The Top Fixed Interest Savings Discussion Area

Patr100

Just thought the other day about an unintended benefit of locking down your cash into a fixed period -
whether monthly or annual paid interest . In these days of fraud  - while we all may feel we are savvy
enough to avoid scams etc - you never know - but if you can't access the lump sum  for the period yourself 
then it would be pretty hard to be persuaded to do so fraudulently unless we were clearly told to lie
about circumstances  - (ie generally the only way to access early would be probate or some catastrophic personal accident )- 
though we still need to be wary.

capehorn

I've read the discussion on Charter's 4.95% 2-year bond displaying at 4.6% once funded a few pages back, but I wanted to ask the experts on this board before I contact them.

I opened an account on the 12th November as an existing customer when the 4.95% was still available when logged in.  I then funded the account towards the end of 14-day window, when the rate of 4.95% may no longer have been available.  The account is showing as 4.6% and they have not replied to a message I sent them 4 days ago.

Having read the T&Cs it didn't sound to me like they can change the rate between opening and deposit (as long as the deposit is within 14 days), am I right that they should honour the rate at the time of the account opening?

jak22

They should and this seems more like a glitch - it doesn't happen to everyone and I'm not sure 4.6 represents any actual rate they've offered. Posters who got in touch rather than messaged seem to get it resolved.

capehorn

Many thanks Jak, that is what I thought.

Bacman

Some banks honour the rate you signed up even if the rate drops, perhaps some don't.

Rates are dropping now for savings, as that has happened due to the Budget then it isn't likely to improve saving interest rates for a while, so if you have money to invest and leave for the period chosen in a fixed rate bond, may be worth not "hanging on just in case" and getting what you can before rates drop further (if they are, who knows).

MarcMarc

Be prepared for a massive investment of your time if you want to go through the application process for some of the MSE top rated 1yr fixes. The banking details of SmartSave was not recognised by my bank so I have given them a wide berth. As for Investec, they want so many levels of personal details, photos and supporting documents that I frankly almost lost the will to live. I kind of think this is the idea - that banks and other savings institutions make you jump through so many hoops with so many restrictions that you are pummelled into accepting their far lower default interest rate savings accounts. If the Govt fancy landing a windfall any time soon it should be on the banks, who must be absolutely raking it in with their paltry interest rates as compared to that of the Bank of England

Band7

At present, most savings providers do not participate in the Confirmation of Payee system. This isn’t an issue as you can just do what we did for the last decade or two - you just send a small test payment to the new payee, and once your money has arrived, you can safely use the payee for larger amounts. There’s only one bank I am aware of where this “trick” doesn’t work, and that’s not SmartSave.

Most providers also identify you electronically but even if you have to provide extra proof of ID, that’s not an issue. Quite the contrary, you’d expect a bank has a foolproof system to verify a person is who they say they are.

It’s illogical and without evidence that banks would only put you through ID verification in order to choose lower interest rate products. 

alternate

Some new rates

5yr

Zopa 4.9% (interest compounded only)

Gatehouse 4.85% 

Melton BS 4.9% (branch only)

4yr

Zopa 4.85%  (interest compounded only)

Gatehouse 4.8%

3yr

Zopa 4.8%  (interest compounded only)

Firstsave 4.8%

AccessBank UK 4.86% (min 5k)

2yr

AcessBank UK 4.75% (min 5k)

Investec (via raisin) 4.7%

QIB (via raisin) 4.7%

Cahoot 4.7%



 

alternate

I am a bit sleepy, so it might just be me, but do are these two paragraphs from Gatehouse T&C seem contradictory?

As a reminder, we will apply the profit rate that was shown on our website when you applied for your account (or a higher rate if we have increased it), provided that you send us your deposit amount by bank transfer or by cheque within 14 days of making your application.

Please be aware that if we have not received your deposit amount as cleared funds within 45 days of making your application, the account will not be opened and you will need to re-apply.

Or does it mean the rate is valid for 14 days and after that you have a further 31 days - but rate might be lower?

bristolleedsfan

alternate said:

I am a bit sleepy, so it might just be me, but do are these two paragraphs from Gatehouse T&C seem contradictory?

As a reminder, we will apply the profit rate that was shown on our website when you applied for your account (or a higher rate if we have increased it), provided that you send us your deposit amount by bank transfer or by cheque within 14 days of making your application.

Please be aware that if we have not received your deposit amount as cleared funds within 45 days of making your application, the account will not be opened and you will need to re-apply.

Or does it mean the rate is valid for 14 days and after that you have a further 31 days - but rate might be lower?

"Thank you for your secure message of 14 November. You have 30 days from application to fully fund your account and we do not hold you to the amount you indicated on application."