The Top Easy Access Savings Discussion Area

Band7

BooJewels said:

.....no one to check my thinking

Just ask here. There are plenty of old hands about who are happy to share their knowledge.

Generally speaking, you shouldn't be afraid of putting up to £85k into any savings provider who offers FSCS protection, even if you have never heard of them before. 

How you split your money across easy access, fixed term, notice accounts, regular savers, monthly vs annual interest, ISAs vs non-ISAs, depends on when you need your money, how much interest you expect to earn, and what your total taxable income is.

May be set up a separate thread, as this one is about easy access accounts only.

cookster

Band7 said:

BooJewels said:

However, looking at their other offerings (I'd not heard of them until I started reading this forum), their Escalator Instant might be more suitable - for me at least.  You get a different rate of interest depending on your balance.  A bit less at 2.65% for a £25k balance, but if you needed to take out £5k for example, you'd still get 2.45% on the balance. Not quite such a brutal drop if you have a household emergency.

The Escalator account might work for you but even if you missed the much simpler 2.75% easy access accounts that were available in October, there is still the 2.81% Al Rayan Easy Saver.

Many of the 4%+ Regular Savers also let you withdraw/close in emergencies, so they would be a good place to keep some money that might be needed in emergencies. I appreciate you might not have / want have the pre-req current accounts, though.

Any pitfalls to the Al Rayan Easy Saver?

Fully protected? I got around 30k to invest.

t1redmonkey

cookster said:

Band7 said:

BooJewels said:

However, looking at their other offerings (I'd not heard of them until I started reading this forum), their Escalator Instant might be more suitable - for me at least.  You get a different rate of interest depending on your balance.  A bit less at 2.65% for a £25k balance, but if you needed to take out £5k for example, you'd still get 2.45% on the balance. Not quite such a brutal drop if you have a household emergency.

The Escalator account might work for you but even if you missed the much simpler 2.75% easy access accounts that were available in October, there is still the 2.81% Al Rayan Easy Saver.

Many of the 4%+ Regular Savers also let you withdraw/close in emergencies, so they would be a good place to keep some money that might be needed in emergencies. I appreciate you might not have / want have the pre-req current accounts, though.

Any pitfalls to the Al Rayan Easy Saver?

Fully protected? I got around 30k to invest.

There are no pitfalls really, plenty of people on these forums have an account with them as they often pay the leading easy access rate.  Works the same as any other savings account (except they call interest 'Expected profit' instead).

And they are FSCS protected up to £85k as you would expect too.

Band7

cookster said:

Any pitfalls to the Al Rayan Easy Saver?

Fully protected? I got around 30k to invest.

I have used Al Rayan savings accounts for several years. Never had any issues with it. It's a bit different in terminology as they pay "expected profit" rather than interest, but it's interest to all intents and purposes.

You ideally need a mobile to operate the account, though there is a somewhat cumbersome online option, too. They do Faster Payment but only during working hours on working days. 

They have the full FSCS protection.

Though do you really want/need £30k in instant access? Does it all have to be in a single account? You could get better interest if you split your savings.

BooJewels

Band7 said:

BooJewels said:

.....no one to check my thinking

Just ask here. There are plenty of old hands about who are happy to share their knowledge.
[snip]
May be set up a separate thread, as this one is about easy access accounts only.

Thank you - I have toyed with doing so, but it's too public here for that conversation - if we were around a dinner table, I'd be happy to discuss it.  It just feels a bit too personal at the moment.

Band7

BooJewels said:

Band7 said:

BooJewels said:

.....no one to check my thinking

Just ask here. There are plenty of old hands about who are happy to share their knowledge.
[snip]
May be set up a separate thread, as this one is about easy access accounts only.

Thank you - I have toyed with doing so, but it's too public here for that conversation - if we were around a dinner table, I'd be happy to discuss it.  It just feels a bit too personal at the moment.

I understand it's not easy, or not always appropriate, to share your plans / questions/ circumstances. But please don't hold back asking questions if you are uncertain. You are anonymous on the Forum, and remember: there's no such thing as a stupid question - - only stupid answers!

pecunianonolet

25k at 3% makes 750 in interest a year and that measns many would be liable to tax as they are over their PSA. Seems like they only want to catch the the big fish here and not deal with the regular rate chasers and fund movers.

Band7

pecunianonolet said:

25k at 3% makes 750 in interest a year and that measns many would be liable to tax as they are over their PSA. Seems like they only want to catch the the big fish here and not deal with the regular rate chasers and fund movers.

Only higher rate, and additional rate, tax payers would have to pay tax on £750 interest. Some low earners won't pay tax on savings interest unless their total income incl. savings interest exceeds £18,570. Even then, they'd only pay tax on the amount above £18,570, so they'd still be left with a positive income.

A savings provider wouldn't know whether a saver needs to pay tax.

There are several 3%, or 3%+, options for people who have less than £25k. All of these higher rate easy access options come with some caveat or other.

pecunianonolet

Band7 said:

pecunianonolet said:

25k at 3% makes 750 in interest a year and that measns many would be liable to tax as they are over their PSA. Seems like they only want to catch the the big fish here and not deal with the regular rate chasers and fund movers.

Only higher rate, and additional rate, tax payers would have to pay tax on £750 interest. Some low earners won't pay tax on savings interest unless their total income incl. savings interest exceeds £18,570. Even then, they'd only pay tax on the amount above £18,570, so they'd still be left with a positive income.

A savings provider wouldn't know whether a saver needs to pay tax.

There are several 3%, or 3%+, options for people who have less than £25k. All of these higher rate easy access options come with some caveat or other.

Agree, many won't pay anyhing but I am one of those who would be liable to tax. 

Band7

pecunianonolet said:

Band7 said:

pecunianonolet said:

25k at 3% makes 750 in interest a year and that measns many would be liable to tax as they are over their PSA. Seems like they only want to catch the the big fish here and not deal with the regular rate chasers and fund movers.

Only higher rate, and additional rate, tax payers would have to pay tax on £750 interest. Some low earners won't pay tax on savings interest unless their total income incl. savings interest exceeds £18,570. Even then, they'd only pay tax on the amount above £18,570, so they'd still be left with a positive income.

A savings provider wouldn't know whether a saver needs to pay tax.

There are several 3%, or 3%+, options for people who have less than £25k. All of these higher rate easy access options come with some caveat or other.

Agree, many won't pay anyhing but I am one of those who would be liable to tax. 

Lucky you.

And lucky me. I bust my PSA for the year a while ago. On balance, I prefer to pay tax on a higher amount of interest, rather than getting no higher amount of interest. I am sure you do too