Notice Accounts

nottsphil

allegro120 said:

1spiral said:

Bridlington1 said:

OakNorth Bank 95 Day Notice Base Rate Tracker Account - Issue 2 has been launched at 5.37% The account can be opened with £1 and tracks the base rate plus a 0.12% ``spread". Oak North can decrease the spread subject to the notice period plus 14 days, so 109 days in this case.

Rate changes caused by BOE base rate changes are applied from 1st of the next calendar month.

Just a little caveat with this one. Deposits don't accrue interest on the day deposited and after the notice period, funds arrive a day later in your account so the deposit/ withdrawal period loses 2 days interest. Not sure what time of day funds hit your nominated account but if late in the day, may also mean you can't get interest for that day either.

Not such a biggie for a notice account as your funds are there for at least 95 days but a deposit today with immediate serving of notice for withdrawal would lose you about 0.11% of your AER for the amount withdrawn reducing to 0.086% if you kept it there for a month before serving notice.If a withdrawal request has been made, interest will be calculated on the total amount until, but not including the day of the withdrawal.

I've made many withdrawals from 90d notice account, they always arrived on the same day and as far as I remember very quickly if not immediately.  I don't know about weekends, never tried that, I generally avoid weekend withdrawals unless I know for sure that they will arrive on the same day.

You're going to have to explain what you mean by 'the same day' . Do you mean the 90th day, and are you counting from the day after you give the notice?

1spiral

nottsphil said:

1spiral said:

Bridlington1 said:

OakNorth Bank 95 Day Notice Base Rate Tracker Account - Issue 2 has been launched at 5.37% The account can be opened with £1 and tracks the base rate plus a 0.12% ``spread". Oak North can decrease the spread subject to the notice period plus 14 days, so 109 days in this case.

Rate changes caused by BOE base rate changes are applied from 1st of the next calendar month.

Just a little caveat with this one. Deposits don't accrue interest on the day deposited and after the notice period, funds arrive a day later in your account so the deposit/ withdrawal period loses 2 days interest. Not sure what time of day funds hit your nominated account but if late in the day, may also mean you can't get interest for that day either.

Not such a biggie for a notice account as your funds are there for at least 95 days but a deposit today with immediate serving of notice for withdrawal would lose you about 0.11% of your AER for the amount withdrawn reducing to 0.086% if you kept it there for a month before serving notice.

I've never come across a savings or bank account that states it pays interest on the day of deposit and of withdrawal. That would be expecting 366 days interest for a one year deposit for example, so what you are describing is a loss of only one day.  Maybe more if it lands on a weekend, though?
To take that example to its extreme, for an instant access  account with midnight cut off times, would you expect to be able to deposit at 23.55 tonight then withdraw at 00.05 on 3 July 2025 and get 366 days interest when your money will have only been there for 364 days and 10 minutes? 😊

Agree but Oaknorth specifically spell out that interest is calculated on the minimum balance each day and show examples. It results in a deposit today doesn't accrue interest until tomorrow. Almost every other account will pay interest on the day received unless you miss their specified cut off.

No account that I am aware of pays interest on the day funds are withdrawn however with Oaknorth, their terms state that you won't receive them until the day after they are withdrawn so a deposit today on which you serve immediate notice, will earn 94 days interest but you won't receive it until day 96.

allegro120

nottsphil said:

allegro120 said:

1spiral said:

Bridlington1 said:

OakNorth Bank 95 Day Notice Base Rate Tracker Account - Issue 2 has been launched at 5.37% The account can be opened with £1 and tracks the base rate plus a 0.12% ``spread". Oak North can decrease the spread subject to the notice period plus 14 days, so 109 days in this case.

Rate changes caused by BOE base rate changes are applied from 1st of the next calendar month.

Just a little caveat with this one. Deposits don't accrue interest on the day deposited and after the notice period, funds arrive a day later in your account so the deposit/ withdrawal period loses 2 days interest. Not sure what time of day funds hit your nominated account but if late in the day, may also mean you can't get interest for that day either.

Not such a biggie for a notice account as your funds are there for at least 95 days but a deposit today with immediate serving of notice for withdrawal would lose you about 0.11% of your AER for the amount withdrawn reducing to 0.086% if you kept it there for a month before serving notice.If a withdrawal request has been made, interest will be calculated on the total amount until, but not including the day of the withdrawal.

I've made many withdrawals from 90d notice account, they always arrived on the same day and as far as I remember very quickly if not immediately.  I don't know about weekends, never tried that, I generally avoid weekend withdrawals unless I know for sure that they will arrive on the same day.

You're going to have to explain what you mean by 'the same day' . Do you mean the 90th day, and are you counting from the day after you give the notice?

Yes, 90th Day. I meant the same day when the withdrawal was due (e.g. if it was scheduled for 1st November I get the money in my nominated bank account on 1st November). Sorry for this confusion.

premierfella

1spiral said:

nottsphil said:

1spiral said:

Bridlington1 said:

OakNorth Bank 95 Day Notice Base Rate Tracker Account - Issue 2 has been launched at 5.37% The account can be opened with £1 and tracks the base rate plus a 0.12% ``spread". Oak North can decrease the spread subject to the notice period plus 14 days, so 109 days in this case.

Rate changes caused by BOE base rate changes are applied from 1st of the next calendar month.

Just a little caveat with this one. Deposits don't accrue interest on the day deposited and after the notice period, funds arrive a day later in your account so the deposit/ withdrawal period loses 2 days interest. Not sure what time of day funds hit your nominated account but if late in the day, may also mean you can't get interest for that day either.

Not such a biggie for a notice account as your funds are there for at least 95 days but a deposit today with immediate serving of notice for withdrawal would lose you about 0.11% of your AER for the amount withdrawn reducing to 0.086% if you kept it there for a month before serving notice.

I've never come across a savings or bank account that states it pays interest on the day of deposit and of withdrawal. That would be expecting 366 days interest for a one year deposit for example, so what you are describing is a loss of only one day.  Maybe more if it lands on a weekend, though?
To take that example to its extreme, for an instant access  account with midnight cut off times, would you expect to be able to deposit at 23.55 tonight then withdraw at 00.05 on 3 July 2025 and get 366 days interest when your money will have only been there for 364 days and 10 minutes? 😊

Agree but Oaknorth specifically spell out that interest is calculated on the minimum balance each day and show examples. It results in a deposit today doesn't accrue interest until tomorrow. Almost every other account will pay interest on the day received unless you miss their specified cut off.

Quite sneaky really, as because that doesn't apply to the opening account deposit the AER will be exactly the same as for another bank which applies a policy of paying interest on all cleared deposits from the actual day of deposit. Still little more than a rounding error I suppose if the deposit is in the Oaknorth account for many months.

PowerSavingMode

allegro120 said:

Johnny-Cage said:

Rheumatoid said:

Oxbury notice Accounts down.

120 Day (that I have given notice on already):

On 24 April 2024, we wrote to you informing you that from 6 September 2024, your account's interest rate on balances above £ 1,000 will change from 5.39% Monthly Gross / 5.53% AER to 4.89% Monthly Gross / 5.00% AER.

We are writing to inform you that on 13 November 2024 your account's interest rate on balances above £ 1,000 will change again to 4.65% Monthly Gross / 4.75% AER. This further decrease in rate is in response to expected future market conditions and when it takes effect, we believe your account will continue to offer a competitive rate and great overall value.

90 Day - need to work out when to give notice (? 16/7)  :

We are writing to let you know that from 14 October 2024, your account's interest rate on balances above £ 1,000 will change from 5.14% Monthly Gross / 5.26% AER to 4.89% Monthly Gross / 5.00% AER.

No way to get the account closed any earlier due to decreased rates I guess 

This is correct, notice accounts can't be closed earlier.

I didn't think there was a fixed term for this particular account. I thought you could withdraw the full balance at any time, subject to the 90-day notice period: 

"Can I withdraw money?
YES. Subject to providing the required notice you can withdraw up to the full balance of the account."

slinger2

With the Oxbury 90 day account paying 5.00% AER from 14 October 2024, from 5.26% AER, I'm not adding to that account at the moment (in fact I've got various withdrawals lined up). Instead I've put some money into an Investec 90 day account paying 5.25% AER and with 104 days notice of rate reductions and also some into an Oxbury 6 month "bond" paying 5.25%, maturing in the new year.

Personally I'm feeling a bit maxed out with fixed rate savings but I'm thinking the 6 month bond is short enough for emergencies that might pop up.

Johnny-Cage

Oxbury 5.26% 90 day account closed will fund this years ISA allowance at Chip and the rest will decide come Oct

allegro120

slinger2 said:

With the Oxbury 90 day account paying 5.00% AER from 14 October 2024, from 5.26% AER, I'm not adding to that account at the moment (in fact I've got various withdrawals lined up). Instead I've put some money into an Investec 90 day account paying 5.25% AER and with 104 days notice of rate reductions and also some into an Oxbury 6 month "bond" paying 5.25%, maturing in the new year.

Personally I'm feeling a bit maxed out with fixed rate savings but I'm thinking the 6 month bond is short enough for emergencies that might pop up.

I'm going to close it.  I would have kept it for speculative purposes, but the £1k minimum balance for receiving interest won't work for me.  I've already given notice for 120d and probably not going to fund 90d tracker for the same reason.  I've opened NorthOak 95d tracker as an alternative (£1 minimum balance) and the rate is slightly better than Oxbury tracker. 

slinger2

allegro120 said:

slinger2 said:

With the Oxbury 90 day account paying 5.00% AER from 14 October 2024, from 5.26% AER, I'm not adding to that account at the moment (in fact I've got various withdrawals lined up). Instead I've put some money into an Investec 90 day account paying 5.25% AER and with 104 days notice of rate reductions and also some into an Oxbury 6 month "bond" paying 5.25%, maturing in the new year.

Personally I'm feeling a bit maxed out with fixed rate savings but I'm thinking the 6 month bond is short enough for emergencies that might pop up.

I'm going to close it.  I would have kept it for speculative purposes, but the £1k minimum balance for receiving interest won't work for me.  I've already given notice for 120d and probably not going to fund 90d tracker for the same reason.  I've opened NorthOak 95d tracker as an alternative (£1 minimum balance) and the rate is slightly better than Oxbury tracker. 

My trouble is that I'm trying to give myself some short-term protection from base rate changes, so trackers are not at all tempting.

nottsphil

CSB have just given about 115 days notice that their 95 day account interest rate is falling.