The Top Easy Access Savings Discussion Area

SonOfPearl

Tesco has issued a new Internet Saver account at 1.31% (0.25% plus 1.06% bonus for 1 year).

sturgeon

Impossible to say really but what’s the likelihood of Atom nudging their rates up following the latest BOE increase? I don’t want to apply for a Chase account for the sake of .15% difference plus atom could easily get to this level. It says in my account they increased to 1.35% on the 17th June but I’m not sure that’s accurate?

wiseonesomeofthetime

@sturgeon It is 👍

refluxer

sturgeon said:

Impossible to say really but what’s the likelihood of Atom nudging their rates up following the latest BOE increase? I don’t want to apply for a Chase account for the sake of .15% difference plus atom could easily get to this level. It says in my account they increased to 1.35% on the 17th June but I’m not sure that’s accurate?

Yes - the rate increased within the last week or so, so that date sounds right. As it's so recent, pretty competitive and they feature in the MSE top table, I can't see them increasing again anytime soon.

uptdale

Patr100 said:

Mr._H_2 said:

Patr100 said:

phillw said:

Patr100 said:
I need evidence that interest over the 85k is also protected.

It won't be, if they have already paid the interest then it's just included in your balance. If they haven't paid the interest and go bust, then you won't get it.

Either withdraw the money to get below 85k every time interest is added or accept it as a risk, that you might lose it if they go under.

That's why I asked for evidence. I don't know where some people are getting this notion that the interest above 85k is covered.

It's not entirely clear. According to this gov.uk site: https://www.gov.uk/hmrc-internal-manuals/savings-and-investment-manual/saim2085 :

"If … the bank deposit paid interest then it is common for the FSCS to include in the compensation payment interest on the financial product up until the date that the bank was declared to be in default or if appropriate, up to the date of maturity of a fixed term deposit."

However, I think that in any case, a single payout would never be more than £85k, with the exception of a valid "temporary large balance". So, to be covered for interest you'd need less than £85k in the account, such that the interest due would bring the total up to £85k.

Yes I saw that before I last replied and almost posted the link. As you also found
it's still not clear if interest that pushes the amount over and above the 85k would be covered
though I also suspect it wouldn't. Certainly strictly speaking, it wouldn't, and I dont 
want to be in a position to test it.

Actually, I think it's pretty clear that £85k is normally the limit of compensation including compensation for lost interest.  All the HMRC Manual is saying is that in law the compensation for lost interest is not "interest", but it is taxed as if it was interest.  If lost interest pushes the compensation over £85k, then HMRC treats the payment as compensation for lost capital first, so if you lost £84k capital and £2k interest, and therefore only received £85k compensation, you are only taxed on £1k and not on £2k.

andyhicks88

I don't think I plan to move from my current two savings providers, one of them being Atom, anytime soon unless we see significantly higher rates. It's true that even now Atom have dropped down a bit in the table again but I generally feel confident they will always catch up after a while and I don't really care to keep changing for the sake of a .10% or something extra for a few weeks/months. I'm not about the rate chasing unless it's really worth it.

All that said, Zopa do seem more reliable in terms of constantly updating the rate to remain competitive so I guess I would consider just swapping over.

soulsaver

andyhicks88 said:

I don't think I plan to move from my current two savings providers, one of them being Atom, anytime soon unless we see significantly higher rates. It's true that even now Atom have dropped down a bit in the table again but I generally feel confident they will always catch up after a while and I don't really care to keep changing for the sake of a .10% or something extra for a few weeks/months. I'm not about the rate chasing unless it's really worth it.

All that said, Zopa do seem more reliable in terms of constantly updating the rate to remain competitive so I guess I would consider just swapping over.

Zopa's 31 day notice is 1.6%... not long to wait if you issue notice immediately... if nowt better comes along you can cancel the notice on the 30th day or let it run and re-boost it and issue another notice; rinse and repeat as necessary.

And they add their new increased rates to existing notice accounts...  

It is 'tops' for me, personally.

eta 'their'..

Malchester

soulsaver said:

andyhicks88 said:

I don't think I plan to move from my current two savings providers, one of them being Atom, anytime soon unless we see significantly higher rates. It's true that even now Atom have dropped down a bit in the table again but I generally feel confident they will always catch up after a while and I don't really care to keep changing for the sake of a .10% or something extra for a few weeks/months. I'm not about the rate chasing unless it's really worth it.

All that said, Zopa do seem more reliable in terms of constantly updating the rate to remain competitive so I guess I would consider just swapping over.

Zopa's 31 day notice is 1.6%... not long to wait if you issue notice immediately... if nowt better comes along you can cancel the notice on the 30th day or let it run and re-boost it it and issue another notice, rinse and repeat as necessary.

And they add their new increased rates to existing notice accounts...  

It is 'tops' for me, personally.

eta 'their'..

Yes. I agree. I have only recently opened a Zopa acct and have found them excellent. The boosted pots are a great idea. Customer service is great. Rates are good if not then best 

Expotter

Can anyone tell me whether Zopa limit of £50K savings applies to each individual pot or to the total maximum savings in the account? 

zxspeccy

Expotter said:

Can anyone tell me whether Zopa limit of £50K savings applies to each individual pot or to the total maximum savings in the account? 

I believe it is now £85,000 across all pots in their smart saver, although the website still shows £50,000. What I have not found out is what happens if you hold the maximum of £85,000 and interest is applied, which will take you over their limit.

You can put more in their fixed term savers, up to £250,000 in one account and £500,000 across all fixed term savers... although I can't see why anyone would put in more than £85,000 in total.