Notice Accounts

slinger2

jimexbox said:

slinger2 said:

Vanquis 90-day account down from 5.10% AER to 5.0% for new customers. Their other notice accounts rates may have changed too, not sure.

I open one yesterday, waiting for a letter. Very antiquated. Let's hope they honour the original rate. 

Two letters for me. Both arrived the same day.

slinger2

RCI Bank 95-day account down from 4.95% to 4.70% as of 15 Nov for new customers. 14-day notice account also down, from 4.65% to 4.55%.

I suppose those of us already with accounts will be notified of a similar reduction.

moi

VANQUIS EMAILS:

We are writing to inform you that the interest rate on your 90 Day Notice Account Issue 6 will be reduced from 5.10% to 5.00% variable, with effect from 3rd March 2025.

&

60 Day Notice Account Issue 2 will be reduced from 4.94% to 4.79% variable, with effect from 31st January 2025.

SirHugo

moi said:

VANQUIS EMAILS:

We are writing to inform you that the interest rate on your 90 Day Notice Account Issue 6 will be reduced from 5.10% to 5.00% variable, with effect from 3rd March 2025.

&

60 Day Notice Account Issue 2 will be reduced from 4.94% to 4.79% variable, with effect from 31st January 2025.

That's odd. I've also received an email from them saying 'the interest rate on your 90 Day Notice Account Issue 6 will be reduced from 4.98% to 4.89% variable, with effect from 3rd March 2025'.

I applied for the account account on the 9th November when the interest was 5.10%. I received two postal documents from them on the 13th which enabled me to login online and verify my linked account. I funded the account next day. I'm sure the interest rate said 5.10%

However I've just logged into my account and it says my interest rate is 4.98%. Yet my account is issue 6.

Am I missing something here?

UPDATE - 
I think the penny may have dropped - is my current rate showing at 4.98% because my interest frequency is Monthly?

refluxer

SirHugo said:

UPDATE - 
I think the penny may have dropped - is my current rate showing at 4.98% because my interest frequency is Monthly?

Yes, I would have thought so. While AER is useful for comparison purposes when choosing accounts, it's obviously not the actual rate applied to your account if interest is credited monthly. I have a number of accounts that pay interest monthly and state the gross figure (not AER) in online banking.

4.98% gross annually and credited monthly = 5.10% AER. There's a handy AER calculator here.

SirHugo

refluxer said:

SirHugo said:

UPDATE - 
I think the penny may have dropped - is my current rate showing at 4.98% because my interest frequency is Monthly?

Yes, I would have thought so. While AER is useful for comparison purposes when choosing accounts, it's obviously not the actual rate applied to your account if interest is credited monthly. I have a number of accounts that pay interest monthly and state the gross figure (not AER) in online banking.

4.98% gross annually and credited monthly = 5.10% AER. There's a handy AER calculator here.

Thanks for reply. Yes that must be the case - in fact I've just received a letter from them stating my interest rate is 4.98%, variable. They never state whether it is AER or gross though!
And thanks for the AER calculator link - just what I was looking for!

I also opened the DF Capital 90 Day saver the other day - slightly higher rate - 5.11% AER, but a much better online user experience. I have some savings maturing soon so I'll probably fund this rather than the Vanquis account.
I'm expecting a rate reduction any day now though.

slinger2

SirHugo said:

refluxer said:

SirHugo said:

UPDATE - 
I think the penny may have dropped - is my current rate showing at 4.98% because my interest frequency is Monthly?

Yes, I would have thought so. While AER is useful for comparison purposes when choosing accounts, it's obviously not the actual rate applied to your account if interest is credited monthly. I have a number of accounts that pay interest monthly and state the gross figure (not AER) in online banking.

4.98% gross annually and credited monthly = 5.10% AER. There's a handy AER calculator here.

Thanks for reply. Yes that must be the case - in fact I've just received a letter from them stating my interest rate is 4.98%, variable. They never state whether it is AER or gross though!
And thanks for the AER calculator link - just what I was looking for!

I also opened the DF Capital 90 Day saver the other day - slightly higher rate - 5.11% AER, but a much better online user experience. I have some savings maturing soon so I'll probably fund this rather than the Vanquis account.
I'm expecting a rate reduction any day now though.

Generally it's a good idea to open the DF Capital accounts when they're available (and tempting). A small bank, and they pull the accounts quite quickly sometimes.

guli

slinger2 said:

SirHugo said:

refluxer said:

SirHugo said:

UPDATE - 
I think the penny may have dropped - is my current rate showing at 4.98% because my interest frequency is Monthly?

Yes, I would have thought so. While AER is useful for comparison purposes when choosing accounts, it's obviously not the actual rate applied to your account if interest is credited monthly. I have a number of accounts that pay interest monthly and state the gross figure (not AER) in online banking.

4.98% gross annually and credited monthly = 5.10% AER. There's a handy AER calculator here.

Thanks for reply. Yes that must be the case - in fact I've just received a letter from them stating my interest rate is 4.98%, variable. They never state whether it is AER or gross though!
And thanks for the AER calculator link - just what I was looking for!

I also opened the DF Capital 90 Day saver the other day - slightly higher rate - 5.11% AER, but a much better online user experience. I have some savings maturing soon so I'll probably fund this rather than the Vanquis account.
I'm expecting a rate reduction any day now though.

Generally it's a good idea to open the DF Capital accounts when they're available (and tempting). A small bank, and they pull the accounts quite quickly sometimes.

I'm a little confursed with notice accounts - If, for example they give notice that the interest rate is dropping in March 2025 - when should I give notice to access
my cash in the account, and is it still the full 90 days notice I have to serve?

Many thanks

slinger2

guli said:

slinger2 said:

SirHugo said:

refluxer said:

SirHugo said:

UPDATE - 
I think the penny may have dropped - is my current rate showing at 4.98% because my interest frequency is Monthly?

Yes, I would have thought so. While AER is useful for comparison purposes when choosing accounts, it's obviously not the actual rate applied to your account if interest is credited monthly. I have a number of accounts that pay interest monthly and state the gross figure (not AER) in online banking.

4.98% gross annually and credited monthly = 5.10% AER. There's a handy AER calculator here.

Thanks for reply. Yes that must be the case - in fact I've just received a letter from them stating my interest rate is 4.98%, variable. They never state whether it is AER or gross though!
And thanks for the AER calculator link - just what I was looking for!

I also opened the DF Capital 90 Day saver the other day - slightly higher rate - 5.11% AER, but a much better online user experience. I have some savings maturing soon so I'll probably fund this rather than the Vanquis account.
I'm expecting a rate reduction any day now though.

Generally it's a good idea to open the DF Capital accounts when they're available (and tempting). A small bank, and they pull the accounts quite quickly sometimes.

I'm a little confursed with notice accounts - If, for example they give notice that the interest rate is dropping in March 2025 - when should I give notice to access
my cash in the account, and is it still the full 90 days notice I have to serve?

Many thanks

Personally I only open notice accounts where the provider has to give me more notice of a rate reduction than I have to give to withdraw. For instance they have to give you 104 days notice of a rate reduction for an account where I have to give 90 days notice. That way I have 14 days to give notice (after they've given me notice of a rate reduction), otherwise I'll be getting a lower rate in 105 days time. Of course I still have to wait 90 days for my money.

Not all providers do this. Some give you less notice but let you close the account early without penalty. It's an area where you need to read the T&Cs very carefully.

slinger2

slinger2 said:

RCI Bank 95-day account down from 4.95% to 4.70% as of 15 Nov for new customers. 14-day notice account also down, from 4.65% to 4.55%.

I suppose those of us already with accounts will be notified of a similar reduction.

Email today from RCI giving 109 days notice of a rate reduction on my account (10 Mar 2025) to 4.70%. Only got a few pence in there.