Marcus accounts Vs Coventry BS interest account?

dylantombides

I currently have a Marcus account with £14.5k in it. It increases by about £1k per month. I also have a Nationwide current account which I use for everyday spending. I keep about £200 in here and the rest is moved to the Marcus account for higher interest.

I've seen there is a new "high" interest account on the market... Coventry BS interest account.

Would it be worth me moving my money over to this account rather than using the Marcus account?

In addition, the Coventry BS interest account has a monthly saver I could use for more money.

I'm looking to buy a property in the next 6-8 months so I'm saving for a deposit, which would mean my money could be tied up in the monthly saver, however my parents said they'd give me the money that's trapped in the monthly saver, and then I pay them back when it's out of the monthly saver (and keep the money I've made from storing it in there).

castle96

just done Cov (3 w/drawls pa) also have Marcus (no restictions)

abz88

In terms of Marcus vs Coventry it depends what you need in an account. Coventry is 0.01% better in interest and tax free (you need to be over your tax free savers amount to benefit from the second part) but you can only make 3 withdrawals a year with Coventry. So if you plan on more withdrawals than this, then Marcus is better.
If you grow your savings by £1000 a month, you would be better looking at putting this into Regular Savers where you would earn more in interest.

castle96

abz - pl explain. Surely neither will be tax free if you are over the limit. Yes PAID tax fee, but taxable. I am missing something obviously

alanwsg

SAGA have just introduced a 1.40% rate account (including a bonus rate of 0.25% for a year)
easy access - no restrictions on number of withdrawals.

crumpetman

0.01% is such a tiny amount, 10p per £1k per year, that it is not worth choosing the Coventry account with limited withdrawals instead of the Marcus account with no restrictions.

polymaff

dylantombides wrote: »

I've seen there is a new "high" interest account on the market... Coventry BS interest account.

abz88 wrote: »

In terms of Marcus vs Coventry it depends what you need in an account. Coventry is 0.01% better in interest and tax free

You both need to be more informative. There are two Coventry accounts - and as neither of you made it clear which one you were talking about...

null points...:)

Clue: one is an ISA, the other isn't.

E&OE

abz88

castle96 wrote: »

abz - pl explain. Surely neither will be tax free if you are over the limit. Yes PAID tax fee, but taxable. I am missing something obviously

polymaff wrote: »

You both need to be more informative. There are two Coventry accounts - and as neither of you made it clear which one you were talking about...

null points...:)

Clue: one is an ISA, the other isn't.

E&OE

Polymaff, thanks for point that out, I hadn't realised there was an ISA and non-ISA version of the account! To castle96, if you have the ISA version of the account, interest is tax free.

polymaff

abz88 wrote: »

Polymaff, thanks for point that out, I hadn't realised there was an ISA and non-ISA version of the account! To castle96, if you have the ISA version of the account, interest is tax free.

The newsworthy point is that this is all so "nineties" when ISAs still retained some of the irrational pixie-dust that the government-pushed schemes (think: the original SAYE scheme), carried. Post-PSA, many organisations seemed to twig that ISAs were just a niche product for savings tax payers and so positioned them 20% below the non-ISA rates for similar products. Not so here?...:)

colsten

alanwsg wrote: »

SAGA have just introduced a 1.40% rate account (including a bonus rate of 0.25% for a year)
easy access - no restrictions on number of withdrawals.

The SAGA account is operated by Marcus. It is unclear to me why anyone would choose SAGA at 1.4% when they can get 1.45% at Marcus.

abz88

polymaff wrote: »

The newsworthy point is that this is all so "nineties" when ISAs still retained some of the irrational pixie-dust that the government-pushed schemes (think: the original SAYE scheme), carried. Post-PSA, many organisations seemed to twig that ISAs were just a niche product for savings tax payers and so positioned them 20% below the non-ISA rates for similar products. Not so here?...:)

I think Coventry did a similar ISA when Marcus was at 1.5% and they launched a 1.5% ISA? (Annoyingly I was too slow to take it up). Possibly just Coventry's USP for savings to get customers in? Will be interesting to see if any other ISA providers follow them.