The Top Easy Access Savings Discussion Area

flobbalobbalob

Could I ask, as a newbie, for clarification of loss of interest when moving money from one account to another.

In the case of Santander they say "At the end of each day, 1/365th of your interest rate, which is called your daily periodic rate, is calculated based on your account balance."

Does this mean if you make a deposit during the evening then Santander are gifting you a full days interest and, presumably, when you make a same day withdrawal you loose a days interest. If the provider does not give same day withdrawals, will you loose interest for each days delay. Is that how it works for all providers! Thanks.

kjs31

SeriousHoax said:

Anyone putting more than 85k in santander😛.

Yes, me. I have a couple of accounts with 100k in them and will put 100k in Santander too. I’m quite relaxed about it but don’t want to risk more than 15k. 

10_66

DF Capital increased their interest rate today to 5% AER on Easy Access issue 2 (No Longer Available).

kjs31

When annual interest is paid on easy access savings is it always end of tax year with annual interest? I have house funds from sale of house on deposit at the mo so tax liability will be £££ this year with interest rates on savings being much better. It would be better if I could get the interest in the next tax year rather than this as I will have far less money on deposit next year once I’ve bought a new house. Or is a fixed term account the only option for that (can’t tie money up that way unfortunately as will be needed soon). 

And in other news I ended up with 2 Edge savings accounts and have shoved 4k in each. Signal went kapput when I was applying for the first account so I thought it hadn’t worked. Applied for another one and ended up with 2 🤔. 

ossie48

SeriousHoax said:

Anyone putting more than 85k in santander😛.

Yep we're putting in a £250,000 inheritance which will be protected for six months.

ColdIron

kjs31 said:

When annual interest is paid on easy access savings is it always end of tax year with annual interest? I have house funds from sale of house on deposit at the mo so tax liability will be £££ this year with interest rates on savings being much better. It would be better if I could get the interest in the next tax year rather than this as I will have far less money on deposit next year once I’ve bought a new house. Or is a fixed term account the only option for that (can’t tie money up that way unfortunately as will be needed soon).

It depends upon the saving provider. Some pay it on a fixed month (December, March etc) but anniversary of account opening is by far the most common
Check the T&Cs

chris_the_bee

BreakingGlass said:

I opened the Santander EA account yesterday and accidentally opted for monthly interest, when I wanted annual.  I messaged them to try to change but they said I had to close the 'monthly' and then re-open with 'annual'.  I used the chatbot to close the 'monthly' yesterday, but the account is still showing.  I have just opened an 'annual interest' version and currently have two accounts listed!

I haven't funded the account yet (other than a test £1), and I am slightly hesitant to do so after previous over-zealous anti-fraud measures when trying to withdraw from a Santander saver - wife and I wasted a whole day on the phone!

I did similar yesterday and account I wish to keep is showing that withdrawals cannot be made as account is pending. Phoned them this morning and result after 20 minutes of various holds was that it should be unlocked within 24 hours at same time as erroneous account is cancelled.
So if I were you, I wouldn't add funds that you might need to withdraw shortly until account is unlocked and you have tried a test deposit & withdrawal.

chris_the_bee

SeriousHoax said:

Anyone putting more than 85k in santander😛.

As a good rule you should not exceed the £85K. Even big banks can go & have gone bust.

KevinG

kjs31 said:

When annual interest is paid on easy access savings is it always end of tax year with annual interest?

No, it's on the anniversary of opening the account.

chris_the_bee

flobbalobbalob said:

Could I ask, as a newbie, for clarification of loss of interest when moving money from one account to another.

In the case of Santander they say "At the end of each day, 1/365th of your interest rate, which is called your daily periodic rate, is calculated based on your account balance."

Does this mean if you make a deposit during the evening then Santander are gifting you a full days interest and, presumably, when you make a same day withdrawal you loose a days interest. If the provider does not give same day withdrawals, will you loose interest for each days delay. Is that how it works for all providers! Thanks.

Yes to most of your question. But if the provider does not give same day withdrawals, then it depends on their T's&C's. Some deduct and pay the following day, and some deduct today and pay tomorrow.