The Top Easy Access Savings Discussion Area

chris_the_bee

Sad_Dad said:

I opening the CHIP savings account the other day, so far so good. I tested a 2k withdrawal and it was in my attached bank account within a few minutes.

I think I am right in saying they pay a monthly bonus rather than savings interest. Does anyone know if or how I am supposed to declare the bonus?

HMRC treat it as interest earned

I-LOV-MONEY

I almost 'hate' it when the BoE change the base rate.  It means scrabbling around looking for the best savings account again.  Currently my dosh is with Santander (2.75%).  I will leave it for a few days and then see what is available once things have settled down.

AmityNeon

Band7 said:

My Premium account was actually opened on Nov 25, I received their request for the signature 2 weeks later, and they say they still have not received my signature form, which I had posted by return. They have now returned my initial,small, deposit for the third time. Hopeless.

I'm still waiting to receive postal mail that was sent on Nov 25. If you posted the signature return late last week, I wouldn't expect them to receive it until at least next year, unless perhaps it was via special delivery, in which case a little sooner.

Thankfully there are various 3% options all of which don't require relying on snail mail or such a high minimum balance.

dekkard

Coventry Building Society:

"The Bank of England Base Rate increased on Thursday 15 December. We're reviewing our rates and will update our website soon."

Love how quick they are to update their site.

Eirambler

I-LOV-MONEY said:

I almost 'hate' it when the BoE change the base rate.  It means scrabbling around looking for the best savings account again.  Currently my dosh is with Santander (2.75%).  I will leave it for a few days and then see what is available once things have settled down.

To be honest, unless you're interested in very small gains (0.2% or less), I don't think much will change this side of new year. That Santander rate remains very competitive two months on from it's launch, despite the interest rate rises.

Band7

Sad_Dad said:

I opening the CHIP savings account the other day, so far so good. I tested a 2k withdrawal and it was in my attached bank account within a few minutes.

I think I am right in saying they pay a monthly bonus rather than savings interest. Does anyone know if or how I am supposed to declare the bonus?

Just be aware of those weird CHIP terms regarding the bonus

Sad_Dad

@Band7 That's weird and interesting. So I guess I should be able to withdraw the full amount just before the new tax year and the bonus will be counted as being in this tax year.

With all these high interest regular savers, I will be over the PSA in the next tax year.

[Deleted User]

As it was explained to me by CHIP.

You could put say £5,000 in the account. End of the month receive the bonus of for arguments sake say £25. You could then withdraw the £25. Now, as it would stand you would still have £5000 in the account but only £4975 would be earning a bonus.

I'm not clever enough to work out how many months you could do that for before you'd be better off at a lower interest rate.

[Deleted User]

Okay, I've had a go (just for fun). If I've got it wrong I apologise.

If you put £10,000 in CHIP (3%), AL RAYAN (2.82%) and SANTANDER (2.75%) and withdrew the interest/bonus each month, it would take you 26 months to be worse off with CHIP that AL RAYAN and 35 months to be worse off with CHIP than SANTANDER.

AmityNeon

Deleted_User said:

As it was explained to me by CHIP.

You could put say £5,000 in the account. End of the month receive the bonus of for arguments sake say £25. You could then withdraw the £25. Now, as it would stand you would still have £5000 in the account but only £4975 would be earning a bonus.

Why would you want to do that? Why not withdraw the whole balance, retrieve the bonus, deposit the balance again, and then deposit the bonus one working day later (when it's received).