The Top Easy Access Savings Discussion Area

spider42

13zero8 said:

I'm getting a bit confused about whether you really get 5.2% on your money in the Chase Boosted account....

The 1% (AER) boosted rate is only for seven months until November, but don't you need to have your money (and interest compounded) in an account for a full year to truly achieve the AER rate?

Once the boost ends in Nov, the rate drops to 4.2% AER / 4.02% Gross (if their standard variable rate hasn't decreased) for the remaining five months of the year.

I get that you never really know if you're going to get the AER on an account because it's variable rate might go down, but it seems that with this boosted rate being for only seven months you've got no chance of ever seeing 5.2%.

Or am I seeing this incorrectly? 

No, I think in essence you are seeing it correctly. MSE state here https://www.moneysavingexpert.com/banking/interest-rates/ that AER should take of short term bonuses. "The second confusion is the impact of bonus interest rates. If a bonus is being paid for six months, then the AER (which stands for annual equivalent rate remember), would be less than the gross rate for the first six months as it would need to incorporate the period pre- and post-bonus."

So Chase are wrong to state that the AER of the boosted account as 5.1%, because it isn't. The AER needs to reflect what you would earn over a full year, so the AER should be calculated as a blend of a few months at the boosted rate, followed by a few months at the normal rate, which make it more like 4.7%.

But as MSE go on to say "However, if you're planning to shift accounts when the bonus rate ends, then the AER is irrelevant, as you only want to know the interest rate during the bonus period."

So if you leave the money in until 4 November, then you are effectively earning 5.1% for 7 months. Just remember to move it when the rate drops.

RedImp_2

thunderroad88 said:

csw5780 said:

thunderroad88 said:

Anyone know when and where in the app Chip might issue tax certificates?

Profile>savings>account statements>account>annual

Thanks, nothing there yet and I expect they won’t be quick about it either

Blimey tax year hasn’t been closed for a week yet !

Bridlington1

@soulsaver
Apologies if it's already been mentioned but  Harpenden BS EA 4.95% £100 min is now NLA, replaced by iss2 at 4.81%

EDIT:
If I'm not mistaken this leaves Oxbury Personal Easy Access Account (Issue 1) at 4.94% (£1k min) being readmitted to the top 10.

soulsaver

Bridlington1 said:

@soulsaver
Apologies if it's already been mentioned but  Harpenden BS EA 4.95% £100 min is now NLA, replaced by iss2 at 4.81%

EDIT:
If I'm not mistaken this leaves Oxbury Personal Easy Access Account (Issue 1) at 4.94% (£1k min) being readmitted to the top 10.

No, you're on the ball - it was still available when I ran the link checks this afternoon...

brewerdave

Don't know if its been mentioned on here - but my Santander Easy Access Saver rate is dropping from 4.05% to 1.2% from 12th June - talk of falling off a cliff !! Fortunately not that much left in it ,but time to move on !

dealyboy

... mine too, 2p in mine, I'm keeping it just in case ... let's see if they reward loyalty, haha.

Bridlington1

dealyboy said:

... mine too, 2p in mine, I'm keeping it just in case ... let's see if they reward loyalty, haha.

I'm keeping mine as it's not doing any harm sat there with a nil balance so I can't be bothered to close it. Plus Santander's cheque deposit limits for the app are per account per day rather than just per day so having it allows me to deposit an extra £1k's worth of cheques in a single day if I so wish.

peter021072

brewerdave said:

Don't know if its been mentioned on here - but my Santander Easy Access Saver rate is dropping from 4.05% to 1.2% from 12th June - talk of falling off a cliff !! Fortunately not that much left in it ,but time to move on !

I previously moved the money from that account into a more recent account also called 'easy access saver' at 5.2%. Hopefully, this won't be affected although I doubt if they will keep it at that level for long.

RG2015

peter021072 said:

brewerdave said:

Don't know if its been mentioned on here - but my Santander Easy Access Saver rate is dropping from 4.05% to 1.2% from 12th June - talk of falling off a cliff !! Fortunately not that much left in it ,but time to move on !

I previously moved the money from that account into a more recent account also called 'easy access saver' at 5.2%. Hopefully, this won't be affected although I doubt if they will keep it at that level for long.

Do you mean the Santander limited edition easy access saver at 5.20% that is dropping to 4.20% on 20 May 2024?


https://www.moneysavingexpert.com/news/2024/03/santander-easy-access-rate-cut/

pokemaster

brewerdave said:

Don't know if its been mentioned on here - but my Santander Easy Access Saver rate is dropping from 4.05% to 1.2% from 12th June - talk of falling off a cliff !! Fortunately not that much left in it ,but time to move on !

Do you have a source for this can’t find it via Google and haven’t received an email myself