Pay Interest Monthly vs Yearly if withdrawing in 5 months time?

safara

Hi All,

Sorry for the silly question but - I have some money that I would like to be earning some interest on for a few months before then using it towards a house purchase.

The pay Interest Monthly I can understand. Paid monthly if I withdraw in 3 months time, I have had 3 months of interest paid.

What about the Paid Yearly? If I open an easy access Paid Yearly account, deposit an amount, then withdraw in 5 months time - no interest added at all as the amount has not been there for more than 1 year? I can just withdraw the origional sum?

Is that how it works?

Cheers

ForumUser7

safara said:

Hi All,

Sorry for the silly question but - I have some money that I would like to be earning some interest on for a few months before then using it towards a house purchase.

The pay Interest Monthly I can understand. Paid monthly if I withdraw in 3 months time, I have had 3 months of interest paid.

What about the Paid Yearly? If I open an easy access Paid Yearly account, deposit an amount, then withdraw in 5 months time - no interest added at all as the amount has not been there for more than 1 year? I can just withdraw the origional sum?

Is that how it works?

Cheers

If paid yearly, on most (if not all accounts) you would get the interest accrued to date, paid upon closure - as interest is usually calculated daily. If you wanted to be absolutely sure, you could ask the provider but it should be fine.

Bigwheels1111

Are we talking about 5k or 100k.
For almost no hassle go with Chip easy access 4.21%.
Near instant deposits and withdrawals.

safara

Bigwheels1111 said:

Are we talking about 5k or 100k.
For almost no hassle go with Chip easy access 4.21%.
Near instant deposits and withdrawals.

Cheers Big wheels. It would be more than the 85K protected by the FSCS so would be after a more than 1 of these saving accounts.I opened a Chip one and have put some in that, but now looking for another and wondering the above

Cheers for the info ForumUser7 - that does make sense

badmemory

You would need to be careful about the penalty for withdrawing before the end of the term.

Bigwheels1111

Best easy access today.
https://moneyfactscompare.co.uk/savings-accounts/easy-access-savings-accounts/?quick-links-first=false
Tandem is not on the list, but easy deposits and withdrawals 4.1%
Fixed rate, click rate order.
https://moneyfactscompare.co.uk/savings-accounts/fixed-rate-bonds/?quick-links-first=false

ForumUser7

Bigwheels1111 said:

Best easy access today.
https://moneyfactscompare.co.uk/savings-accounts/easy-access-savings-accounts/?quick-links-first=false
Tandem is not on the list, but easy deposits and withdrawals 4.1%
Fixed rate, click rate order.
https://moneyfactscompare.co.uk/savings-accounts/fixed-rate-bonds/?quick-links-first=false

Tandem is on the list but at 3.75% due to the ‘bonus’

london21

ForumUser7 said:

Bigwheels1111 said:

Best easy access today.
https://moneyfactscompare.co.uk/savings-accounts/easy-access-savings-accounts/?quick-links-first=false
Tandem is not on the list, but easy deposits and withdrawals 4.1%
Fixed rate, click rate order.
https://moneyfactscompare.co.uk/savings-accounts/fixed-rate-bonds/?quick-links-first=false

Tandem is on the list but at 3.75% due to the ‘bonus’

How does the bonus work opened tanden says 3.75%

Bigwheels1111

london21 said:

ForumUser7 said:

Bigwheels1111 said:

Best easy access today.
https://moneyfactscompare.co.uk/savings-accounts/easy-access-savings-accounts/?quick-links-first=false
Tandem is not on the list, but easy deposits and withdrawals 4.1%
Fixed rate, click rate order.
https://moneyfactscompare.co.uk/savings-accounts/fixed-rate-bonds/?quick-links-first=false

Tandem is on the list but at 3.75% due to the ‘bonus’

How does the bonus work opened tanden says 3.75%

I can’t find the email that told me how to apply the top up.
Just call them, that’s what I did.
After you have topped up the bonus it will auto apply next time.

london21

Bigwheels1111 said:

london21 said:

ForumUser7 said:

Bigwheels1111 said:

Best easy access today.
https://moneyfactscompare.co.uk/savings-accounts/easy-access-savings-accounts/?quick-links-first=false
Tandem is not on the list, but easy deposits and withdrawals 4.1%
Fixed rate, click rate order.
https://moneyfactscompare.co.uk/savings-accounts/fixed-rate-bonds/?quick-links-first=false

Tandem is on the list but at 3.75% due to the ‘bonus’

How does the bonus work opened tanden says 3.75%

I can’t find the email that told me how to apply the top up.
Just call them, that’s what I did.
After you have topped up the bonus it will auto apply next time.

Thanks searched online there is a top up option after selecting says will be valid for 1 year. 

Wotulookinat

Bigwheels1111 said:

Are we talking about 5k or 100k.
For almost no hassle go with Chip easy access 4.21%.
Near instant deposits and withdrawals.

This is interesting to me also as I am about to withdraw £120k from mine and my wifes s&s ISA's to pay for a property refurbishment and need somewhere to park the funds in the short term.

The money is currently invested 100% in equities and the builder has just started the job which will take around 5-6 months. I want to transfer the funds into cash savings this week to eliminate volatility which I will then draw on to pay for materials and labour as the work progresses. If we open an account each and split the pot we will stay within the £85k protection.

Chip easy access sounds perfect, if I've understood the details, but I've read a few posts on here where people have had problems transferring funds and ended up with money stuck in limbo etc and are then faced with hassle trying to sort it all out. Question is, does Chip work as it should or is it all very clunky?