The Top Easy Access Savings Discussion Area

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.

mebu60

tg99 said:

Think someone posted about this recently but can’t easily locate - applied for the new Cynergy issue a few hours ago and just got email to say successfully opened and to login to view account but the account isn’t there. Never had this issue before and have got lots of accounts. Think I recall something along lines of the poster who mentioned this had to call Cynergy to fix it as was some kind of IT issue?

It was an blip due to being done on a Sunday, not connected to my extensive 20+ collection of closed accounts. I just redid fast-track later in the week. They eventually made the Sunday one appear so I'm just leaving it unfunded.

I opened the latest one last night with no issues. If yours still hasn't appeared perhaps just do again via fast-track. Good luck! 

Edit: saw subsequent post that it had appeared :-)  

NameWithheld

I prefer monthly over annual for taxable interest because at the moment I have a not to exceed target of £1000 taxable interest per tax year. This is partly because it is the maximum I can get without paying tax, and partly because having a target makes it easier to budget how much income to salary sacrifice to ensure that my overall taxable income remains in the 20% tax band. Having monthly interest on accounts that have rapidly changing rates and balances makes the target easier to track.

Any excess savings goes in an ISA at BR - 0.9%. That pays annually, but that doesn't matter

BestSeagull

NameWithheld said:

I prefer monthly over annual for taxable interest because at the moment I have a not to exceed target of £1000 taxable interest per tax year. This is partly because it is the maximum I can get without paying tax, and partly because having a target makes it easier to budget how much income to salary sacrifice to ensure that my overall taxable income remains in the 20% tax band. Having monthly interest on accounts that have rapidly changing rates and balances makes the target easier to track.

Any excess savings goes in an ISA at BR - 0.9%. That pays annually, but that doesn't matter

The first thing I do every year is fund my ISA. Why would you leave it until last, especially as tax is such an issue for you?

NameWithheld

BestSeagull said:

NameWithheld said:

I prefer monthly over annual for taxable interest because at the moment I have a not to exceed target of £1000 taxable interest per tax year. This is partly because it is the maximum I can get without paying tax, and partly because having a target makes it easier to budget how much income to salary sacrifice to ensure that my overall taxable income remains in the 20% tax band. Having monthly interest on accounts that have rapidly changing rates and balances makes the target easier to track.

Any excess savings goes in an ISA at BR - 0.9%. That pays annually, but that doesn't matter

The first thing I do every year is fund my ISA. Why would you leave it until last, especially as tax is such an issue for you?

I never said I did.

BestSeagull

NameWithheld said:

BestSeagull said:

NameWithheld said:

I prefer monthly over annual for taxable interest because at the moment I have a not to exceed target of £1000 taxable interest per tax year. This is partly because it is the maximum I can get without paying tax, and partly because having a target makes it easier to budget how much income to salary sacrifice to ensure that my overall taxable income remains in the 20% tax band. Having monthly interest on accounts that have rapidly changing rates and balances makes the target easier to track.

Any excess savings goes in an ISA at BR - 0.9%. That pays annually, but that doesn't matter

The first thing I do every year is fund my ISA. Why would you leave it until last, especially as tax is such an issue for you?

I never said I did.

Sorry, it read that way to me.

flobbalobbalob

KevinG said:

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.

I am the second named of our joint NatWest account and linked to Tandem OK. In my case my spouse does not have a Tandem account.

BestSeagull

Barkin said:

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. 

I just got a text from Shawbrook to say that mine has updated automatically. Last time I had to ask for the update. It's inconsistent!

Wheres_My_Cashback

KevinG said:

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.

But you an have as many linked accounts as you like with Tandem and they don't have to be open banking ones.

mebu60

BestSeagull said:

Barkin said:

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. 

I just got a text from Shawbrook to say that mine has updated automatically. Last time I had to ask for the update. It's inconsistent!

Depends if it's a new issue. When it's a new issue you have to request an upgrade to the new issue (and you don't get the compounded interest as with Cynergy, Sainsbury's, etc). When the new rate is applied to an existing issue it's automatically increased. 

But yes, Shawbrook and others are inconsistent in which approach of the two they decide to select.