The New Top Easy Access Savings Discussion Area

ab56

To add to Cupar Lad above receiving interest in March could mess up people's calculations, attempting to keep below £1000 (or £500) savings interest in a tax year.

wiseonesomeofthetime

https://forums.moneysavingexpert.com/discussion/comment/82116382#Comment_82116382

Yeah, ditched mine a few months ago for the same reason.

ColdIron

https://forums.moneysavingexpert.com/discussion/comment/82116700#Comment_82116700

Re 2. It pays the interest on two occasions. The 1 year fixed bonus rate, currently 3.48%, once on the anniversary of account opening and then it's gone. The SVR, currently 1.05%, every March 31st

It also pays any accrued interest of either type instantly on account closure. I always close the account after the bonus is paid (or a better one turns up) as there is no point in keeping the account without it

They won't diddle you

SnowMan

https://forums.moneysavingexpert.com/discussion/comment/82116700#Comment_82116700

You always get the 4.53% AER over the first 12 months (well until they change the rate of course). No interest is forfeited.

But in terms of when it is actually paid, and assuming the rate doesn't change for simplicity of explanation, they pay interest at 1.05%pa, the standard rate, on 31st March for the period from opening the account (now) to 31st March. Think of that as a down-payment on the total interest accrued at that point of 4.53%pa up to then. And then if you keep the account until the anniversary of opening you get a year's bonus interest (3.48% currently) paid then. At which point you will close the account because the rate is rubbish without the bonus so on closure you also get 1.05%pa from 31st March to closure. So overall you've got 4.53% AER for the full year.

If you close the account before 31st March you get the 4.53%pa paid on closure. And if you close the account between 1st April and the anniversary of opening you get 4.53%pa from opening to closure less the 'down-payment' of interest paid on 31st March.

Freedommm

After almost a week of applying for First Direct account, I received an email informing me that they are under an unusually high load of applications and are working on them!

Tesco - still zero communication from them since I appied a few days ago.

Oxbury - rejected, no explanation given.