The Top Easy Access Savings Discussion Area

happybagger

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"

[Deleted User]

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?

AmityNeon

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.

[Deleted User]

Which easy access account is paying 3% annually? I missed that.

RG2015

Deleted_User said:

Which easy access account is paying 3% annually? I missed that.

Virgin Money Flexible ISA

fryedslyce

dekkard said:

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.

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

[Deleted User]

RG2015 said:

Deleted_User said:

Which easy access account is paying 3% annually? I missed that.

Virgin Money Flexible ISA

Yeah I've got that. I thought that wasn't included as you have to have a current account with them.

RG2015

Deleted_User said:

RG2015 said:

Deleted_User said:

Which easy access account is paying 3% annually? I missed that.

Virgin Money Flexible ISA

Yeah I've got that. I thought that wasn't included as you have to have a current account with them.

Sorry, just answered your question. I didn't realise that there were restrictions on inclusions. 

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