The Top Easy Access Savings Discussion Area

happybagger

Deleted_User said:

happybagger said:

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.

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.

What's to say they wouldn't consider that as £25 withdrawal of the principal £5k?

In fact, the wording implies it is:

"bonus is only paid to you by Chip when you withdraw your full Chip balance"

That's exactly what I said. Did you not notice I said you'd only get interest on the remaining £4975?

Of course I did. My point was not about what is then subsequently subject to interest, it was that it is not covered by FSCS as it has not become part of the balance. So by the end of a year, anyone who puts £85k in this account would have lost over £2500 in coverage by 'skimming' the 'bonus' rather than zeroing the account

k_man

AmityNeon said:

Deleted_User said:

AmityNeon said:

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).

Yeah you could do. I think it works out you'd be 6p a month better off with £10,000 in the bank.

The bonus doesn't compound, so if you just ignore it completely for a whole year, it's practically the same as a standard easy-access account paying 3% interest annually. To achieve parity, withdaw the principal balance after a year, retrieve the accrued bonus, and then redeposit everything.

To achieve 3.04% AER, withdraw the principal balance balance every month (including the monthly bonus), and then redeposit to allow compounding.

Payments into Chip aren't instant, so withdraw and redeposit each month may lead to a few days lost interest

Kazza242

fryedslyce said:
Coventry Limited Access Savers going up to 3.25% from 06/01

Coventry's Four Access Saver is also going up to 3.25%.

Their First Home Saver (which allows monthly deposits of up to £1,000 per month and unlimited withdrawals) will be going up from 2.95% to 5.00%

w.e.f. 6th January 2023.

kaMelo

That's a pretty spectacular increase on the FHS given the monthly amount. Guess I'm filling that up from Jan.

AmityNeon

k_man said:

AmityNeon said:

Deleted_User said:

AmityNeon said:

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).

Yeah you could do. I think it works out you'd be 6p a month better off with £10,000 in the bank.

The bonus doesn't compound, so if you just ignore it completely for a whole year, it's practically the same as a standard easy-access account paying 3% interest annually. To achieve parity, withdaw the principal balance after a year, retrieve the accrued bonus, and then redeposit everything.

To achieve 3.04% AER, withdraw the principal balance balance every month (including the monthly bonus), and then redeposit to allow compounding.

Payments into Chip aren't instant, so withdraw and redeposit each month may lead to a few days lost interest

How long do your deposits take, and using which deposit method?

Bridlington1

kaMelo said:

That's a pretty spectacular increase on the FHS given the monthly amount. Guess I'm filling that up from Jan.

I'll be putting £1k in from 31st December as 6 days at the lower interest rate will be recovered within 1 day of the interest rate rise if my top paying EA account remains at 3%.

jimexbox

Kazza242 said:

fryedslyce said:
Coventry Limited Access Savers going up to 3.25% from 06/01

Coventry's Four Access Saver is also going up to 3.25%.

Their First Home Saver (which allows monthly deposits of up to £1,000 per month and unlimited withdrawals) will be going up from 2.95% to 5.00%

w.e.f. 6th January 2023.

I've read the t&c and there isn't really anything to stop anybody opening the first home saver account. 1k a month at 5% is very tempting. 

Kazza242

jimexbox said:

Kazza242 said:

fryedslyce said:
Coventry Limited Access Savers going up to 3.25% from 06/01

Coventry's Four Access Saver is also going up to 3.25%.

Their First Home Saver (which allows monthly deposits of up to £1,000 per month and unlimited withdrawals) will be going up from 2.95% to 5.00%

w.e.f. 6th January 2023.

I've read the t&c and there isn't really anything to stop anybody opening the first home saver account. 1k a month at 5% is very tempting. 

The Coventry are pretty flexible about the First Home Saver account.  At the soon to be 5.00% rate and unlimited withdrawals, it's a really good account.  I wouldn't wait long if you intend to open it.

Mr._H_2

Kazza242 said:

Coventry's … First Home Saver (which allows monthly deposits of up to £1,000 per month and unlimited withdrawals) will be going up from 2.95% to 5.00%

w.e.f. 6th January 2023.

Thanks for the heads-up. Can confirm there's no check that you are actually a first-time buyer; I just filled in the online application form and account was opened immediately.

jak22

Ive seen a report that Chase is raising to 2.7% - maybe from 4 Jan