The Top Fixed Interest Savings Discussion Area

refluxer

20122013 said:

May I ask what you did so you get your interest paid on the 1st of each month? as I would like to do the same please. 

You would normally need to open a fixed rate account on the 1st (and possibly even fund it on the 1st if the bank starts the term on the date of your first deposit) in order to get monthly interest paid on the first of every month.

intalex

20122013 said:

May I ask what you did so you get your interest paid on the 1st of each month? as I would like to do the same please. 

It's all about timing and windows - the FirstSave account has a 10 working day window to make the first payment (and then a further 10 calendar day window for further payments).

So having opened mine today, I have until 1st December to make my first payment, and if I pay in the product's required minimum balance of £1000 on 1st December, I think the account will be opened as of that day, and so monthiversary interest payments will also be paid on 1st of each subsequent month. I will pay in more funds over the subsequent 10 calendar days, but I am expecting my interest payment to be linked to account opening which I believe will be linked to the day I will have funded it with the £1000 minimum balance.

This is what I experienced with other similar banks (some operating on the same platform), so expecting the same with FirstSave.

20122013

refluxer said:

20122013 said:

May I ask what you did so you get your interest paid on the 1st of each month? as I would like to do the same please. 

You would normally need to open a fixed rate account on the 1st (and possibly even fund it on the 1st if the bank starts the term on the date of your first deposit) in order to get monthly interest paid on the first of every month.

I see, a bit risky to wait till the 1st to open the account ?  I am wondering what would be the quickest way to fund / test the account? bank transfer, direct debit? 

20122013

intalex said:

20122013 said:

May I ask what you did so you get your interest paid on the 1st of each month? as I would like to do the same please. 

It's all about timing and windows - the FirstSave account has a 10 working day window to make the first payment (and then a further 10 calendar day window for further payments).

So having opened mine today, I have until 1st December to make my first payment, and if I pay in the product's required minimum balance of £1000 on 1st December, I think the account will be opened as of that day, and so monthiversary interest payments will also be paid on 1st of each subsequent month. I will pay in more funds over the subsequent 10 calendar days, but I am expecting my interest payment to be linked to account opening which I believe will be linked to the day I will have funded it with the £1000 minimum balance.

This is what I experienced with other similar banks (some operating on the same platform), so expecting the same with FirstSave.

Ah ok, so it is not the date you made your first payment but the date you made the minimum payment that will set the interest payment date. 

BooJewels

I think with FirstSave it's a moot point, they pay monthly interest on the last business day of the month.

So in your first part month, you'll get a part payment, then the regular payments on their payment day going forwards.  In my personal (granted, limited) experience, they're the only party I've used that do it this way, rather than on the mensiversary of your official account opening.

ETA:  Just realised I still had the T&C open:

5.10 If you have selected a monthly interest payment option in your application, interest will be paid on the last day of the month or the next Business Day if the due day is not a Business Day.

refluxer

20122013 said:

refluxer said:

20122013 said:

May I ask what you did so you get your interest paid on the 1st of each month? as I would like to do the same please. 

You would normally need to open a fixed rate account on the 1st (and possibly even fund it on the 1st if the bank starts the term on the date of your first deposit) in order to get monthly interest paid on the first of every month.

I see, a bit risky to wait till the 1st to open the account ?  I am wondering what would be the quickest way to fund / test the account? bank transfer, direct debit? 

It sounds like your question has been answered in regards to First Save specifically but, in general, you'd normally fund a fixed rate account with a bank transfer and then it'll be down to how quickly they process the payment as to when it gets credited.

Some banks process payments into their accounts more or less instantly (most of the big high-street banks plus other smaller but efficient banks like Atom and Oxbury) and some take longer  - anything from 15-20 mins (eg, Cynergy) to 2-4 hours (eg. Ford, Shawbrook, Oaknorth) to possibly even the next working day.

The other thing you have to bear in mind if you're trying to get timings exact is the possibility of your bank blocking large payments to new accounts, as this can obviously lead to delays.

intalex

20122013 said:

Ah ok, so it is not the date you made your first payment but the date you made the minimum payment that will set the interest payment date. 

That I'm not 100% sure of, it's just that my first payment will be the minimum balance

BooJewels said:

I think with FirstSave it's a moot point, they pay monthly interest on the last business day of the month.

So in your first part month, you'll get a part payment, then the regular payments on their payment day going forwards.  In my personal (granted, limited) experience, they're the only party I've used that do it this way, rather than on the mensiversary of your official account opening.

ETA:  Just realised I still had the T&C open:

5.10 If you have selected a monthly interest payment option in your application, interest will be paid on the last day of the month or the next Business Day if the due day is not a Business Day.

Is this also your experience in practice? If not, could "the month" be the bespoke month from account opening date rather than a calendar month?

BooJewels

intalex said:

20122013 said:

Ah ok, so it is not the date you made your first payment but the date you made the minimum payment that will set the interest payment date. 

That I'm not 100% sure of, it's just that my first payment will be the minimum balance

BooJewels said:

I think with FirstSave it's a moot point, they pay monthly interest on the last business day of the month.

So in your first part month, you'll get a part payment, then the regular payments on their payment day going forwards.  In my personal (granted, limited) experience, they're the only party I've used that do it this way, rather than on the mensiversary of your official account opening.

ETA:  Just realised I still had the T&C open:

5.10 If you have selected a monthly interest payment option in your application, interest will be paid on the last day of the month or the next Business Day if the due day is not a Business Day.

Is this also your experience in practice? If not, could "the month" be the bespoke month from account opening date rather than a calendar month?

It's my experience in practice, after maybe 3 accounts with FirstSave - payment appears in my nominated current account usually on the first of the month (the amount you'll get is often available to see in your FirstSave account a couple of days before this).  If my account was funded mid-month, I'd expect to get half a month-ish of interest on the first of the next month, then full months of interest going forwards.  The most recent one that's already running was funded on 10th July and on 1st August and I got 21 days of interest, then a full month in September.

@refluxer - I think some of the organisations like Ford, FirstSave and building societies take a little longer to credit payments in as they're not clearing banks themselves, so your payment goes initially to someone like Barclays and then filters through to your account.

gt94sss2

DRS1 said:

intalex said:

Just opened a FirstSave 2 year bond as an option, account opened promptly without ID check, and welcome letter states initial deposit must be made within 10 working days and further deposits allowed over 10 calendar days from the initial deposit date. Can't spot it anywhere, but I would assume initial deposit may have to be the minimum balance of £1,000.

This works nicely for me to redirect proceeds from a maturing Vanquis 3-year fix, whilst giving me enough time to see what next week's budget throws up...

That is interesting.  When I looked I thought they said you would need a passport/DL to open an account.

It won't be "without an ID check".

Just that they were able to do it electronically..

refluxer

BooJewels said:

@refluxer - I think some of the organisations like Ford, FirstSave and building societies take a little longer to credit payments in as they're not clearing banks themselves, so your payment goes initially to someone like Barclays and then filters through to your account.

Yes, that's my understanding too. I think payments are sometimes processed in batches at certain times of the day too, which explains why payment times to those banks can also be a bit random but within a certain range - eg. 2, 3 or 4 hours depending on the exact time you make it.