Notice Accounts

Rudyson

Daliah said:

Bobblehat said:

Rudyson said:

Re. leaving a small amount in. As far as I know, you can't give notice to withdraw interest that hasn't already accrued, notice on the interest has to be given separately when it accrues. If you do want the interest as well, you have to message them that you want the account closed.

Thanks Rudyson .... got your first point. The 2nd point ... that does complicate things! It would presumably mean withdrawing the original funded amount after 90 days from today (in my case the sum of the 2 deposits) and then the interest in stages 90 days after it is added each month. I'll have to ponder on whether it's worth the faff or not!

The account you can withdraw to can be any of your linked accounts. There is no limit to the number of accounts you can link. So not sure why this would complicate matters?

I am also not clear what you mean about withdrawing the interest in stages - can you explain?

Some further notes:

You cannot hold a Smartsaver as a joint account

You can deposit from linked account only.

Linked accounts must be in  the name of the Zopa account holder. In other words,

1. you cannot make deposits from your business account unless it is a sole trader account in your name - but it would be terrible mess if you mixed personal and business savings. Ask your accountant.
2. your wife cannot deposit into your Smartsaver and you can't deposit into hers

Best download the app and have a play with it yourself. I find it the easiest banking app I have ever used and I don't think it's buggy. You don't have to deposit much to play about - just a fiver or a tenner, but as above, you have to link the account first and it must be in your name. 

 

Daliah, the conversation you're quoting is about Oaknorth, not Zopa

Bobblehat

Rudyson said:

Daliah, the conversation you're quoting is about Oaknorth, not Zopa

Thanks Rudyson ... I had to do a double-take and threw in a bit of head-scratching when I first read Daliah's latest post! I appreciate that Daliah made the effort to reply even if the response was of little help!

Bobblehat

Daliah said:

.........

I am also not clear what you mean about withdrawing the interest in stages - can you explain?

Thanks for the reply Daliah, but I think you have mixed up queries from two different members, as Rudyson spotted!

I appreciate your effort though!

As to the withdrawal of the interest in stages, if you can't put notice on interest not yet credited to the OakNorth account until it is credited, then I assume the sequence for a 90 day notice account has to be ....

Make initial deposits.
Shortly after, put notice on the initial deposits and wait for it to appear 90 days later in nominated account.
Wait until the first months interest appears, and give notice on that and wait 90 days until it appears in nominated account.
Wait until the second months interest appears, and give notice on that and wait 90 days until it appears in nominated account.
On 90th Day after first notice, balance reduces by the initial deposit, so now equals the sum of 1st & 2nd months interest.
Wait until third months interest appears and give notice on that and wait 90 days until it appears in nominated account.

So ....
After   90 days approx, the balance reduces by the initial deposits.
After 120 days approx, the balance reduces by 1st months interest.
After 150 days approx, the balance reduces by 2nd months interest.
After 180 days approx, the balance reduces by 3rd months interest and the balance left equals just interest on the interest 

 ..... Welcome to the Hotel California Bank ..... as Namewithheld wittily said earlier!

Rudyson

Bobblehat said:

Daliah said:

.........

I am also not clear what you mean about withdrawing the interest in stages - can you explain?

Thanks for the reply Daliah, but I think you have mixed up queries from two different members, as Rudyson spotted!

I appreciate your effort though!

As to the withdrawal of the interest in stages, if you can't put notice on interest not yet credited to the OakNorth account until it is credited, then I assume the sequence for a 90 day notice account has to be ....

Make initial deposits.
Shortly after, put notice on the initial deposits and wait for it to appear 90 days later in nominated account.
Wait until the first months interest appears, and give notice on that and wait 90 days until it appears in nominated account.
Wait until the second months interest appears, and give notice on that and wait 90 days until it appears in nominated account.
On 90th Day after first notice, balance reduces by the initial deposit, so now equals the sum of 1st & 2nd months interest.
Wait until third months interest appears and give notice on that and wait 90 days until it appears in nominated account.

So ....
After   90 days approx, the balance reduces by the initial deposits.
After 120 days approx, the balance reduces by 1st months interest.
After 150 days approx, the balance reduces by 2nd months interest.
After 180 days approx, the balance reduces by 3rd months interest and the balance left equals just interest on the interest 

 ..... Welcome to the Hotel California Bank ..... as Namewithheld wittily said earlier!

That's as i understand it, unless you tell them you want to close the account at the end of the notice period, in which case you get all the accrued interest.

Daliah

I get me coat

Shedman

Rudyson said:

Shedman said:

NameWithheld said:

OakNorth 90 day rate now up to 2.26%. But this time they are also increasing on older issues if you are prepared to wait until 1st September 

Its really good that they're now doing that instead of having to open a new one at the higher rate and move the money from the older one across to the new one, which meant having restart the clock on the notice period.  

Also like that you can (seemingly) continue to top up the existing account but keep the same end of notice date, so effectively getting shorter and shorter period notice accounts the closer you get to the notice end date when you top up, but you get the higher rate regardless (so potentially outstripping even the best 31 / 60 day notice accounts such as Zopa 31 day boost).

"Effective from 01 Sep 2022, the interest rate on your Notice Account ending in *****xxx will increase from 2.02% AER to 2.26% AER.

We’ll apply this higher rate to your account automatically, so you don't need to do anything.

If you wish to top up your account, you can do so by sending funds from your nominated bank account to your OakNorth savings account."

I don't think you can add money to an account to give yourself a shorter notice period. Unlike Zopa. you don't give notice to turn the whole account into instant access, you give notice to withdraw an amount of money (not necessarily the whole account) in 90 days. You can continue to deposit funds at any time, and withdraw funds at any time (with 90 days notice).

Thanks.  Yep forgot it wasn't like the Zopa Booster pots...knew there had to be a flaw in my thinking.

10_66

Shedman said:
...Yep forgot it wasn't like the Zopa Booster pots...knew there had to be a flaw in my thinking.

Shedman, (re OakNorth notice) though Allica pay interest annually, you can definitely add to their 95 day account once notice has been given and, as long as notice is given to "close" the account, you can withdraw all of the funds on the original notice date.  I've had this confirmed twice by phone and have message confirmation as well.  Obviously you still wouldn't receive interest until it's due or unless you did actually close the account, but it is at least more flexible (like Zopa) in that you can continue to add to it without the faff of giving more notice within the first notice period.

Burcot

I have now opened a 90 day account with OakNorth - 2.26%.  I have previously opened an account with Investec 90 day 2.08%

It seems sensible to now close the Investec account and transfer to OakNorth or another account with around the 2.2 or 2.3%. 
My question is if I close the Investec account do I get interest for the 90 days until my money is in my nominated account. 

Burcot

I have now opened a 90 day account with OakNorth - 2.26%.  I have previously opened an account with Investec 90 day 2.08%

It seems sensible to now close the Investec account and transfer to OakNorth or another account with around the 2.2 or 2.3%. 
My question is if I close the Investec account do I get interest for the 90 days until my money is in my nominated account. 

Daliah

Burcot said:

My question is if I close the Investec account do I get interest for the 90 days until my money is in my nominated account. 

If by closing the account you mean giving notice to close it in 90 days: yes, you will be getting interest for the entire time your money was deposited with Investec. The accrued interest will be paid with the closing balance.