Looking for a top(ish) savings account with FP withdrawals

cloud_dog

Hi....So I am looking for a replacement savings account that supports FP withdrawals.  Not for me but for the offspring.  Yes, they could / should do this themselves, but this is what I do

They have basically begun their responsible lives using Chase, which obviously has always had a decent savings rate available.  And they have gotten used to managing their finances (spending money) with keeping a low balance in the current account and all of the remainder in the savings account, and simply moving cash from savings to current when they might go out or spend money. 

In a weeks time their 'boosted' savings account will drop to 3.5% and I'm looking to see what other FP withdrawal accounts might be out there.  They have a Marcus account (paying 4.3% with the bonus), but I'm ideally looking for something around the 4.75%.

I'm sort of discounting Moneybox (you need a qualifying account for the top rate), Chip (limited withdrawals for the 4.85% rate), Plum (cash ISA not on the agenda, and usual savings rate not great), and I am ignoring Atom with the whole 'don't withdraw / rate bounces back' (yada yada).

So, any suggestions, or am I on my own

jaypers

Cahoot Sunny Day pays 4.75% on up to £3,000 so is a good option. Rate lasts for a year…..unlimited and immediate FP transactions. They are part of Santander. Only slow bit is waiting for the access code to arrive by snail mail if you’re a new customer.

allegro120

jaypers said:

Cahoot Sunny Day pays 4.75% on up to £3,000 so is a good option. Rate lasts for a year…..unlimited and immediate FP transactions. They are part of Santander. Only slow bit is waiting for the access code to arrive by snail mail if you’re a new customer.

If £3,000 allowance is not enough they can double it by opening two accounts, 1 sole and 1 joint.

Archerychick

Then depending on how much savings they have, e.g. if they’re over £3k split it between the Cahoot rainy day which is fast payments, and something like Gatehouse which is slower and at 4.65%. This is what we have done in place of Chase. I’ll keep enough for monthly cash flow in Cahoot and the rest in Gatehouse 

cloud_dog

Archerychick said:

Then depending on how much savings they have, e.g. if they’re over £3k split it between the Cahoot rainy day which is fast payments, and something like Gatehouse which is slower and at 4.65%. This is what we have done in place of Chase. I’ll keep enough for monthly cash flow in Cahoot and the rest in Gatehouse 

Thanks, but it is more the FP aspect which I feel I need to address as a primary consideration.  It might be that it can be addressed with two accounts (but I'm sure I'll get rolling eyes  ); a FP account for more immediate requirements (e.g. Cahoot), and a more traditional one day / next day savings account. 

jimjames

I use Tandem, rate not quite as high as those you mention (4.40%) but FP are instant unlike some providers and no limit on withdrawing money (or indeed on adding money).

Malchester

I have Virgin Defined Access account and Wealthify easy access. Both are immediate fast payment 7 days a week. Virgin has a limit for withdrawals but Wealthify has no limit and can use open banking 

cloud_dog

Thanks for the comment.  Obviously the VM is limited access, so that is a no, and Wealthify is only fractionally higher (0.09%) than their current other savings account at Marcus (with the bonus); which is also FP.

saajan_12

How much are we actually talking about? If its just going out money, then perhaps they can keep the bulk in a high interest savings account and then transfer £1000 at a time to the CA / linked saver with their main bank. Even if its a 1% lower interest rate, that's £10 over a year, less if they'll sometimes dip into it. Then when the £1000 float starts to run low, then transfer over another £1000, but not right before they're heading out, so the FP concern is reduced.

I know its a MSE site but trying to keep it super lean in the main bank / account and maximising that 1% interest might lead to them coming unstuck if / when there is an issue with transferring, and it could be more costly or worrying if they're left unable to get home, having to pay to withdraw or having to dip into an overdraft. 

cloud_dog

I'm not looking to chase rates as such, just looking for a reasonable rate with FP.  In total they have about £11k in their savings account, and they tend to operate their bank account with a virtually zero balance.

As commented above a two account might work with Cahoot and a.n.other.