Setting up with ING then moving to Kaupthing Edge

sturgeon

I'm in a position to save around £600-£700 a month for about a year. I was interested in the Kaupthing Edge account, however they don't pay interest until your balance is £1000. I can probably only pay in £200 this month, so even with £600-700 next month I will still be short and my money will be doing nothing. Should I start putting my money into another savings account like ING, get my balance to £1000 and then can I, penalty free, transfer my money to the Kaupthing Edge account? Or is there a better savings account I should use for the first few months rather than ING, which will also allow me to withdraw the lot and close the account without penalty?


(edit) Actually Alliance & Leicester's esaver account also offers 6.5% AER until January 2009 with easy access to money anytime, so what's the point of a) starting with ING at a lower rate and then b) moving to Kaupthing for exactly the same interest rate as alliance and leicester? Should I just setup the A&L account and stick with that? I'll get £20 on quidco too.

whu

if A&L doesnt have a minimum amount to get that rate it seems a good idea - remember that KE offer 0.3(I think) above base rate until 2012(I think) so if A&L drops rates at any time it might then be worth transferring to KE - as long as A&L is easy access I dont see that you will get penalised for transferring to KE if you choose to

YorkshireBoy

The A&L eSaver has withdrawal constraints. Also, I'm not sure where you got the "6.5% AER until January 2009" from? This account pays a variable rate doesn't it?

Rather than mess around, why not go with BM's eSaver? It offers the same 6.5% AER but with no 'catches'.


EDIT: If you want £20 from Quidco, just open the A&L eSaver, pay £1 in, bag the £20 (and then close the account if you want to).

sturgeon

I just had a look at the BM one. The thing is that the interest is calculated daily but only paid after a year-is this normal? The A&L pays monthly. Does Kaupthing pay interest monthly or yearly?

whu

you can get it monthly for KE

flossy_splodge

EDIT: If you want £20 from Quidco, just open the A&L eSaver, pay £1 in, bag the £20 (and then close the account if you want to).

Can you do this without affecting your credit rating?:rolleyes:

YorkshireBoy

flossy_splodge wrote: »

Can you do this without affecting your credit rating?:rolleyes:

Just done it! Why would it affect my credit rating?...it's a savings account.

msaquib

It should not affect the credit rating - It's just a savings account. They would have done unrecorded search at the CRA which should not show up if you apply for credit with any bank.

MS