The Top Easy Access Savings Discussion Area

Millyonare

Mortgage rates always soar like a rocket, while saving rates float up like a feather.

thor

The problem for savers is that the BOE decided a decade and a half ago that they had to give banks virtually interest free money which meant they have plenty of cash hoarded to satisfy the regulators. Andrew Bailey's remit is to keep inflation at 2% but in reality he really wants to protect house prices so savers will continue to pay the price. Because of this and the fact the banks have no obligation to follow the BOE rate, I don't expect saving rates to peak much more than 4% no matter how high inflation goes.

tg99

I have set up blue rewards to qualify for the Barclays Rainy Day Saver. Set up direct debits on the Barclays current account for the Blue Rewards which are funded on same day as DD taken via standing order from my main non-Barclays current account. Does it matter if the Barclays current account goes into temporary overdraft for an hour or two until the funds reach it? I have just logged in and noticed the account is in overdraft as the DD has been taken in the last hour and whilst my standing order has left my other bank within the last hour too it has not yet reached Barclays. Note that I don’t have an overdraft facility set up on Barclays. Thx.

cricidmuslibale

thor said:

The problem for savers is that the BOE decided a decade and a half ago that they had to give banks virtually interest free money which meant they have plenty of cash hoarded to satisfy the regulators. Andrew Bailey's remit is to keep inflation at 2% but in reality he really wants to protect house prices so savers will continue to pay the price. Because of this and the fact the banks have no obligation to follow the BOE rate, I don't expect saving rates to peak much more than 4% no matter how high inflation goes.

By saving rates I assume you mean those for easy access savings accounts. Many fixed rate accounts and quite a few regular savers are already paying above 4% right now. Otherwise I very much agree with the rest of your post!

Band7

tg99 said:

I have set up blue rewards to qualify for the Barclays Rainy Day Saver. Set up direct debits on the Barclays current account for the Blue Rewards which are funded on same day as DD taken via standing order from my main non-Barclays current account. Does it matter if the Barclays current account goes into temporary overdraft for an hour or two until the funds reach it? I have just logged in and noticed the account is in overdraft as the DD has been taken in the last hour and whilst my standing order has left my other bank within the last hour too it has not yet reached Barclays. Note that I don’t have an overdraft facility set up on Barclays. Thx.

You’ll be ok if your SOs arrive by the end of today, which they will. You are risking, however, that Barclays will not process the DDs in future as you have no overdraft facility, and there could also be issues with your SO arriving in time in future.

I don’t know the size of your DDs but assuming they are small, it would only cost you fractions of a penny in lost interest each month, if anything, to send the SO a few days early. I leave a few pounds in my Barclays current account all year round for my DDs - i.e. pay in £800 and only take out £797. The £3 more than cover my DDs.

tg99

Band7 said:

tg99 said:

I have set up blue rewards to qualify for the Barclays Rainy Day Saver. Set up direct debits on the Barclays current account for the Blue Rewards which are funded on same day as DD taken via standing order from my main non-Barclays current account. Does it matter if the Barclays current account goes into temporary overdraft for an hour or two until the funds reach it? I have just logged in and noticed the account is in overdraft as the DD has been taken in the last hour and whilst my standing order has left my other bank within the last hour too it has not yet reached Barclays. Note that I don’t have an overdraft facility set up on Barclays. Thx.

You’ll be ok if your SOs arrive by the end of today, which they will. You are risking, however, that Barclays will not process the DDs in future as you have no overdraft facility, and there could also be issues with your SO arriving in time in future.

I don’t know the size of your DDs but assuming they are small, it would only cost you fractions of a penny in lost interest each month, if anything, to send the SO a few days early. I leave a few pounds in my Barclays current account all year round for my DDs - i.e. pay in £800 and only take out £797. The £3 more than cover my DDs.

Thanks….yes I used to do the same as you when previously had blue rewards activated but now have a bigger DD going out to an investment account hence why preferred not to send the SO a few days earlier. I thought most banks now have a rule where if you don’t have enough money in your account for the DD earlier in the day when it tries to be taken then they try again at a certain time later in day (eg 3pm)? 

An hour or so after I posted last night the SO had arrived in my Barclays account turning it back positive so on this occasion it does seem to have worked ok as the DD remains taken from the account and no unauthorised overdraft fee has been charged (albeit guess it could be added later). One other slight concern I have is whether doing this every month will ‘flag up’ on their system as keeping going into overdraft even if only for a few hours and thus affect my credit record or mean Barclays close my account. So think may be safer to switch back to sending SO a few days earlier like I used to as cost will still be v small.

Band7

tg99 said:

Band7 said:

tg99 said:

I have set up blue rewards to qualify for the Barclays Rainy Day Saver. Set up direct debits on the Barclays current account for the Blue Rewards which are funded on same day as DD taken via standing order from my main non-Barclays current account. Does it matter if the Barclays current account goes into temporary overdraft for an hour or two until the funds reach it? I have just logged in and noticed the account is in overdraft as the DD has been taken in the last hour and whilst my standing order has left my other bank within the last hour too it has not yet reached Barclays. Note that I don’t have an overdraft facility set up on Barclays. Thx.

You’ll be ok if your SOs arrive by the end of today, which they will. You are risking, however, that Barclays will not process the DDs in future as you have no overdraft facility, and there could also be issues with your SO arriving in time in future.

I don’t know the size of your DDs but assuming they are small, it would only cost you fractions of a penny in lost interest each month, if anything, to send the SO a few days early. I leave a few pounds in my Barclays current account all year round for my DDs - i.e. pay in £800 and only take out £797. The £3 more than cover my DDs.

Thanks….yes I used to do the same as you when previously had blue rewards activated but now have a bigger DD going out to an investment account hence why preferred not to send the SO a few days earlier. I thought most banks now have a rule where if you don’t have enough money in your account for the DD earlier in the day when it tries to be taken then they try again at a certain time later in day (eg 3pm)? 

An hour or so after I posted last night the SO had arrived in my Barclays account turning it back positive so on this occasion it does seem to have worked ok as the DD remains taken from the account and no unauthorised overdraft fee has been charged (albeit guess it could be added later). One other slight concern I have is whether doing this every month will ‘flag up’ on their system as keeping going into overdraft even if only for a few hours and thus affect my credit record or mean Barclays close my account. So think may be safer to switch back to sending SO a few days earlier like I used to as cost will still be v small.

You are right, they do DDs again later in the day if they fail first time round early in the morning. There is still a very small risk that your SO might not arrive in time even for the later DD run.

I don't think you need to worry about being overdrawn at any time up to at least 16:00, probably much later, on a given day, as only end-of-day processing will establish your closing balance, and it's the daily closing balance which counts. I don't know when Barclays end-of-day processing begins but someone else may know.

A small arranged overdraft, just to cover your DDs, might be a precautionary option, though it would cost you the same as an unarranged one if you ever needed to use it.

ab56

Don't forget that the blue rewards will charge your current account with £5 per month and the 'reward part ' for paying 2 DDs creditted to a separate 'wallet'.

tg99

ab56 said:

Don't forget that the blue rewards will charge your current account with £5 per month and the 'reward part ' for paying 2 DDs creditted to a separate 'wallet'.

Yep I leave a small amount running in my account each month to meet the fee plus my other v small DD.

refluxer

Band7 said:

tg99 said:

Band7 said:

tg99 said:

I have set up blue rewards to qualify for the Barclays Rainy Day Saver. Set up direct debits on the Barclays current account for the Blue Rewards which are funded on same day as DD taken via standing order from my main non-Barclays current account. Does it matter if the Barclays current account goes into temporary overdraft for an hour or two until the funds reach it? I have just logged in and noticed the account is in overdraft as the DD has been taken in the last hour and whilst my standing order has left my other bank within the last hour too it has not yet reached Barclays. Note that I don’t have an overdraft facility set up on Barclays. Thx.

You’ll be ok if your SOs arrive by the end of today, which they will. You are risking, however, that Barclays will not process the DDs in future as you have no overdraft facility, and there could also be issues with your SO arriving in time in future.

I don’t know the size of your DDs but assuming they are small, it would only cost you fractions of a penny in lost interest each month, if anything, to send the SO a few days early. I leave a few pounds in my Barclays current account all year round for my DDs - i.e. pay in £800 and only take out £797. The £3 more than cover my DDs.

Thanks….yes I used to do the same as you when previously had blue rewards activated but now have a bigger DD going out to an investment account hence why preferred not to send the SO a few days earlier. I thought most banks now have a rule where if you don’t have enough money in your account for the DD earlier in the day when it tries to be taken then they try again at a certain time later in day (eg 3pm)? 

An hour or so after I posted last night the SO had arrived in my Barclays account turning it back positive so on this occasion it does seem to have worked ok as the DD remains taken from the account and no unauthorised overdraft fee has been charged (albeit guess it could be added later). One other slight concern I have is whether doing this every month will ‘flag up’ on their system as keeping going into overdraft even if only for a few hours and thus affect my credit record or mean Barclays close my account. So think may be safer to switch back to sending SO a few days earlier like I used to as cost will still be v small.

...I don't think you need to worry about being overdrawn at any time up to at least 16:00, probably much later, on a given day, as only end-of-day processing will establish your closing balance, and it's the daily closing balance which counts. I don't know when Barclays end-of-day processing begins but someone else may know.

Yes, I can vouch that this seems to be the case with Barclays. I often make large payments into - and then out of - my Barclays current account and, despite checking that the deposit has been received first, they often appear on my statement out of order meaning that, for a short time during the day, I am substantially overdrawn ('on paper' at least) and to a level far in excess of any agreed overdraft limit, but... because the balance at the end of the day has always been positive, it's never been a problem. I don't know what the timescales/deadlines would be to ensure this is always the case, though.