The Top Easy Access Savings Discussion Area

whatleytom87

RG2015 said:

whatleytom87 said:

At the end of the day, all of these mechanisms are designed in some way to reduce the overall payable rate for the bank whilst still appealing to a certain segment of customers. 

As you rightly point out, none of them are perfect so to speak, and what is an issue for one person is definitely not for another. 

Will be interesting to watch Chase pan out. Obviously Marcus did similar, but with a much less attractive offer, when the market at the time was much closer. Chase have gone all out to acquire a huge amount of current account volume at massive cost, not just the savings rate but the refer a friend incentive, cashback, near perfect exchange rate and round up account. It won't last, and will be interesting to watch them wind it back in. 

They took over 500k customers in the 60 days to the end of May which was just over £8bn, with the ringfence limit of £25bn you'd imagine at that run rate they're going to maintain the offers until around September at which point it's probably going to be significantly less attractive. 

Regarding Chase, I cannot see how they will generate enough income to cover the cost of these incentives. And this is before covering their running costs.

There's an awful lot of potential in having 1.5m current account customers. I would guess the next stage is attempting to convert those current accounts into prime relationships, at which point the income generating products can be rolled out. My understanding is that the UK market is a proving ground for rolling out the same tech/proposition to a whole batch of other worldwide territories. 

Olinda99

whatleytom87 said:

RG2015 said:

whatleytom87 said:

At the end of the day, all of these mechanisms are designed in some way to reduce the overall payable rate for the bank whilst still appealing to a certain segment of customers. 

As you rightly point out, none of them are perfect so to speak, and what is an issue for one person is definitely not for another. 

Will be interesting to watch Chase pan out. Obviously Marcus did similar, but with a much less attractive offer, when the market at the time was much closer. Chase have gone all out to acquire a huge amount of current account volume at massive cost, not just the savings rate but the refer a friend incentive, cashback, near perfect exchange rate and round up account. It won't last, and will be interesting to watch them wind it back in. 

They took over 500k customers in the 60 days to the end of May which was just over £8bn, with the ringfence limit of £25bn you'd imagine at that run rate they're going to maintain the offers until around September at which point it's probably going to be significantly less attractive. 

Regarding Chase, I cannot see how they will generate enough income to cover the cost of these incentives. And this is before covering their running costs.

There's an awful lot of potential in having 1.5m current account customers. I would guess the next stage is attempting to convert those current accounts into prime relationships, at which point the income generating products can be rolled out. My understanding is that the UK market is a proving ground for rolling out the same tech/proposition to a whole batch of other worldwide territories. 

also, it depends what they did with all the money flowing into their savings accounts.

If they transferred it to the States, then the way the GBP has fallen against the USD means they will be well in profit, even after paying us 1.5% interest.

10_66

n3ophyte, you may want to blank out your name more thoroughly on your screen snip, it's still legible.

MDMD

Olinda99 said:

whatleytom87 said:

RG2015 said:

whatleytom87 said:

At the end of the day, all of these mechanisms are designed in some way to reduce the overall payable rate for the bank whilst still appealing to a certain segment of customers. 

As you rightly point out, none of them are perfect so to speak, and what is an issue for one person is definitely not for another. 

Will be interesting to watch Chase pan out. Obviously Marcus did similar, but with a much less attractive offer, when the market at the time was much closer. Chase have gone all out to acquire a huge amount of current account volume at massive cost, not just the savings rate but the refer a friend incentive, cashback, near perfect exchange rate and round up account. It won't last, and will be interesting to watch them wind it back in. 

They took over 500k customers in the 60 days to the end of May which was just over £8bn, with the ringfence limit of £25bn you'd imagine at that run rate they're going to maintain the offers until around September at which point it's probably going to be significantly less attractive. 

Regarding Chase, I cannot see how they will generate enough income to cover the cost of these incentives. And this is before covering their running costs.

There's an awful lot of potential in having 1.5m current account customers. I would guess the next stage is attempting to convert those current accounts into prime relationships, at which point the income generating products can be rolled out. My understanding is that the UK market is a proving ground for rolling out the same tech/proposition to a whole batch of other worldwide territories. 

also, it depends what they did with all the money flowing into their savings accounts.

If they transferred it to the States, then the way the GBP has fallen against the USD means they will be well in profit, even after paying us 1.5% interest.

As they are below the threshold for being within the ringfencing rules in the UK, they can use it as cheap capital for the investment bank business. Borrow at 1.5%, ship to the US and use to fund investments which hopefully generate bigger returns for the bank.

MDMD

n3ophyte said:

whatleytom87 said:

There's an awful lot of potential in having 1.5m current account customers. I would guess the next stage is attempting to convert those current accounts into prime relationships, at which point the income generating products can be rolled out… snip

… and so it begins!

It’s got the same person running both nutmeg and the UK Consumer business now

https://www.altfi.com/article/9479_nutmeg-ceo-steps-down-following-sale-to-jp-morgan

WillowLea1962

Thumbs_Up said:

Regarding Tandem. What is the tactics at play if I can call it that.

Surely they won’t get inflows of new money will they? It is just a patsy for their apathy savers.  

 

In the App-only space they had dropped behind Atom’s 1.35% and this aligns them as they also did with the 1-year fix at 2.60% to match Atom rate

n3ophyte

whatleytom87 said:

There's an awful lot of potential in having 1.5m current account customers. I would guess the next stage is attempting to convert those current accounts into prime relationships, at which point the income generating products can be rolled out.

… and so it begins😄

Daliah

n3ophyte said:

whatleytom87 said:

There's an awful lot of potential in having 1.5m current account customers. I would guess the next stage is attempting to convert those current accounts into prime relationships, at which point the income generating products can be rolled out.

… and so it begins😄

That's no different in principle to other banks advertising their investment options

soulsaver

WillowLea1962 said:

Tandem instant access saver app now showing 1.35% AER 

Thanks for the that. I've included in ToTP (page 609)... However, 1.35%s will drop off in the next edict when I cut it back to top 10 ish. 

jwelly

I just opened an Atom account and the process was seamless. The security checks were not an issue, just be patient when setting up the photo ID.

I transferred funds from my Halifax current account, no issues at all. The funds appeared in my Atom account immediately.

So far so good. I'll hopefully have an update once I get my first interest payment in.