The Top Easy Access Savings Discussion Area

pecunianonolet

Deleted_User said:

CHIP 2.9%. Where did that come from?

I will give this a miss in that case. I stay with my Al Ryan 2.81% (hoping for an increase after next BoE interest increase) and Santander 2.75%

[Deleted User]

I had a CHIP account before, they were fine. I've got a few grand coming to me in a few days without a home. 2.9% will do just fine. (I also have Al Rayan & Santander but I feel it is important to encourage those that give the best rate. 

Band7

CHIP instant savings T&Cs 
 https://global-uploads.webflow.com/5d65390243727621f8413d93/6362b16b165c910c816545c6_Chip%20Instant%20Access%20Account%20Terms%20(ClearBank).pdf

pecunianonolet

Deleted_User said:

I had a CHIP account before, they were fine. I've got a few grand coming to me in a few days without a home. 2.9% will do just fine. (I also have Al Rayan & Santander but I feel it is important to encourage those that give the best rate. 

I guess they just test the market and have priced in next weeks BoE rise. The more interesting question for me is, based on,

a) They claim they are not a bank
b) They pay only a bonus,
c) Bonus doesn't compound
d) Bonus can only be withdrawn together with total funds (moving higher sums in and out monthly to access the bonus could lead to hours of calls to speak to fraud departments)

--> Will HMRC still treat it as interest because technically, the interest they pay is 0% and they are not a bank as they say??? Should the bonus not be treated as a CG?

For me the top rate isn't necessarilly the best rate if I have to jump through many hoops for just 0.09% more compared to Al Ryan. 

[Deleted User]

Yep, all good points. Each to their own.

dcs34

Just a reminder from today:

• Newbury Existing Member Account up to 3% on £4,000 / year
• https://www.newbury.co.uk/savings/accounts/existing-member-account/
  

• Welcome to Newbury Account up to 2.8% on £3,000
• https://www.newbury.co.uk/savings/accounts/welcome-newbury/
  

Band7

I am massively impressed with the speed of CHIP 2.9% account deposits and withdrawals. They are both literally instant between CHIP and the nominated current account, a Santander Everyday in my case. What's even better, Santander doesn't seem to have an issue with a large payment to a brand new account, as the money was pulled into CHIP with Open Banking. Way to go!


You don't need to authorise CHIP to do any autosaving, btw, and I won't use that function.

ForumUser7

pecunianonolet said:

Deleted_User said:

I had a CHIP account before, they were fine. I've got a few grand coming to me in a few days without a home. 2.9% will do just fine. (I also have Al Rayan & Santander but I feel it is important to encourage those that give the best rate. 

I guess they just test the market and have priced in next weeks BoE rise. The more interesting question for me is, based on,

a) They claim they are not a bank
b) They pay only a bonus,
c) Bonus doesn't compound
d) Bonus can only be withdrawn together with total funds (moving higher sums in and out monthly to access the bonus could lead to hours of calls to speak to fraud departments)

--> Will HMRC still treat it as interest because technically, the interest they pay is 0% and they are not a bank as they say??? Should the bonus not be treated as a CG?

For me the top rate isn't necessarilly the best rate if I have to jump through many hoops for just 0.09% more compared to Al Ryan. 

Does anyone know the answer to this HMRC point please? It’s a very good point, I guess the way to figure it out is if tax is charged on interest bonuses at other banks which paid it already last tax year. I don’t have any accounts with bonuses so I’m unsure.

Bridlington1

Don't now if it's already been mentioned elsewhere (I can't see it on this thread but that doesn't mean much). Chorley Easy access saver (4 withdrawals) now pays 2.85% if 4 or less withdrawals are made (1% if 5 or more withdrawals are made).
Min balance of £500
Can be opened and managed online, by branch or by post. However withdrawals can not be made online.

Patr100

pecunianonolet said:

a) They claim they are not a bank
b) They pay only a bonus,
c) Bonus doesn't compound
d) Bonus can only be withdrawn together with total funds (moving higher sums in and out monthly to access the bonus could lead to hours of calls to speak to fraud departments)

--> Will HMRC still treat it as interest because technically, the interest they pay is 0% and they are not a bank as they say??? Should the bonus not be treated as a CG?

I don't know the definitive answer to that but as CG usually involves the sale of an asset , I suspect it would come under "unearned income".
Note, as it says,  the list is not exhaustive :

Unearned Income (Investment Income)

Unearned income is any income that an individual has which is not a pension and has not been earned by them as an employee, by carrying out a profession or by running their own business. Although this list is not exhaustive, unearned income includes:

interest from bank and building society accounts

dividends on shares

interest on stocks

rental income received (unless the rental income is part of the income of a trading business).

The following tables RDRM10425 to RDRM10440 will tell you how earned and unearned income arising to resident and not resident individuals is treated.

https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm10415#:~:text=Unearned income is any income,dividends on shares