The Top Easy Access Savings Discussion Area

Wheres_My_Cashback

sturgeon said:

Sorry to ask but it’s an enormous thread, what’s the deal with Tandem if your phone is lost or stolen? And can only a bank account with your name be linked to then withdraw? Moving everything over from Chip so wanted to know the score. 

You buy a new phone or use a tablet. 
Yes

Zaul22

The losing your phone issue applies equally to Chip anyway, except Tandem have a number you can call to freeze your account until you get a new sim card.

masonic

Both Chip and Tandem verify the account name via Open Banking before adding as a linked account. 

It is worthwhile having a continuity plan for mobile phone service should you lose access to your current phone. It's possible to port your number onto a new SIM and resume service very quickly, subject to the processes of your network provider. A great many services depend on the customer being able to receive SMS messages at their registered phone number. It is not a requirement that you run the app and receive SMS to the same device. In some respects, it is better to use different devices, albeit less convenient.

sturgeon

So with your new phone, you re-download the app and then what? I don’t even login, it just uses Face ID. Would you then re-register with the same number and they’ll send text verification?

masonic

sturgeon said:

So with your new phone, you re-download the app and then what? I don’t even login, it just uses Face ID. Would you then re-register with the same number and they’ll send text verification?

You enter your phone number (which serves as your user id) and it sends to a SMS with a code to confirm it's you.

grumbler

masonic said:

sturgeon said:

So with your new phone, you re-download the app and then what? I don’t even login, it just uses Face ID. Would you then re-register with the same number and they’ll send text verification?

You enter your phone number (which serves as your user id) and it sends to a SMS with a code to confirm it's you.

I'm not sure what exactly this confirms except that you have this SIM in your possession. It was suggested earlier in this thread to have the SIM pin-locked to improve this very weak security.

That said, it's not that bad because the linked current account has to be on your name.

martinm1

Bazzalona13295 said:

Eirambler said:

Bazzalona13295 said:

Here's a question, what exactly is the point of a bonus being incorporated into a percentage rate?
Are the banks simply hoping some don't click on to the bonus and get a lower rate?

That and probably a bit of marketing spin as well. You'd be surprised how many people see things like a "bonus rate" and think that some account or product must be better because it includes a "bonus".

Must be the case, what made me wonder more than anything is the Tandem 5%.
I've never seen an offer where you need to click to get the bonus, imagine how many might not do that.

And after a year you lose the bonus, so rate is lower.

martinm1

europa said:

Rollinghome said:

europa said:

Rollinghome said:

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.

This is incredibly useful info. I am relatively savvy with these things, and even i thought monthly interest (with the same AER) was equivalent regardless of when the money is withdrawn. So many thanks for alerting me and others to this important anomaly !

That's good.  It's not a lot of money to worry about unless the balance is large but just as well in our pocket as in the bank's.  And it might be why so many banks are offering monthly only accounts now.

Indeed. If i were a bank, that's exactly what i would do. AER clearly isn't fit for purpose. 

It is fit for purpose as it allows comparing different products to normalise them over one year.  Compound interest seems to confuse a lot of people, so I'm sure that's why AER was introduced.

PixelPound

martinm1 said:

europa said:

Rollinghome said:

europa said:

Rollinghome said:

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.

This is incredibly useful info. I am relatively savvy with these things, and even i thought monthly interest (with the same AER) was equivalent regardless of when the money is withdrawn. So many thanks for alerting me and others to this important anomaly !

That's good.  It's not a lot of money to worry about unless the balance is large but just as well in our pocket as in the bank's.  And it might be why so many banks are offering monthly only accounts now.

Indeed. If i were a bank, that's exactly what i would do. AER clearly isn't fit for purpose. 

It is fit for purpose as it allows comparing different products to normalise them over one year.  Compound interest seems to confuse a lot of people, so I'm sure that's why AER was introduced.

Especially those on here who seem to think AER isn't "fit for purpose"

Whether an account pays interest monthly or annually, if the AER is the same and any deposits/withdrawals the same, the interest you get after 12 months will be the same. If you close it part way through the year (assuming no penalties) then you'd get the same interest.

AER was introduced to allow people to compare products easily, often prior to it's introduction you'd get banks etc quoting whatever interest rate version that made it look most favourable (e.g. loans quoted on gross, credit cards on monthly equivalents etc)

masonic

grumbler said:

masonic said:

sturgeon said:

So with your new phone, you re-download the app and then what? I don’t even login, it just uses Face ID. Would you then re-register with the same number and they’ll send text verification?

You enter your phone number (which serves as your user id) and it sends to a SMS with a code to confirm it's you.

I'm not sure what exactly this confirms except that you have this SIM in your possession. It was suggested earlier in this thread to have the SIM pin-locked to improve this very weak security.

That said, it's not that bad because the linked current account has to be on your name.

Yes, minimum security for a trusted phone number is SIM PIN lock and strong lock-screen password on the device the SIM is put into. It also helps to confirm that your network provider has appropriate measures in place to prevent someone else performing a SIM swap. As mentioned above, SMS-based authentication is becoming commonplace, despite better solutions existing.