Banks roundup feature.

Rob5342

eskbanker said:

Rob5342 said:

What contribution? It's all coming from your account.

The interest earned on the roundups.

You can still add a lot more to your savings account.

Thumbs_Up

Rob5342 said:

What contribution? It's all coming from your account.

I’m with NatWest, it works like this, you spend £1.25 on a chocolate bar the bank rounds it up and puts 75p into the digital savings account. So not only do you enjoy the chocolate bar NatWest will give you 75p. What’s not to like. Keep the savings account below £1000 and you get 3.30% . And you can add £150 a month.

 

RG2015

Rob5342 said:

I think I'm missing something here - why would banks be unhappy about you keeping more money in your account?

The Chase UK Round Up account pays a high interest rate of 5%. It can pay this amount because deposits are limited.

The only way of depositing into the Chase UK Round Up account is by making a debit card payment.

The round up to the next pound is deposited in the account.

For example a payment of £24.25 is rounded up to £25.00 in the current account and 75p goes into the 5% account.

orange-juice

I made ~ 10 x £0.01 payments per day off my Amex bill using my rbs/NatWest card for a couple of weeks to boost my digital regular saver, and thankfully didn’t hear anything from either. Have heard someone get a ticking off by chase though

k_man

Thumbs_Up said:

Rob5342 said:

What contribution? It's all coming from your account.

I’m with NatWest, it works like this, you spend £1.25 on a chocolate bar the bank rounds it up and puts 75p into the digital savings account. So not only do you enjoy the chocolate bar NatWest will give you 75p. What’s not to like. Keep the savings account below £1000 and you get 3.30% . And you can add £150 a month.

 

Are you sure NatWest give you 75p?
For most other banks the round up comes from the same current account as the initial transaction.

Have you checked your statement?

Save as you spend

With Round Ups, pay with your debit card or contactless device and we'll round up the amount to the nearest pound, sending the spare change to your savings account. It's that simple!!!

Say you spend £2.30, we'll round it up to £3.00 and send 70p from your current account to your savings account.


The benefit of roundup is drip feeding money into savings (like putting pocket change into a piggy bank/savings jar), and sometimes, as for Chase, into a higher interest saving account, that only allows round up payments.
It isn't usually deposits funded by the bank.

RG2015

k_man said:

Thumbs_Up said:

Rob5342 said:

What contribution? It's all coming from your account.

I’m with NatWest, it works like this, you spend £1.25 on a chocolate bar the bank rounds it up and puts 75p into the digital savings account. So not only do you enjoy the chocolate bar NatWest will give you 75p. What’s not to like. Keep the savings account below £1000 and you get 3.30% . And you can add £150 a month.

 

Are you sure NatWest give you 75p?
For most other banks the round up comes from the same current account as the initial transaction.

The post is perhaps poorly worded, but nobody in their right mind would think that the bank gives you the round up pennies.

Rob5342

RG2015 said:

Rob5342 said:

I think I'm missing something here - why would banks be unhappy about you keeping more money in your account?

The Chase UK Round Up account pays a high interest rate of 5%. It can pay this amount because deposits are limited.

The only way of depositing into the Chase UK Round Up account is by making a debit card payment.

The round up to the next pound is deposited in the account.

For example a payment of £24.25 is rounded up to £25.00 in the current account and 75p goes into the 5% account.

Surely they'd protect against that by having an upper limit on what the 5% gets paid on?

Rob5342

RG2015 said:

k_man said:

Thumbs_Up said:

Rob5342 said:

What contribution? It's all coming from your account.

I’m with NatWest, it works like this, you spend £1.25 on a chocolate bar the bank rounds it up and puts 75p into the digital savings account. So not only do you enjoy the chocolate bar NatWest will give you 75p. What’s not to like. Keep the savings account below £1000 and you get 3.30% . And you can add £150 a month.

 

Are you sure NatWest give you 75p?
For most other banks the round up comes from the same current account as the initial transaction.

The post is perhaps poorly worded, but nobody in their right mind would think that the bank gives you the round up pennies.

The post says Natwest give you 75p, it's not badly worded it's simply wrong.

Daliah

Rob5342 said:

RG2015 said:

Rob5342 said:

I think I'm missing something here - why would banks be unhappy about you keeping more money in your account?

The Chase UK Round Up account pays a high interest rate of 5%. It can pay this amount because deposits are limited.

The only way of depositing into the Chase UK Round Up account is by making a debit card payment.

The round up to the next pound is deposited in the account.

For example a payment of £24.25 is rounded up to £25.00 in the current account and 75p goes into the 5% account.

Surely they'd protect against that by having an upper limit on what the 5% gets paid on?

No they don't. But most people will only make a tenner or so over a year, and those who perform unnatural acts to boost their roundup balance will be pulled up and asked to stop.

RG2015

Rob5342 said:

RG2015 said:

Rob5342 said:

I think I'm missing something here - why would banks be unhappy about you keeping more money in your account?

The Chase UK Round Up account pays a high interest rate of 5%. It can pay this amount because deposits are limited.

The only way of depositing into the Chase UK Round Up account is by making a debit card payment.

The round up to the next pound is deposited in the account.

For example a payment of £24.25 is rounded up to £25.00 in the current account and 75p goes into the 5% account.

Surely they'd protect against that by having an upper limit on what the 5% gets paid on?

It’s just a gimmick to draw in customers at a relatively low cost. They can choose whatever conditions they like.