The Top Easy Access Savings Discussion Area

Rollinghome

BigBlueSky said:

Rollinghome said:

Do Yorkshire pay interest for the day they receive funds? I assume not, as you could then be receiving interest on funds from two banks at once.  Does Shawbrook?

They should, to be fair, be paying interest either on the day received or the day the actual withdrawal  is made, which is the day after the withdrawal request is made. Otherwise the AER figure would be wrong.

I was always of the understanding that if the funds are in the account by midnight then you receie interest for that day.  So if you deposit funds into an account at 11:59pm you receive a full days interest.  If you withdraw funds from an account at 11:59pm you lose that days interest.

That seems to be the most common approach now, but it doesn't seem to be universal, especially with building societies. Perhaps because they use a clearing bank. 

As you wouldn't expect to receive interest for that day from both the bank/BS you are transferring to and the bank/BS you are transferring from, I'd guess Yorkshire do it the other way around.

Oasis1

SJMALBA said:

Shawbrook EA Issue 29 - 1.86%

https://www.shawbrook.co.uk/direct/savings/personal-savings/easy-access-savings-accounts/

Had a text telling me my interest had been increased. Very impressed to be honest, though still have majority of savings in Zopa boosted pot. Question is whether Zopa will increase their easy access account now to stay on top.

BlackthornU

Rollinghome said:

As you wouldn't expect to receive interest for that day from both the bank/BS you are transferring to and the bank/BS you are transferring from, I'd guess Yorkshire do it the other way around.

Yorkshire don't pay interest on the day they send you the money - but they do pay it for the day you 'withdraw' they money. But the money only lands in your current / nominated account the next day - when, if you move fast enough, you can get it earning interest in another account that day.
But Shawbrook seem to, in a way, charge you a days interest for a withdrawal - as it goes missing overnight for which you don't get interest. 

Rollinghome

BlackthornU said:

Rollinghome said:

As you wouldn't expect to receive interest for that day from both the bank/BS you are transferring to and the bank/BS you are transferring from, I'd guess Yorkshire do it the other way around.

Yorkshire don't pay interest on the day they send you the money - but they do pay it for the day you 'withdraw' they money. But the money only lands in your current / nominated account the next day - when, if you move fast enough, you can get it earning interest in another account that day.
But Shawbrook seem to, in a way, charge you a days interest for a withdrawal - as it goes missing overnight for which you don't get interest. 

Which night?  If Yorkshire don't pay on the day they receive it, but Shawbrook do (if that's the case, as I assume), and Yorkshire pay up to the day of withdrawal, but Shawbrook pay to the day before then, ignoring specific cut- off times, where is the charge for a withdrawal?  It appears to be 'swings and roundabouts'.

I understand that Shawbrook withdrawals do arrive late in the day, which could make a difference in some circumstances, so perhaps more of a problem.

Rollinghome

Bemr said:

They will both pay interest from the day of deposit.  Neither will pay interest on the day of withdrawal.  The distinction is how each institution classes the day of withdrawal - is it the day you request it, or the day it gets sent?  For shawbrook it seems to be the day of request but for YBS it’s the following day when it’s sent.  So you lose a day’s interest with shawbrook

BlackthornU posted:

"Looking at Shawbrook T&C they state that withdrawals requested before 2.30pm will be in your nominated account the next day.
That's fine with me. But they also state 10.6 Interest is earned up to and including the day prior to withdrawal or closure ."

It's fairly normal for interest to be paid for the day of deposit and up to their cut-off point on the day prior to withdrawal. It used to be quite common for building societies to do it the other way around. What is it that makes you think that Shawbrook regards the day of "withdrawal" as being the same as the day of the "withdrawal request"? If that were the case, then you could lose a lot more than just a day.

If someone is saying that YBS pay a full day's interest on both the day of deposit and on the day of withdrawal, then that seems odd, so could they cite the source?

[Deleted User]

I like the way the main site keeps you up to date with the best rates, however I think they are missing a trick by not showing when interest is paid. I've recently chased the rates, moving from CHASE, to Virgin, now ZOPA. The former and latter pay monthly, but VIRGIN is 3 monthly. Recently another company (Cynergy?) had the best rate, but they paid interest yearly. With all these rates slowly increasing and people hopping from account to account you don't really want to be waiting a year for your interest payment.

eskbanker

Deleted_User said:

I like the way the main site keeps you up to date with the best rates, however I think they are missing a trick by not showing when interest is paid. I've recently chased the rates, moving from CHASE, to Virgin, now ZOPA. The former and latter pay monthly, but VIRGIN is 3 monthly. Recently another company (Cynergy?) had the best rate, but they paid interest yearly. With all these rates slowly increasing and people hopping from account to account you don't really want to be waiting a year for your interest payment.

The main savings article on here can only ever be a summary and can't be expected to have every single detail, but if monthly interest is important to you then it's one of the filtering options on some of the more comprehensive and sophisticated comparison sites such as Moneyfacts.

And for anyone hopping from account to account, they don't need to wait a year for interest - if they're that keen to receive it they can simply close the account they're moving from....

Rollinghome

Deleted_User said:

I like the way the main site keeps you up to date with the best rates, however I think they are missing a trick by not showing when interest is paid. I've recently chased the rates, moving from CHASE, to Virgin, now ZOPA. The former and latter pay monthly, but VIRGIN is 3 monthly. Recently another company (Cynergy?) had the best rate, but they paid interest yearly. With all these rates slowly increasing and people hopping from account to account you don't really want to be waiting a year for your interest payment.

Just look for the AER.  That takes into account how often interest is paid and the compounding effect. 

If you keep changing accounts, then you will get a smidgen better than the published AER and better than with monthly or quarterly interest with the same AER by choosing annual interest and closing early.   When I say a smidgen, I mean a smidgen, in these times of low rates.

You won't wait a year for your interest if you close an annual account early.

Molehusband

Bemr said:

They will both pay interest from the day of deposit.  Neither will pay interest on the day of withdrawal.  The distinction is how each institution classes the day of withdrawal - is it the day you request it, or the day it gets sent?  For shawbrook it seems to be the day of request but for YBS it’s the following day when it’s sent.  So you lose a day’s interest with shawbrook

Does it really matter precisely whether interest is paid on the day of withdrawal or the day before? It seems for all practical purposes the difference is miniscule. What this thread is about is easy accounts paying the best rate of interest rather than whether interest may be paid up to the the particular time on the day a withdrawal is made. For, example, on a withdrawal of up to around £20,000, one day of interest lost is likely to affect you by the princely sum of about 1 penny or less. I'm not going to lose any sleep over that. It certainly won't prevent me spending a penny if I need to!

Rollinghome

Molehusband said:

For, example, on a withdrawal of up to around £20,000, one day of interest lost is likely to affect you by the princely sum of about 1 penny or less. I'm not going to lose any sleep over that. It won't prevent me spending a penny if I need to!

Doesn't sound as if you're in the best of accounts.  £20k in Shawbrook would earn you £372 pa, so £1.02p per day by my dodgy arithmetic.