The New Top Easy Access Savings Discussion Area

13zero8

KevinG said:

13zero8 said:

Someone help me understand this please because the math ain't mathing.... 

In preparation of Atom's rate drop on the 22nd, I'm about to start emptying my reward saver today as interest was paid this morning, therefore it's day 1 of my monthly period. 

Just before confirming the transfer a message pops up saying... "Rate will drop from 4.6% to 2.5% for this month, you will miss out on £263 of interest".

Based on £91k, how are they calculating missed interest of £263? By my calcs, a loss of 2% interest for a full month should be about £150.

It doesn't matter because the rates will be going down in a week and I'm moving the money anyway, but just wondering if I'm misunderstanding something about the loss of interest on this account. 

I agree, I can't see any way that their figure is correct. 

I've worked it out, and in hindsight it's pretty obvious and makes sense...

The figure they quote for missed interest is one month's interest you'd earn at 4.6% on your balance with no withdrawal, minus one month's interest you'd earn at 2.5% on the lower balance due to withdrawing. 

clairec666

13zero8 said:

KevinG said:

13zero8 said:

Someone help me understand this please because the math ain't mathing.... 

In preparation of Atom's rate drop on the 22nd, I'm about to start emptying my reward saver today as interest was paid this morning, therefore it's day 1 of my monthly period. 

Just before confirming the transfer a message pops up saying... "Rate will drop from 4.6% to 2.5% for this month, you will miss out on £263 of interest".

Based on £91k, how are they calculating missed interest of £263? By my calcs, a loss of 2% interest for a full month should be about £150.

It doesn't matter because the rates will be going down in a week and I'm moving the money anyway, but just wondering if I'm misunderstanding something about the loss of interest on this account. 

I agree, I can't see any way that their figure is correct. 

I've worked it out, and in hindsight it's pretty obvious and makes sense...

The figure they quote for missed interest is one month's interest you'd earn at 4.6% on your balance with no withdrawal, minus one month's interest you'd earn at 2.5% on the lower balance due to withdrawing. 

Yes, it depends on how much you're withdrawing. Is it £50000 by any chance?
The difference between 4.6% of £91000 for one month and 2.5% of £41000 for one month is pretty close to £263.

KevinG

clairec666 said:

13zero8 said:

KevinG said:

13zero8 said:

Someone help me understand this please because the math ain't mathing.... 

In preparation of Atom's rate drop on the 22nd, I'm about to start emptying my reward saver today as interest was paid this morning, therefore it's day 1 of my monthly period. 

Just before confirming the transfer a message pops up saying... "Rate will drop from 4.6% to 2.5% for this month, you will miss out on £263 of interest".

Based on £91k, how are they calculating missed interest of £263? By my calcs, a loss of 2% interest for a full month should be about £150.

It doesn't matter because the rates will be going down in a week and I'm moving the money anyway, but just wondering if I'm misunderstanding something about the loss of interest on this account. 

I agree, I can't see any way that their figure is correct. 

I've worked it out, and in hindsight it's pretty obvious and makes sense...

The figure they quote for missed interest is one month's interest you'd earn at 4.6% on your balance with no withdrawal, minus one month's interest you'd earn at 2.5% on the lower balance due to withdrawing. 

Yes, it depends on how much you're withdrawing. Is it £50000 by any chance?
The difference between 4.6% of £91000 for one month and 2.5% of £41000 for one month is pretty close to £263.

I had assumed the whole amount (or close to it) was being withdrawn, which is the sensible thing to do the way the account works.

monkey-fingers

Advice needed.
I have around £47k to invest that I possibly need to live off for the next year, so need easy access. I'm currently not working, but that might change, so it might sit in savings forever!

I'm a bit wary about opening another Current Account with Chase (I already have 3), but it seems to me that putting £20k into Trading212 and £28k into Chase is currently the best option.

Any better suggestions?

13zero8

clairec666 said:

13zero8 said:

KevinG said:

13zero8 said:

Someone help me understand this please because the math ain't mathing.... 

In preparation of Atom's rate drop on the 22nd, I'm about to start emptying my reward saver today as interest was paid this morning, therefore it's day 1 of my monthly period. 

Just before confirming the transfer a message pops up saying... "Rate will drop from 4.6% to 2.5% for this month, you will miss out on £263 of interest".

Based on £91k, how are they calculating missed interest of £263? By my calcs, a loss of 2% interest for a full month should be about £150.

It doesn't matter because the rates will be going down in a week and I'm moving the money anyway, but just wondering if I'm misunderstanding something about the loss of interest on this account. 

I agree, I can't see any way that their figure is correct. 

I've worked it out, and in hindsight it's pretty obvious and makes sense...

The figure they quote for missed interest is one month's interest you'd earn at 4.6% on your balance with no withdrawal, minus one month's interest you'd earn at 2.5% on the lower balance due to withdrawing. 

Yes, it depends on how much you're withdrawing. Is it £50000 by any chance?
The difference between 4.6% of £91000 for one month and 2.5% of £41000 for one month is pretty close to £263.

Yep, £50k. Silly oversight not taking into account the balance would be lower! 

13zero8

KevinG said:

clairec666 said:

13zero8 said:

KevinG said:

13zero8 said:

Someone help me understand this please because the math ain't mathing.... 

In preparation of Atom's rate drop on the 22nd, I'm about to start emptying my reward saver today as interest was paid this morning, therefore it's day 1 of my monthly period. 

Just before confirming the transfer a message pops up saying... "Rate will drop from 4.6% to 2.5% for this month, you will miss out on £263 of interest".

Based on £91k, how are they calculating missed interest of £263? By my calcs, a loss of 2% interest for a full month should be about £150.

It doesn't matter because the rates will be going down in a week and I'm moving the money anyway, but just wondering if I'm misunderstanding something about the loss of interest on this account. 

I agree, I can't see any way that their figure is correct. 

I've worked it out, and in hindsight it's pretty obvious and makes sense...

The figure they quote for missed interest is one month's interest you'd earn at 4.6% on your balance with no withdrawal, minus one month's interest you'd earn at 2.5% on the lower balance due to withdrawing. 

Yes, it depends on how much you're withdrawing. Is it £50000 by any chance?
The difference between 4.6% of £91000 for one month and 2.5% of £41000 for one month is pretty close to £263.

I had assumed the whole amount (or close to it) was being withdrawn, which is the sensible thing to do the way the account works.

I'll be withdrawing the remaining balance tomorrow. Didn't want to withdraw the full 91k in one day because my nominated account has a daily 50k transfer limit. 

refluxer

13zero8 said:

I'll be withdrawing the remaining balance tomorrow. Didn't want to withdraw the full 91k in one day because my nominated account has a daily 50k transfer limit. 

Daily transfer limits would normally apply to withdrawals from that account, not deposits ?

BestSeagull

refluxer said:

13zero8 said:

I'll be withdrawing the remaining balance tomorrow. Didn't want to withdraw the full 91k in one day because my nominated account has a daily 50k transfer limit. 

Daily transfer limits would normally apply to withdrawals from that account, not deposits ?

Yes, exactly. If more than £50k was deposited, the amount over wouldn't be able to be transferred out until the following day and would be earning no/low interest until then.

friolento

monkey-fingers said:

Advice needed.
I have around £47k to invest that I possibly need to live off for the next year, so need easy access. I'm currently not working, but that might change, so it might sit in savings forever!

I'm a bit wary about opening another Current Account with Chase (I already have 3), but it seems to me that putting £20k into Trading212 and £28k into Chase is currently the best option.

Any better suggestions?

If you need access to your money in the next 5-7 years, you are talking about saving, not investing. As you are not likely to need all your money at once, you might be able to fix some of it for 3, 6, 12 etc months. There is a huge range of savings accounts, all FSCS protected, and most with online/app access https://moneyfactscompare.co.uk/savings-accounts/

13zero8

refluxer said:

13zero8 said:

I'll be withdrawing the remaining balance tomorrow. Didn't want to withdraw the full 91k in one day because my nominated account has a daily 50k transfer limit. 

Daily transfer limits would normally apply to withdrawals from that account, not deposits ?

I know I made a stupid error in my interest calc, but I'm not so stupid that I don't know that 😉

Bearing in mind the whole point is to move money into a higher interest account, and this requires bouncing the money off a nominated account.... 

Correct, I could have withdrawn from Atom (and successfully received in my nominated account) the full 91k in one go, but as my nominated account has a daily PAYMENT limit of 50k, I wouldn't have been able to transfer (on the same day) more than 50k of those received funds into the higher rate savings account I want to move the money into, so I decided to split it and withdraw over two days.

Please don't tell me I've got that wrong too and have been wasting years of my life making multiple times the number of transfers I needed to... 😁