Notice Accounts

Burcot

Thank you, Daliah. 

Expotter

I think the time has come to do a recap here and see where we are at the moment with 90-95 days Notice Accounts (I've chosen this period as it seems to be the best value at the moment, in my opinion). I'm going to try to compile a list of the top rate accounts. Please don't quote me on it though and always do your own research.

As of 8/9/22, 12:50 PM  New No1

1. Oak North Bank Notice Savings Account. 90 Day. 2.31%, paid Monthly. Min £1

2. DF Capital 90 Day Notice Account (Issue 1) 2.30%, paid Monthly. Min £1k

3. Allica Bank 95-Day Notice Personal Savings Account (Issue 1) 2.26%, paid on Anniversary. Min £10k

4. Charter Savings Bank 95 Day Notice - Issue 48. 2.25%, paid on Anniversary or Monthly. Min £5k

=4. Close Brothers Savings 95 Day Notice Account (Issue 13). 2.25%, paid Yearly. Min £10k

=4. Mansfield BS Postal Savings 90 Day Notice (6th Issue). 2.25%, paid yearly. Min £1k. Postal Only.
 
7. Gatehouse Bank 95 Day Notice Account. 2.20%, paid on Anniversary or Monthly. Min £500

I'll leave it there for now, do we need to add a few more? What would be really useful is if people could comment on their own experiences managing these accounts, in terms of ease of opening and use, also on how good they are at passing on interest rate rises. Maybe we could find a way of giving them our own service rating kind of score. Suggestions are welcome.

Disclosure: I'm not committing to anything here and I'm still rather new to this Forum, so please just look at this as information only.

soulsaver

Links would be good ... more work but not so much if people provided them when reporting though.

I've avoided the 'ease of opening' in the EA thread. If you want to discuss the rationale, suggest we start a new thread as it will run ....

StayinAlive

I've just opened a OakNorth 90 day Notice. For anyone interested, it was a pretty seemless procedure - all done through their web site. In general it seems to be that, with those banks which calculate interest daily, it is based on the lowest balance during the day. For example, if you deposited two £10000 tranches on day 1 then the first days interest would be based on £10000 (that being the lowest balance of the day) and the second days interest based on £20000 (assuming no other deposits.)

At OakNorth's suggestion I did a £1 "test" payment first before making the substantial intended deposit after confirmation of receipt.

I am now beginning to wonder if I have lost out on a days interest because, of course, I will have had a £1 account balance at some point during the day. Any thoughts on this?

RG2015

StayinAlive said:

I've just opened a OakNorth 90 day Notice. For anyone interested, it was a pretty seemless procedure - all done through their web site. In general it seems to be that, with those banks which calculate interest daily, it is based on the lowest balance during the day. For example, if you deposited two £10000 tranches on day 1 then the first days interest would be based on £10000 (that being the lowest balance of the day) and the second days interest based on £20000 (assuming no other deposits.)

At OakNorth's suggestion I did a £1 "test" payment first before making the substantial intended deposit after confirmation of receipt.

I am now beginning to wonder if I have lost out on a days interest because, of course, I will have had a £1 account balance at some point during the day. Any thoughts on this?

Yes, you will have lost a day's interest on anything above £1 deposited on the same day. How did OakNorth suggest doing a £1 test? I did not see that.

You will see the daily interest accrued every day and also added on the 1st of every month.

Finally, you also need to give 90 days notice to withdraw the interest. For example the interest added on 1st October 2022 can not be withdrawn until 1st January 2023. Apparently you can get the interest earlier if you give notice to close the account. 

SJMALBA

No email from OakNorth this time, so, presumably, unlike the last time, they won't be applying the new rate to existing accounts?

In which case, if you wish to take advantage of the new rate, you will have to open another new account, and transfer from existing account (which cancels any existing notice given)?

RG2015

OakNorth increased my 90 day rate from 2.21% to 2.26% on 1st September. Can I expect it to increase to 2.31% on 1st October?

StayinAlive

RG2015 said:

Yes, you will have lost a day's interest on anything above £1 deposited on the same day. How did OakNorth suggest doing a £1 test? I did not see that.

Under FAQs on "Confirmation of Payee" Scheme

"We recommend you double check the account number and sort code before agreeing to transfer the funds to your OakNorth accounts. If you wish, you can send a ₤1 payment to the Account as a test. Once you see the ₤1 in your account, you can then send the rest of the intended deposit amount to us."

refluxer

SJMALBA said:

No email from OakNorth this time, so, presumably, unlike the last time, they won't be applying the new rate to existing accounts?

It doesn't look like it at the moment - at least I haven't had an email so far yet either. Did the rise they applied to existing accounts last time come before or after the higher rate became available to new applications though ? I've a feeling it was after and this latest rate increase has only just been offered AFAIK, so there may still be time for this to occur.

SJMALBA said:

In which case, if you wish to take advantage of the new rate, you will have to open another new account, and transfer from existing account (which cancels any existing notice given)?

Yes, I believe that is an option. For perspective, you'll gain around 42p/month for every £10k saved by doing so. I didn't bother to do that last time and the new rate ended up being applied to my existing account anyway.

SJMALBA

refluxer said:

SJMALBA said:

No email from OakNorth this time, so, presumably, unlike the last time, they won't be applying the new rate to existing accounts?

It doesn't look like it at the moment - at least I haven't had an email so far yet either. Did the rise they applied to existing accounts last time come before or after the higher rate became available to new applications though ? I've a feeling it was after and this latest rate increase has only just been offered AFAIK, so there may still be time for this to occur.

SJMALBA said:

In which case, if you wish to take advantage of the new rate, you will have to open another new account, and transfer from existing account (which cancels any existing notice given)?

Yes, I believe that is an option. For perspective, you'll gain around 42p/month for every £10k saved by doing so. I didn't bother to do that last time and the new rate ended up being applied to my existing account anyway.

IIRC correctly (emphasis on 'If'), the application of the increase was 7 days after the new account became available; the notification of the increase came around the same time as the new account launch?