Notice Accounts

1spiral

premierfella said:

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a deposit today with immediate serving of notice for withdrawal would lose you about 0.11% of your AER for the amount withdrawn reducing to 0.086% if you kept it there for a month before serving notice.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.

Sought some clarification from Oaknorth regarding this account. They confirmed that interest does accrue from the day following their credit to the account but they were more evasive as to cut off times only saying that funds will be credited to the account by the end of the next business day at the latest. I'm rather surprised that they can't define a cut off time as per most other institutions but I assume if you transfer by FP in the morning it should arrive same day thus only losing 1 days interest.

As for withdrawals, withdrawals arrive in your account on date requested +96, that is because the date of request is deemed to be day 0 and they require 95 clear days. They also confirmed that money leaves your account and arrives same day so no loss of interest due to cash drag at the end although again, they wouldn't commit to what time of day they process it.

It's also worth adding that because of the way they calculate interest, interest payments themselves will not be eligible to accrue interest until the day after they are received.

allegro120

1spiral said:

premierfella said:

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.

Sought some clarification from Oaknorth regarding this account. They confirmed that interest does accrue from the day following their credit to the account but they were more evasive as to cut off times only saying that funds will be credited to the account by the end of the next business day at the latest. I'm rather surprised that they can't define a cut off time as per most other institutions but I assume if you transfer by FP in the morning it should arrive same day thus only losing 1 days interest.

As for withdrawals, withdrawals arrive in your account on date requested +96, that is because the date of request is deemed to be day 0 and they require 95 clear days. They also confirmed that money leaves your account and arrives same day so no loss of interest due to cash drag at the end although again, they wouldn't commit to what time of day they process it.

It's also worth adding that because of the way they calculate interest, interest payments themselves will not be eligible to accrue interest until the day after they are received.

Can't remember the exact timing for FP but they always arrived imminently in my experience.  Can't comment about the evenings because I always do it in the mornings.  You can also use OB for depositing, I guess that should work 24/7.

slinger2

Shawbrook reducing their 45-day interest rate (issue 14) from 5.16% AER to 4.75% as from 13 Sept 2024. Personally I'll probably close it. Issue 15 is now available at 4.75%.

Rheumatoid

Oxbury 90 day notice given today.

Bridlington1

Bridlington1 said:

I've just noticed Prosper are offering a 5.6% 365 day notice account which tracks 0.35% above the base rate via the This is Money website. They also appear to have a 180 day notice tracker at 5.45%. The accounts require a minimum balance of £15k. See:
https://www.prosper.co.uk/savings/akoni-santander-international-365-day-notice-tracker?utm_source=this_is_money&utm_medium=website&utm_campaign=notice_account

Prosper 365 day notice account set to go NLA on Friday 27th July.

BreakingGlass

slinger2 said:

Shawbrook reducing their 45-day interest rate (issue 14) from 5.16% AER to 4.75% as from 13 Sept 2024. Personally I'll probably close it. Issue 15 is now available at 4.75%.

45 days prior to 13 Sep is this coming Tuesday 30 Jul.  I am tempted to wait until BoE MPC meets two days later (1 Aug), and then make a decision on giving notice (or closure) of my Shawbrook Issue 14. 4.75% may be an OK rate come September.

slinger2

BreakingGlass said:

slinger2 said:

Shawbrook reducing their 45-day interest rate (issue 14) from 5.16% AER to 4.75% as from 13 Sept 2024. Personally I'll probably close it. Issue 15 is now available at 4.75%.

45 days prior to 13 Sep is this coming Tuesday 30 Jul.  I am tempted to wait until BoE MPC meets two days later (1 Aug), and then make a decision on giving notice (or closure) of my Shawbrook Issue 14. 4.75% may be an OK rate come September.

I have given notice of closure, but that's partly because I've not been using this account much anyway. The Investec 90-day account paying 5.25% AER (minimum £5k) seems more tempting for me at the moment. 104 days notice of a rate reduction, which I haven't received yet.

BreakingGlass

slinger2 said:

BreakingGlass said:

slinger2 said:

Shawbrook reducing their 45-day interest rate (issue 14) from 5.16% AER to 4.75% as from 13 Sept 2024. Personally I'll probably close it. Issue 15 is now available at 4.75%.

45 days prior to 13 Sep is this coming Tuesday 30 Jul.  I am tempted to wait until BoE MPC meets two days later (1 Aug), and then make a decision on giving notice (or closure) of my Shawbrook Issue 14. 4.75% may be an OK rate come September.

I have given notice of closure, but that's partly because I've not been using this account much anyway. The Investec 90-day account paying 5.25% AER (minimum £5k) seems more tempting for me at the moment. 104 days notice of a rate reduction, which I haven't received yet.

I had to check my spreadsheet, but I've already got the Investec 90-day and it's nearly 'full', so I'll have another look next Thursday.  Looking at the maths, with £60k in Shawbrook, each month where the interest rate is 0.25% 'below par' I will lose about £12.50, so it's not the end of the world if I don't withdraw on 13 Sep.

slinger2

BreakingGlass said:

slinger2 said:

BreakingGlass said:

slinger2 said:

Shawbrook reducing their 45-day interest rate (issue 14) from 5.16% AER to 4.75% as from 13 Sept 2024. Personally I'll probably close it. Issue 15 is now available at 4.75%.

45 days prior to 13 Sep is this coming Tuesday 30 Jul.  I am tempted to wait until BoE MPC meets two days later (1 Aug), and then make a decision on giving notice (or closure) of my Shawbrook Issue 14. 4.75% may be an OK rate come September.

I have given notice of closure, but that's partly because I've not been using this account much anyway. The Investec 90-day account paying 5.25% AER (minimum £5k) seems more tempting for me at the moment. 104 days notice of a rate reduction, which I haven't received yet.

I had to check my spreadsheet, but I've already got the Investec 90-day and it's nearly 'full', so I'll have another look next Thursday.  Looking at the maths, with £60k in Shawbrook, each month where the interest rate is 0.25% 'below par' I will lose about £12.50, so it's not the end of the world if I don't withdraw on 13 Sep.

Yes, these small interest rate differences on variable rate accounts are generally pretty unimportant. The big choices are between savings and investments and between fixed and variable rates.

Silverbullet036

I put notice in last week for the Shawbrook 45 day , if the Vanquis 60 stays at 5.30% then it can all go in there