quite go according to plan as the app wouldn't link her account to our joint bank account (the one I used successfully) as it wasn't in her name (which it is, she just isn't the first named). Bit of a pain so we linked it to her Halifax personal account instead and had to shift money to that first. But like someone else earlier, it wouldn't allow a transfer of a large amount using open banking, we managed £50 but not £10,000. Halifax's daily transfer limit is £25,000 and the error message it gave was extremely unhelpful. Anyway, in the end we just moved the money successfully using faster payment but it's still a nuisance only being able to do £25K per day. It is also annoying that some banks, including Tandem, only accept faster payments from the linked account as that would have been a way round the open banking problem.

Rollinghome

grumbler said:

Rollinghome said:

flobbalobbalob said:

Rollinghome said:

Justsayit7 said:

Cynergy not doing monthly interest are missing a trick. 4.80%

Could be, but with banks like Cynergy offering new accounts after 11 days, any serious rate hoppers opting for monthly interest would be losing a smidgeon if they kept switching accounts.  

When an annual account is paying 4.80%, a monthly version would only pay 4.70% after a month.  The monthly rate will only match the annual rate if closed on an anniversary.

But then I never understood why anyone would want monthly interest from an easy access account. For a one or more years fixed term I do understand.

4.8% AER pays exactly the same per day as 4.7% monthly . Both accrue the same interest daily and nothing to do with an aniversary.

You clearly don't understand what AER means do you?  I'll give you a clue, it means annual equivalent rate, not daily equivalent rate.

An account paying 4.7% interest monthly will pay a daily applied rate of 4.7%. Compounded each month that will give you the equivalent of 4.8% (AER) after 12 months, and only after 12 months.  If you close the account at one month there will be no compounding so you will only get 4.7%.  You will only get 4.8% AER if held for a full year or following anniversaries.

 '4.8% annual' will pay a daily applied rate of 4.8%  No matter when the account is closed, you will still get 4.8% AER.
If that isn't clear, you need to try googling.

I'm not convinced. Can you google and post a reliable proof, preferably with an example of calculation?

And even if what you say is true, I don't see any significant difference for 4.7% and 4.8%.

1.048^(1/12) = 1.00391

4.7/12 = 0.392

Nope sorry. I've wasted enough time on this already.  It's your money and if you still don't get it, you don't get it. DYOR.

Andy's point above is completely right too.  If you open the Cynergy account with 4.8% AER annual interest, you'd get more than that if you closed the account and so compounded early. Always assuming the new account paid the same rate or better.

We aren't talking big numbers here, unless a very large sum is held in the account.  The applied rate for monthly is just 0.10% lower, but interest received will be a little bit lower if held for less than 12 months or another anniversary of the account.  Annual Equivalent Rate means you get that rate if held for a year.