Notice Accounts

Expotter

I can't see any dedicated thread for Notice Accounts, so here we go.
My question for all knowledgeable people in this forum is whether anyone has any experience with Allica Bank, I currently have a Zopa smart saver account and, so far, can't fault them really, but Allica are offering 2% for 95 days notice compared to Zopa's 1.8%. Thanks for sharing your thoughts/ experiences.

refluxer

That seems like a decent rate, especially if you were to request the withdrawal immediately which would effectively make it a 3 month Fixed Rate @ 2%.

The only (small) drawback I can see is that you have to phone them to request a withdrawal (potential hassle compared with doing it online).

As you won't know what the final balance is (including interest), presumably if you simply request to withdraw the amount you deposit, then the account would be automatically closed and the interest paid out to you anyway, due to the account falling below the £10k minimum.

Expotter

 I think you're right. From their Key Product Information: "You can request a withdrawal by contacting our customer service team. We’ll then return your funds to you 95 days from that date. The 95-day notice period is based on calendar days and begins the day we receive your request. Note that, should your balance fall below our minimum deposit, we will need to close your account."
 As you said it'd effectively be a 3 month fixed rate at 2%, but with a variable rate, if that makes any sense. You could always just leave your money in, without giving notice and hopefully they'd increase the rate if base rate increases. Don't know much about Allica though, so not sure they'd keep up and remain competitive

soulsaver

Can you cancel the notice and immediately reiterate it?

PS Pity Zopa beat them to the 'Smart' name.. Smart Allica has a certain ring to it

Rudyson

refluxer said:

That seems like a decent rate, especially if you were to request the withdrawal immediately which would effectively make it a 3 month Fixed Rate @ 2%.

The only (small) drawback I can see is that you have to phone them to request a withdrawal (potential hassle compared with doing it online).

As you won't know what the final balance is (including interest), presumably if you simply request to withdraw the amount you deposit, then the account would be automatically closed and the interest paid out to you anyway, due to the account falling below the £10k minimum.

You don't have to phone them, you can do it online via secure message. I've just phoned them to check that as their T%Cs say it can be done online

janusdesign

i've got a fixed-rate account with Allica, maturing in a few weeks time, and haven't had any problems with them... in fact I once had an email replied to in 4 minutes (with an answer to my questions, not just a auto-reply - if you see what I mean).

if it were me, i'd probably stick with Zopa as they have tended to be responsive to BoE rate increases, and if the rumour of the next one being more than 0.25% is true, then I would think it very likely that Zopa would go 2% at that point (next month)... plus i'd find it more flexible (account limits, app usability etc) than having to call them.

someone might want to correct me on this, but I think until recently, Allica's fixed rate accounts weren't very competitive and were far behind the leaders - i'm not sure how quickly they would pass on any BoE rate increases or if they would go down the road of creating a new issue rather than updating rates on existing accounts.

refluxer

janusdesign said:

someone might want to correct me on this, but I think until recently, Allica's fixed rate accounts weren't very competitive and were far behind the leaders - i'm not sure how quickly they would pass on any BoE rate increases or if they would go down the road of creating a new issue rather than updating rates on existing accounts.

Yes - it could be worth bearing that in mind, especially as the next BoE meeting is in just 4 weeks time. On the plus side, at least it has the potential to increase (unlike a fixed Rate account).

Thumbs_Up

I have just opened an account with Oak North 90 days notice at 2.02 %. Monthly interest payments too which is a must have for me. What’s not to like.

wiseonesomeofthetime

Thumps the 1.85% from Zopa 🙄

Expotter

Thumbs_Up said:

I have just opened an account with Oak North 90 days notice at 2.02 %. Monthly interest payments too which is a must have for me. What’s not to like.

Did you give notice straight away? And what happens when notice is due, do they return the funds and close the account? I've never held an account with them so it'd be useful to find out how they operate.

Expotter

I was hoping someone could provide some information about Oak North. Do they increase their interest rates like Zopa or do you have to open a new account?