Egg Savings or Bradford & Bingley?

hoyin

If you don't need to acccess the money for 12 months then why not open a abbey account.

IT has 7% interest Gross. However it is a fixed interest account. So if the interest rates go up you might lose out. In addition you have to pay in min £20 a month.

Perhaps worth checking out?

hoyin

Hoyin

Re: Abbey

I understand that you can pay in a lump sum but also have to have the regular payment (minimum £20).  However, if you closed this account early wouldn't you get the interest paid up to that date?

I checked with Birmingham Midshires as they are paying 5.4% (summer special offer) but with interest only paid on the anniversary next September.  They said that if I closed the account early, interest would be calculated and added to the total when I closed it.  

Theoretically, therefore, could we transfer our money into Abbey and, if we did need before the year was up, get the interest credited anyway?  Does anyone know the answer, as 7% is obviously much better than Egg at 5.5% or BM at 5.4%?

Many thanks

Mr B

Mr B,

I have been checking as I am about to apply to Abbey.

Unfortunately you cannot deposit a lump sum. You can only deposit a maximum amount each month. In this case for Abbey it is £500.

So basically you can save £500 of your wages at 7%. Hence if you have a lump sum it would be best to put it in Bradford and Bingley.

This account is really only handy if you do not have the lump sum and are able to save £500 per month on your wages.

Then after the 12months you would have to withdrawl it and move it to another account.

Halifax do a similar account, and though it is more flexible (as some people have stated on this thread) and has higher interest 7.07% you are restricted to a maximum deposit of £250 per month - half of Abbey!

I hope this helps explain it a bit!

Regards,

Ho yin