The Top Easy Access Savings Discussion Area

dealyboy

@chris_the_bee said:

dealyboy said:

Sorry ... just thought of a downer re. new Santander EA saver ... tax on savings interest ... eek!

Hope you're OK @Swipe.

It's a privilege to pay taxes.

... what no emoji? 

1spiral

gt94sss2 said:

@soulsaver

My Community Finance has raised their interest rate from 4.61% to 4.95% for balances above £19,999 on their easy saver account

I loved their comment under the cons section of pros and cons of the easy access account.

Beddie

Nice new rate from Santander... until the next BoE rate rise. They will probably leave the rate as it is, so it'll be leapfrogged by others. 

ryaneberry

If the monthly rate is 5.08% then taking 1/12th of that gives 5.2% PA when compounded

The question is, is it 5.08% / 12 (ish) or is 5.08% the compounded figure?

5.2% / 12 =0.004233
1 * 1.004233^ 12 = 1.052

Rollinghome

S_uk said:

Rollinghome said:

KevinG said:

pearl123 said:

jpsman said:

Small gripe but the Santander EA Saver doesn't seem to allow monthly interest to be paid away - or am I missing something?

You can select the monthy interest option of 5.08%.

That wasn't the question.

It's normally only fixed term accounts where monthly interest can be paid away.  This is an easy access account, so you can withdraw your interest whenever you want to.

I notice the summary box says "5.08% AER/gross (variable)" but later says "Balance after 12 months £1,052.00".  Meaning that the AER for monthly with full compounding would be 5.20% as you'd expect, not 5.08%, the rate applied monthly.  You'd get a bit less than 5.20% AER if withdrawing or closing before 12 months.

Isn't that example for for when the interest pays yearly not monthly though?

To work out the estimated balance, we’ve assumed that:

-We pay interest yearly back into the account.

The example doesn't differentiate between annual and monthly interest.  As interest 5.08% on £1k compounded monthly also comes out as £52.00 then it seems to be just an error.

It's also a bit wacky that they've brought this out just after offering a then market leading rate of 4.90% under their Cahoot brand.  Going to be a lot of switching going on.

2010

Beddie said:

Nice new rate from Santander... until the next BoE rate rise. They will probably leave the rate as it is, so it'll be leapfrogged by others. 

This account closes four days before the rate meeting, could also be sooner, depending on demand.
Whatever provider is around 5% EA now will only be equalling Santander IF they pass on the full increase, assuming the BoE actually move rates up.
Santander seems to be anticipating a 25 bp increase on 21st Sept. and have got ahead of the pack.

For any existing customers, it`s a no brainer.

dealyboy

2010 said:

Beddie said:

Nice new rate from Santander... until the next BoE rate rise. They will probably leave the rate as it is, so it'll be leapfrogged by others. 

This account closes four days before the rate meeting, could also be sooner, depending on demand.
Whatever provider is around 5% EA now will only be equalling Santander IF they pass on the full increase, assuming the BoE actually move rates up.
Santander seems to be anticipating a 25 bp increase on 21st Sept. and have got ahead of the pack.

For any existing customers, it`s a no brainer.

... remember it's a variable rate so they could reduce it if inflation and eventually BoE rates subside, although this could be sooner than we think with an election round the corner. And Santander's track record is generally one of decisive moves when needed rather than tinkering, so current Santander's rates could hold for quite a while.

Sea_Shell

I wonder how they (Santander) decide they are "sold out" before the 17th?

Number of accounts?   Or monies held?

Obviously, they don't know what balances people are planning to hold...but then some could just open with a nominal amount to "reserve" it so to speak.

2010

dealyboy said:

2010 said:

Beddie said:

Nice new rate from Santander... until the next BoE rate rise. They will probably leave the rate as it is, so it'll be leapfrogged by others. 

This account closes four days before the rate meeting, could also be sooner, depending on demand.
Whatever provider is around 5% EA now will only be equalling Santander IF they pass on the full increase, assuming the BoE actually move rates up.
Santander seems to be anticipating a 25 bp increase on 21st Sept. and have got ahead of the pack.

For any existing customers, it`s a no brainer.

... remember it's a variable rate so they could reduce it if inflation and eventually BoE rates subside, although this could be sooner than we think with an election round the corner. And Santander's track record is generally one of decisive moves when needed rather than tinkering, so current Santander's rates could hold for quite a while.

It`s EA access, rates change, you move it to better.

refluxer

jaypers said:

Section62 said:

Sea_Shell said:

And empty the 5% Reg Savers.

Also the Barclays Rainy Day Saver for those who still have funds in it.

No point really. Rainy Day Saver is 5.12% so very similar unless you have a very significant sum saved. I do wonder whether Barclays will do something with this account soon as it’s been at this rate for nearly a year. Great back then but looking shabby now. 

Even though the Rainy Day Saver rate has stayed the same since the account launched, lets not forget that it paid more than twice the rate of the highest-paying easy access account at the time and it's been pretty-much the best home for easy access for up to £5k for the last 11 months and (AFAIK) still remains the second-highest paying easy access account currently available (albeit with that £5k limit), which is actually pretty impressive considering how much interest rates have increased since then and also the fact that it's from a high-street bank, which aren't usually competitive.