littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,045
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Post by littleoldlady on Oct 16, 2017 8:05:08 GMT
I bank with First Direct, so looked up their offer: 5% on up to £300pm. Sounds ok, but it's only for a year, so the average balance will only be £1800 ... and a 4% premium over a normal cash account means that you're going to all the hassle of setting it up and declaring it on your tax return for a benefit of just £72. Can I be bothered? Yes I know what you mean. If you don't get some sort of satisfaction, even pleasure, out of 'beating the system' the interest earned is barely worth the hassle. Not a bad hourly rate but for only half an hour or so.
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Post by beeje13 on Oct 16, 2017 19:33:40 GMT
Depends on your circumstances.
I don't have to declare anything on a tax return so that's one less hassle - I intend to keep it that way by not exceeding the £1000 PSA and use ISA/pension wrappers. And £72 for example can be more than a days wage for many.
It's nice to know that your money is working for you in the background, hopefully keeping pace with inflation or better.
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Post by df on Oct 18, 2017 19:14:05 GMT
I bank with First Direct, so looked up their offer: 5% on up to £300pm. Sounds ok, but it's only for a year, so the average balance will only be £1800 ... and a 4% premium over a normal cash account means that you're going to all the hassle of setting it up and declaring it on your tax return for a benefit of just £72. Can I be bothered? In the case of this product, I can see another ulterior motive - at the end of the year, the cash gets transferred to a regular savings account that atm pays just 0.05%. I wonder how much of the cash that gets paid into these accounts gets forgotten and stranded in such places? It's not as great as it sounds, but every little helps. This small investment has no risk attached and takes about 5 minutes of your time per year. I bank with First Direct since mid 90's and never heard of premium for current account. Is this something recently introduced for new customers? Good point about the trick. Many banks do that and I'm absolutely sure that lots of cash gets stranded in "0.05%" places. Most people do this move once and forget about it.
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ceejay
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Post by ceejay on Oct 18, 2017 20:35:40 GMT
I bank with First Direct since mid 90's and never heard of premium for current account. Is this something recently introduced for new customers? By "premium" I simply meant that a 5% return is only about 4% more than you can get in a cash savings account these days. Not that you get reach the dizzy heights of 1% at First Direct, of course!
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registerme
Member of DD Central
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Post by registerme on Oct 19, 2017 1:02:06 GMT
I bank with First Direct since mid 90's and never heard of premium for current account. Is this something recently introduced for new customers? I think I first used it two or three years ago, but to be honest I also only used it for a year. I just couldn't be bothered with the phaff for a return that basically equates to a cab ride. Once. Similarly two or three years ago HSBC / First Direct had a one year fixed term "bond" (/ deposit product) where you could get 1.5%? 1.75%? something derisory anyway for up to £100k. I put the max in for a year, but the next year they dropped it to 0.35% or something and frankly I couldn't be arsed. {and yes, my internal treasury desk is raging at the rest of me for saying such an outrageous thing}.
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Post by spiker on Oct 19, 2017 8:11:21 GMT
I am currently experimenting with Charter savings bank
1.25% instant access account.
Figured it was better that a large chunk of my money sitting in there at least making a modest interest rather than pathetic 0.05%.
Protected up to 85k by FSCS
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Nomad
Member of DD Central
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Post by Nomad on Oct 19, 2017 8:23:06 GMT
I am currently experimenting with Charter savings bank 1.25% instant access account. Figured it was better that a large chunk of my money sitting in there at least making a modest interest rather than pathetic 0.05%. Protected up to 85k by FSCS RCI Bank at 1.3% is good too...
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Post by spectra on Oct 19, 2017 9:25:08 GMT
Well, my kids think the Bank of Mum & Dad beats all competitors, non-contributory AVC’s and S & S ISA’s, loans at 0% interest with undemanding repayment terms one of which has made only four repayments since early 2012, maybe I shouldn’t grumble about some P2P platforms' handling of wayward loans and their recoveries performance.
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littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,045
Likes: 1,862
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Post by littleoldlady on Oct 19, 2017 10:29:39 GMT
Well, my kids think the Bank of Mum & Dad beats all competitors, non-contributory AVC’s and S & S ISA’s, loans at 0% interest with undemanding repayment terms one of which has made only four repayments since early 2012, maybe I shouldn’t grumble about some P2P platforms' handling of wayward loans and their recoveries performance. They make repayments?. Where did I go wrong?
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Post by spectra on Oct 19, 2017 10:54:59 GMT
Well, my kids think the Bank of Mum & Dad beats all competitors, non-contributory AVC’s and S & S ISA’s, loans at 0% interest with undemanding repayment terms one of which has made only four repayments since early 2012, maybe I shouldn’t grumble about some P2P platforms' handling of wayward loans and their recoveries performance. They make repayments?. Where did I go wrong? I did say “undemanding” repayment terms which in my family can be interpreted as being “variable” or “moveable”!!!
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Post by df on Oct 19, 2017 11:32:45 GMT
I am currently experimenting with Charter savings bank 1.25% instant access account. Figured it was better that a large chunk of my money sitting in there at least making a modest interest rather than pathetic 0.05%. Protected up to 85k by FSCS RCI Bank at 1.3% is good too... Also Ulster is offering 1.25%, Post Office 1.27% and Cyprus 1.28%. Instant access accounts are good for temporary cash storage. The only problem with RCI is that withdrawals and deposits are not instant. For example , if you withdraw on Friday after 2 pm you don't get your cash until Tuesday.
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Post by spectra on Oct 19, 2017 13:23:52 GMT
Big hitters who are able to produce perhaps £100k or more for a loan or other opportunity at short notice must be holding readily available cash and more than likely receiving next to nothing by way of a return. If this is correct, what is considered to be an acceptable return on said £100k in a quick access account, presumably 1.25% or thereabouts at present, for how long and taking this into account the overall return on one’s investments.
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