Ulster Bank easy access Saver - 4.5% interest, but is it lost forever if you go under £5k?

What_time_is_it

Hi there. I recently opened an Ulster Bank regular saver. It offers interest of 4.5% so long as the balance is over £5k.

However, I’m not totally clear what happens if the balance drops under £5k. The guidance is not clear to me and when I spoke to someone at Ulster via the app they could not answer the question either!

Basically, if I dip under a balance of £5k and then subsequently go back over £5k, do I “regain” the 4.5% interest rate from that point? Or is the 4.5% interest rate “lost forever” from the moment I go under £5k, regardless of whether I then go back over £5k later?

I haven’t funded the account at all yet as I am worried that if I put in £100 it will register as being under £5k and I will never get the higher interest rate. 

I’m also not 100% certain that the 4.5% rate would be applied to the full balance or just the portion of the balance above £5k.

Can anyone clarify this for me?
Thanks!

exel1966

You'll accrue 4.5% everyday your balance is +£5K. The lower rate only applies to the days below £5K and anything you earnt at the higher rate is 'protected'.

It really isn't worth having this account unless you're going to keep £5K minimum in it.

What_time_is_it

exel1966 said:

You'll accrue 4.5% everyday your balance is +£5K. The lower rate only applies to the days below £5K and anything you earnt at the higher rate is 'protected'.

It really isn't worth having this account unless you're going to keep £5K minimum in it.

Thanks. I have 4.55% at Cahoot until the end of this month. At which point I intend to move about £10k over to Ulster.

eskbanker

The question is asked and answered in the FAQs:

How much money do I need to put into this account? And what happens if my balance goes below £5k, do I lose the bonus offer?

There is no minimum balance, however the maximum you are able to deposit is £3,000,000. To receive the fixed bonus interest, you'll need to maintain a balance between £5,000 and £3,000,000.

If your balance goes below £5k, you will receive the lower variable rate only. If you then top up your balance to £5k or more, you'll start to receive the bonus rate again. As long as your balance remains between £5k and £3m, you'll receive the bonus rate until 18 November 2026.

https://www.ulsterbank.co.uk/savings/limited-edition-saver.html#faqs1

What_time_is_it

Wonderful! Thanks. That’s exactly the info I needed.

Ayr_Rage

Be aware that the interest rate shown in the app is not real time and does not update at all at weekends.

However, as funds are credited almost instantly when Faster Payments are used and interest is paid daily you will get interest as soon as funds arrive.

Please read the Ulster product information and FAQs, it's all in there and much better than asking questions on t'internet.

Malchester

I think this is an easy access account rather than a regular savings account. The terms have thankfully been updated to make clear what happens when funds go under £5000. Originally the terms were not at all clear 

What_time_is_it

Yes. Much clearer now. Thanks.
it looks like this account will do what I want it to do!

gunjin

Be warned that they've got some pretty drastic withdrawal limitations on this account. £750 to £2000 max per day. If you are looking to dump a large sum into this be aware it could take you a long time to get it out of there! Does not look like there is a CHAPS option for larger amounts too (but I could be wrong on that).

gravel_2

gunjin said:

Be warned that they've got some pretty drastic withdrawal limitations on this account. £750 to £2000 max per day. If you are looking to dump a large sum into this be aware it could take you a long time to get it out of there! Does not look like there is a CHAPS option for larger amounts too (but I could be wrong on that).

If you do additional security you can increase the daily limit to £50k.

Ayr_Rage

gunjin said:

Be warned that they've got some pretty drastic withdrawal limitations on this account. £750 to £2000 max per day. If you are looking to dump a large sum into this be aware it could take you a long time to get it out of there! Does not look like there is a CHAPS option for larger amounts too (but I could be wrong on that).

Once you have registered for biometrics in the app you can select your daily limit and the maximum is £20,000/day, not £750 to £2000.