Is It Worth Moving From Chase at 1.5% to Virgin M Plus at 1.56%

RG2015

@uk1 , Very interesting thoughts, and for me the word irresistible stands out.

Some time back it was Marcus, then Virgin Money, then Chase UK, and now VM again.

To be fair though, 1.55% is not irresistible, but definitely appealing. Also, for the OP, already having a VM account makes a big difference.

Ballard

On the face of it this is a no-brainer. £15 extra money for a year just for making a transfer. I personally wouldn’t bother though.

I don’t have a VM account and I don’t consider it worth opening one for this but even if I did, I like the convenience of being able to transfer savings to my current account in a few seconds (there have been reports of slight delays, though) and then spending on my debit card and getting the 1% cash back that they currently offer. 

If you decide to move for the higher rate then go for it. It is the logical thing to do but don’t fall into obsession over it. £15 extra for virtually no work is good but when push comes to shove it’s not going to change your life.

Wheres_My_Cashback

scoot65 said:

I've recently become aware that Virgin have increased the rate on their M Plus savings account.

Would it be worth transferring £25k from Chase's 1.5% Saver Account to Virgin Money M Plus at 1.56% ?  .... or would the increase be minuscule? 

 

Yes, move it, but not until Monday as it won't clear with VM over the weekend.

uk1

RG2015 said:

@uk1 , Very interesting thoughts, and for me the word irresistible stands out.

Some time back it was Marcus, then Virgin Money, then Chase UK, and now VM again.

To be fair though, 1.55% is not irresistible, but definitely appealing. Also, for the OP, already having a VM account makes a big difference.

Thanks,

Sometimes fairly basic things can be overlooked in the excitement of it all.

For example switching £25k from Chase to the Virgin M account will earn you £15 in a year.  But the extra £15 and all of the other interest you are earning will only earn interest of 0.75%.  However, although it would take a little longer, you would have earned compound interest of 1.5% on all of it if you had simply not faffed around and left all the cash in Chase. 

It begs the question if you do move to Virgin shouldn't you regularly be switching back ALL of  the interest you earn to Chase in the opposite way so everything over £25k earn the higher rate of  compound interest?

This game would send me around the bend

Jeff

kaMelo

Wheres_My_Cashback said:

scoot65 said:

I've recently become aware that Virgin have increased the rate on their M Plus savings account.

Would it be worth transferring £25k from Chase's 1.5% Saver Account to Virgin Money M Plus at 1.56% ?  .... or would the increase be minuscule? 

 

Yes, move it, but not until Monday as it won't clear with VM over the weekend.

It should credit instantly with Virgin whatever day it is..

ZeroSum

Maple08 said:

I'm valuing Chase a lot higher due to being able to split the savings accounts into separate accounts. I don't know any other bank other than perhaps Monzo who allow this feature. I can save up for a holiday and other stuff at the same time, and don't need to do mental maths or make notes on what's going where.

Virgin does allow the savings account into separate pots (although the software is buggy if you transfer between the pots rather than the unallocated fund) but unlike chase they're not an account with its own  account number

scoot65

OP here. Thanks for the replies.

I wouldn't normally go chasing minuscule % increases. It's just that as I already had a empty VM account I thought I could utilise that option. 
I hadn't thought about the compounding interest issue (I would move the monthly interest and put in into the Chase account).

Alternatively, I suppose I could just order one less pizza/chinese/indian takeaway and that'll put me in the same position financially.... 

uk1

scoot65 said:

OP here. Thanks for the replies.

I wouldn't normally go chasing minuscule % increases. It's just that as I already had a empty VM account I thought I could utilise that option. 
I hadn't thought about the compounding interest issue (I would move the monthly interest and put in into the Chase account).

Alternatively, I suppose I could just order one less pizza/chinese/indian takeaway and that'll put me in the same position financially.... 

My way of looking at these things is if when I reached my natural end, is there likely to be £15 left in my bank account and with those flashes back over my life would it have seemed  like a worthwhile use of my time today in pursuing it. Or would I have regretted all the time I’d wasted doing unimportant things and perhaps should I have used the time more usefully in doing what I am best at ie being bone idle.

RG2015

scoot65 said:

OP here. Thanks for the replies.

I wouldn't normally go chasing minuscule % increases. It's just that as I already had a empty VM account I thought I could utilise that option. 
I hadn't thought about the compounding interest issue (I would move the monthly interest and put in into the Chase account).

Alternatively, I suppose I could just order one less pizza/chinese/indian takeaway and that'll put me in the same position financially.... 

Another astute observation. One less pizza.

But what if you transferred to VM and had one less pizza? You're £30 up.

Recently, I suddenly realised that the word saving for me had just meant putting money in a bank account to earn interest.

I had forgotten that saving really just means not spending.

PS With the reported delays in accessing money recently, I now have some in Chase and some in VM.

uk1

RG2015 said:

scoot65 said:

OP here. Thanks for the replies.

I wouldn't normally go chasing minuscule % increases. It's just that as I already had a empty VM account I thought I could utilise that option. 
I hadn't thought about the compounding interest issue (I would move the monthly interest and put in into the Chase account).

Alternatively, I suppose I could just order one less pizza/chinese/indian takeaway and that'll put me in the same position financially.... 

Another astute observation. One less pizza.

But what if you transferred to VM and had one less pizza? You're £30 up.

Recently, I suddenly realised that the word saving for me had just meant putting money in a bank account to earn interest.

I had forgotten that saving really just means not spending.

An obsession you might therefore consider acquiring is learning the very elusive art of making extraordinary pizza from scratch at home.  However it does become extremely addictive and can be expensive if it takes over.