Beware Atom Instant Saver Reward!

arry0507

Please note that monthly interest paid on this account (currently 4.85% AER @ 8th November 2024) is paid back into the saver and NOT into your connected bank account. 
If you want access to this interest (leaving your savings amount untouched), you have to make a withdrawal - in which case your interest rate drops to 3.25% for the rest of the month.
So if you are depending on the interest to supplement your income each month, the rate is effectively 3.25%. Easily beaten by many other savings accounts.

masonic

This is normally the case for non-fixed term savings accounts. Some have pay-away options, but it is not the norm.

S_uk

It does state in the product summary box:

All interest is paid gross and will be added to your account.

brucefan_2

It's very clear in the product information what the conditions are. 

It's mentioned twice in fact, quite unambiguously, on the 'Instant Saver' screen in the app.

ToastLady

Probably best to make withdrawal on last day of the month then, only losing interest for one day if you still want to use them.

Dazed_and_C0nfused

ToastLady said:

Probably best to make withdrawal on last day of the month then, only losing interest for one day if you still want to use them.

Don't follow your logic there, it looks to me like you would still revert to the standard Instant Saver rate for the entire month.

slinger2

Dazed_and_C0nfused said:

ToastLady said:

Probably best to make withdrawal on last day of the month then, only losing interest for one day if you still want to use them.

Don't follow your logic there, it looks to me like you would still revert to the standard Instant Saver rate for the entire month.

Indeed. "When you withdraw from your Saver Reward, you’ll receive the lower withdrawal rate when your interest is calculated and paid at the end of the monthly interest period. If you withdraw mid-month, your interest will be calculated at the Withdrawal rate for the whole monthly interest period. You can check your app or our Saver Reward page for the latest rates." Not clear to me whether this is a calendar month or an "anniversary" type month.

S_uk

I was also a bit confused at first with this account, once you make a withdrawal does the lower withdrawal interest rate apply for that entire account month, or is it applied only to the period after the first withdrawal up until the start of the next account month? I noticed these two statements on their product page:

- The Reward rate of interest is paid in any month where a withdrawal is not made and the account is not closed.

- If you do need to withdraw, you can still access your cash instantly but you’ll get a lower Withdrawal rate for the rest of the monthly interest period. 

So say my account month is from the 10th of the month to the 10th of the next month. If I made a withdrawal on the 20th of the month, going by the first sentence I'd assume I wouldn't receive the reward rate at all for that account month. But going by the sentence it sounds like I would get the reward rate from the 10th to the 19th and the lower withdrawal rate from the 20th until the start of the next account month?

slinger2

"‘Month’, is the period of one month from the day of the month in which your account was opened.

The Reward rate of interest is paid in any month where a withdrawal is not made and the account is not closed.

The Withdrawal rate of interest is paid in any month where a withdrawal is made or the account is closed."

ToastLady

Apologies folks, my mistake.

kdzkdz

Ok, so if my account was opened on the 29th of November and three months later I decide to close the account on the 1st of February. Then according to some previous posts I would only be paid the reduced 3.25% on the two final days.  But in order to achieve this I would have to close the account?

I think its really important to clarify this.