The Top Easy Access Savings Discussion Area

What_time_is_it

SonOfPearl said:

Malchester said:

Why take out a double access account paying 2.5% when you can get full instant access at a higher rate then this. Why restrict yourself?

I can't speak for anyone else, but there are quite a few institutions I wouldn't use for various reasons (app only, Sharia, previous bad experience). Also, I do have unrestricted instant access saving accounts at higher rates than 2.5% but I need to spread my money around to stay under the £85k FSCS limit. 

Interesting. I've never heard anybody discount Sharia investments on principal before. Personally I find that they often align with my own ethics on which industries to avoid.

changearound1

Expected profit as opposed to interest is a source of concern for some.

What_time_is_it said:

SonOfPearl said:

Malchester said:

Why take out a double access account paying 2.5% when you can get full instant access at a higher rate then this. Why restrict yourself?

I can't speak for anyone else, but there are quite a few institutions I wouldn't use for various reasons (app only, Sharia, previous bad experience). Also, I do have unrestricted instant access saving accounts at higher rates than 2.5% but I need to spread my money around to stay under the £85k FSCS limit. 

Interesting. I've never heard anybody discount Sharia investments on principal before. Personally I find that they often align with my own ethics on which industries to avoid.

phillw

changearound1 said:

Expected profit as opposed to interest is a source of concern for some.

What is the concern? If you get notification of the expected profit being decreased then you transfer elsewhere, in the same way you would if you were notified of a decrease in interest.

intalex

phillw said:

changearound1 said:

Expected profit as opposed to interest is a source of concern for some.

What is the concern? If you get notification of the expected profit being decreased then you transfer elsewhere, in the same way you would if you were notified of a decrease in interest.

How does it work with fixed rate accounts?
Can they legally reduce the expected profit with a nominal notice period that is less than the remaining term?

Sensory

intalex said:

phillw said:

changearound1 said:

Expected profit as opposed to interest is a source of concern for some.

What is the concern? If you get notification of the expected profit being decreased then you transfer elsewhere, in the same way you would if you were notified of a decrease in interest.

How does it work with fixed rate accounts?
Can they legally reduce the expected profit with a nominal notice period that is less than the remaining term?

Yes, but they then allow to close the account early, paying all expected profit to the date of closure at the previously agreed fixed rate.

intalex

Sensory said:

intalex said:

phillw said:

changearound1 said:

Expected profit as opposed to interest is a source of concern for some.

What is the concern? If you get notification of the expected profit being decreased then you transfer elsewhere, in the same way you would if you were notified of a decrease in interest.

How does it work with fixed rate accounts?
Can they legally reduce the expected profit with a nominal notice period that is less than the remaining term?

Yes, but they then allow to close the account early, paying all expected profit to the date of closure at the previously agreed fixed rate.

Isn't that a deal breaker though? After all, the customer doesn't get such a break clause should rates go higher...

Sensory

intalex said:

Sensory said:

intalex said:

phillw said:

changearound1 said:

Expected profit as opposed to interest is a source of concern for some.

What is the concern? If you get notification of the expected profit being decreased then you transfer elsewhere, in the same way you would if you were notified of a decrease in interest.

How does it work with fixed rate accounts?
Can they legally reduce the expected profit with a nominal notice period that is less than the remaining term?

Yes, but they then allow to close the account early, paying all expected profit to the date of closure at the previously agreed fixed rate.

Isn't that a deal breaker though? After all, the customer doesn't get such a break clause should rates go higher...

No, the account's terms and conditions are clear. If the bank cannot meet its target profit, the customer's deposit can be released from the fixed term; this is the 'deal' as agreed upon application.

Rates 'going higher' is irrelevant.

For this reason, I opt for traditional fixed terms myself.

intalex

Right so it is a deal breaker for you, as it is for me

Sensory

intalex said:

Right so it is a deal breaker for you, as it is for me

I thought you were asking whether the banks were breaking any deals, as opposed to asking hypothetically about whether the condition was acceptable from a general customer standpoint.

Malchester

I've had an account with Al Rayan but didng stay long as I had all sorts of issues with them but this was nothing to do with being Sharia bank but their incompetence. On the other hand I  have accounts with Gatehouse Bank who are Sharia and, I have them to be excellent. Customers will have issues with all banks from time to time, Sharia or otherwise. And there is always the get out of withdrawing if expected profit is not met and being paid expected profit up to withdrawal.