New Chase Regular Saver 6.5%

masonic

https://forums.moneysavingexpert.com/discussion/comment/82152391#Comment_82152391

That statement is correct if they are not crediting the interest monthly. Accrued interest doesn't arise for tax until it is credited. Interest is always credited upon account closure, but that's irrelevant if you don't trigger the interest to be credited by closing the account.

This is different than interest being credited but inaccessible, where it does not arise until maturity.

There is a rise in accounts that show accrued interest that hasn't actually been credited, including some which show daily accrued interest.

If this is the case, then it contradicts the account summary information.

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/82152405#Comment_82152405

But the interest in this case is being credited monthly, from the Chase T&Cs

Interest on the Regular Saver is calculated daily and paid monthly on the day of the month you opened your Regular Saver. For example, if you opened your Regular Saver on 13 March you would be paid interest on 13 April, and so on.

masonic

https://forums.moneysavingexpert.com/discussion/comment/82152409#Comment_82152409

Then one of the two statements is incorrect. All will become clear when the first interest payment is "credited". If the customer services statement is correct, then this interest will not be included in the available balance.

If Chase is actually reporting to HMRC incorrectly, then that will be a pain for those not on SA. Fortunately they can use the T&Cs to prove some of the interest was credited in a different tax year.

Kim_13

https://forums.moneysavingexpert.com/discussion/comment/82152405#Comment_82152405

Was just going to post exactly that. Furness, Hanley Economic, Cambridge and Saffron are such cases, showing accrued but not credited interest.

My reading of Chase's terms was that they were actually crediting the interest monthly, so it would be taxable in 26/27. In fact this would be consistent with how Chase have credited interest on the normal saver account to date.

But now that their CS have given out contradictory information, I guess there's no way to know for sure until 28th October when the interest has either been credited or is merely showing as accrued.

I suspect it is credited monthly as their systems are already geared up for that, so it would cost them money to change.

Bigwheels1111

https://forums.moneysavingexpert.com/discussion/comment/82152038#Comment_82152038

Thanks for the info.

But I'm locked into 5 & 7 year fixed rate bonds.

Took them out when I was a carer and not working.

As I now work I'm stuck with the tax bill.

For 2 more years until some mature, Then funds will buy me a new house.

Plus not much tax to pay.

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/82152414#Comment_82152414

Can we assume (if actual cash is credited as monthly interest) that this is paid into the Regular Saver account?

Since a current account is a prerequisite, could it be credited there?

Does this make any difference (to interest compounding in the RS)?

masonic

https://forums.moneysavingexpert.com/discussion/comment/82152419#Comment_82152419

If it is paid away then that removes all doubt that it was made available to the recipient. But I don't think it will be.

The requirement to have a current account appears to be because the RS is a pot within that account and not an independent savings account. Analogous to Zopa's offering.

pochisoldi

https://forums.moneysavingexpert.com/discussion/comment/82151800#Comment_82151800

Gift cards from TopGiftCards (via TopCashback) get posted as "TILLO* TOPCASHBACK-" plus a number.

The MCC used is "Computer Software Stores"

So the answer to your question in this case is almost certainly no.

TopGiftCards is paying 2.7% for Asda, 1.6% for Morrisons, 2% for Sainsburys and 2.6% for Tesco.

All except Morrisons pay more than Chase, and with a cashback credit card paying more than 0.5% even Morrisons pays more than Chase, with no jumping through hoops.

Also if you use the TopCashback reward wallet to "buy" more gift cards with the cashback, you get a further uplift on the pay out.

As an aside, I have used gift cards bought in person at stores to maximise limited period supermarket offers. Care needs to be taken to ensure that you buy the gift cards at the till (not the petrol station, kiosk, or customer services), and it's a good idea to ensure your transaction includes groceries (lest a "gift card only" purchase gets put through with a different MCC - no evidence that this happens, but I have had "kiosk gift card+groceries" and "kiosk gift card" get treated differently in the past.),

An example of this was when Nationwide were offering cashback on supermarket purchases, with a capped limit - I topped up a gift card to max out the monthly cashback.

Kim_13

https://forums.moneysavingexpert.com/discussion/comment/82152419#Comment_82152419

That would be consistent with their approach to the Chase Saver account, where it was credited to the account that had earned the interest. Back when they were decent for savings pots, I used to have tidying up to do as small amounts would be paid into each rather than all into one. The current account was also a prerequisite of the Chase Savers.

If they spat it into the current account it would not compound in any way, as that no longer pays interest.

I joined Chase in 2021 when 1% cashback on everything and 5% interest on the roundup pot was the best deal out there. Prior to the roundup pot being emptied after a year (as the terms say the RS will be, then continue) there was a prompt to select where you wanted the proceeds to go so I would expect that to happen with the RS also, but time will tell. Many of us will have more than 1 Chase CA/Saver, so them unilaterally deciding where to pay interest (if not to the RS) seems unlikely.

Would the fact that they advertise it as 6.31 gross, 6.5% AER not suggest compounding (and therefore monthly interest?)

flaneurs_lobster

TopGiftCards is paying 2.7% for Asda, 1.6% for Morrisons, 2% for Sainsburys and 2.6% for Tesco.

FWIW

Everup : Asda 2.5%, Morrisons 2%, Sainsburys 2.5%, Tesco 3.5%, Waitrose 3.5%

Tuck : Asda 3%, Morrisons 2.1%, Sainsburys 3.25%, Tesco 3.5%, Waitrose 3.8%

These are TODAY's offers - might well be different tomorrow.