Investboy
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Post by Investboy on Oct 27, 2015 16:53:34 GMT
The only current account I'm aware of significantly changing terms and conditions was when Lloyds made the Classic Advantage account less attractive while introducing the Club Lloyds account with just one account per customer at 4.0%. For those who like it simple, Tesco's current ac pays 3.00% on £1+ and now has no fee, DD or monthly funding requirements. I keep my monies in Lloyds Club, have 4 of them. So there is no chance I'll be investing in month/1yr for rates <4%. Of course I'm a little fish and 20k limit on 4 of those accounts is plenty for me.
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ilmoro
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Post by ilmoro on Oct 27, 2015 17:13:45 GMT
The only current account I'm aware of significantly changing terms and conditions was when Lloyds made the Classic Advantage account less attractive while introducing the Club Lloyds account with just one account per customer at 4.0%. For those who like it simple, Tesco's current ac pays 3.00% on £1+ and now has no fee, DD or monthly funding requirements. I keep my monies in Lloyds Club, have 4 of them. So there is no chance I'll be investing in month/1yr for rates <4%. Of course I'm a little fish and 20k limit on 4 of those accounts is plenty for me. How did you blag 4?
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Investboy
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Post by Investboy on Oct 28, 2015 7:35:40 GMT
I keep my monies in Lloyds Club, have 4 of them. So there is no chance I'll be investing in month/1yr for rates <4%. Of course I'm a little fish and 20k limit on 4 of those accounts is plenty for me. How did you blag 4? 2 for myself, 2 for wife
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jimbob
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Post by jimbob on Oct 28, 2015 12:19:06 GMT
Santander from 1st Jan will be £60/year, so on £20k you're actually only looking at a 2.7% account. If you go under 20k, the interest becomes worse and of course there is tax on top which you pay out on the 3% but don't get back on the £60 fee. I suppose it is FSCS protected but the real rate of return on that account looks skinny going forward to me.
My accounts are TSB, Nationwide, M&S Reg Saver, FD Reg Saver. That's the 5 and 6% accounts cleared, 4% may be worth it in the future but I've set an awful lot up recently ^^; ... Santander 123 simply wouldn't be even if I got 30k more in my bank tommorow.
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arbster
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Post by arbster on Oct 28, 2015 13:35:57 GMT
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Investboy
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Post by Investboy on Oct 28, 2015 14:27:51 GMT
Yes, but that was a while back and we've upgraded from Vantage. So not sure it is possible now.
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Post by brokenbiscuits on Oct 29, 2015 13:24:33 GMT
Same with tsb. You could get 2 accounts each but I understand that has stopped now. I quickly opened 2 for the missus and an extra one for me before it stopped.
We now have them all filled.
Rather have 5% protected than gamble for a little bit more.
8k is a massive buffer for any surprises. There isn't much that could happen that would knock us off our feet.
I do wonder when I read about people moaning about exit fees. Surely you have cash for emergencies and your p2p is investment on top of that? Ratesetter is not a bank account.
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oik
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Post by oik on Oct 29, 2015 15:05:39 GMT
Santander from 1st Jan will be £60/year, so on £20k you're actually only looking at a 2.7% account. If you go under 20k, the interest becomes worse and of course there is tax on top which you pay out on the 3% but don't get back on the £60 fee. I suppose it is FSCS protected but the real rate of return on that account looks skinny going forward to me. My accounts are TSB, Nationwide, M&S Reg Saver, FD Reg Saver. That's the 5 and 6% accounts cleared, 4% may be worth it in the future but I've set an awful lot up recently ^^; ... Santander 123 simply wouldn't be even if I got 30k more in my bank tommorow. Depends how much you want in cash savings and how much hassle you'll accept. It can be a balance of return v convenience. Santander is useful to me because with 4 accounts (including Mrs oik's) I can instantly access £80k for investment opportunities. It also pays cashback on DDs, in my case amounting to £120 a year which is untaxed and will still cover the new higher fees when they come in for two accounts. To add to your list there's also BOS and Tesco which both pay the same rate as Santander but with no fees and with a lower limit - and not forgetting Halifax who'll pay £60 pa net of tax on a balance of zilch. I know a lot of people like regular saver accounts but, with a few exception, seem too much trouble to me for the small monthly sums they allow. Many only run for 12 months so the average balance is tiny. They can also drop the rate as soon as you have a decent balance as did Nationwide and Newcastle BS. May still suit some. All in all, there're a lot of options before anyone considers lending at 3.00% using P2P platforms with the attached risks. It's still bit of a mystery to me why some appear to require little or no risk premium.
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jimbob
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Post by jimbob on Oct 29, 2015 15:12:34 GMT
Oik, think there is a fair bit of horses for courses. If your savings are 40-60k+ (And you're mortgage low/free) then Santander makes sense. I just think it's now a horrible option for us smaller savers with the fee substantially eating into the interest. As you put for you it makes sense, for me it doesn't
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arbster
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Post by arbster on Oct 29, 2015 15:14:53 GMT
Oik, think there is a fair bit of horses for courses. If your savings are 40-60k+ (And you're mortgage low/free) then Santander makes sense. I just think it's now a horrible option for us smaller savers with the fee substantially eating into the interest. As you put for you it makes sense, for me it doesn't If you're a smaller saver then you shouldn't even be looking at 3% - there's enough 5% and 4% around to soak up £20k+ for a couple.
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oik
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Post by oik on Oct 29, 2015 21:22:45 GMT
Oik, think there is a fair bit of horses for courses. If your savings are 40-60k+ (And you're mortgage low/free) then Santander makes sense. I just think it's now a horrible option for us smaller savers with the fee substantially eating into the interest. As you put for you it makes sense, for me it doesn't Would totally agree with you. With so many options out there, there should be something to suit everyone. For many people Santander 123 will only make sense after using the other 3-5% options. Could look better for someone picking up a lot of DD cashback which could give them above the nominal 3% return, especially if they had just one account. Central point is that although lots of peeps complain about poor savings rates, they're only bad if they don't look for better. Back around 2010-15 I had a 5 year fixed rate product paying 5.15%, which sounds pretty good, but for much of that time RPI was around 5%. Now up to 5% and instant access can be had with RPI at 1% and CPI at minus 0.10%. We've rarely had better. A difficulty I still have with P2P is that it's nigh impossible to assess the risks and therefore what I need as a risk-premium. I have less problem with, as Rumsfeld put it, the "known unknowns", it's those pesky "unknown unknowns" with little possibility for useful back-testing. I get the impression that a fair few are taking low P2P rates thinking that because the risks aren't known that they can't exist.
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Post by uncletone on Oct 30, 2015 22:55:27 GMT
I know a lot of people like regular saver accounts but, with a few exception, seem too much trouble to me for the small monthly sums they allow. Many only run for 12 months so the average balance is tiny. I rapidly closed a regular savings account with Nationwide, paying 5% on an accumulated £22K, when I discovered that if I dared to withdraw a pound instead of shuffling in the required 1K in a month I would be docked a month's interest on the entire balance of the account. Losing the interest on that which one withdraws is common enough, but losing the interest on the remaining full balance is beyond the pale.
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dermot
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Post by dermot on Oct 31, 2015 18:09:33 GMT
Santander from 1st Jan will be £60/year, so on £20k you're actually only looking at a 2.7% account. If you go under 20k, the interest becomes worse and of course there is tax on top which you pay out on the 3% but don't get back on the £60 fee. I suppose it is FSCS protected but the real rate of return on that account looks skinny going forward to me. My accounts are TSB, Nationwide, M&S Reg Saver, FD Reg Saver. That's the 5 and 6% accounts cleared, 4% may be worth it in the future but I've set an awful lot up recently ^^; ... Santander 123 simply wouldn't be even if I got 30k more in my bank tommorow. Indeed, but the cashback from our direct debits more than pays even the new £5 fee on both accounts, so we actually get the 'real' 3% on £40K On which point, we have 7 direct debits in total, so have 3 that we could migrate to other current accounts - I don't want to open any more Santander accounts (ie a joint and two singles), as we would then be over the £75K protected total (including some cash ISAs). Though how big a risk is there of Santander failing completely (and thus potentially losing maybe £20K of unprotected cash) against other, riskier, options? So, any suggestions for further current current account homes for a bit of cash? Lloyds best rate is what, 4% for £5K max with a monthly fee of £5 with two direct debits - anything around with a higher limit? Paragon Bank savings rates aren't too bad, for general retail banking... but not close to P2P or high paying current accounts. Dermot
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oldgrumpy
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Post by oldgrumpy on Oct 31, 2015 18:29:53 GMT
Lloyds best rate is what, 4% for £5K max with a monthly fee of £5 with two direct debits ...
...but I never pay that £5 fee because I have more than £1500 (the minimum) paid in each month. (and keep the balance over £4K to maintain the 4%. If the balance drops below £4K the interest rate drops to 2%, but only for the day(s) in which that happens. Interest is calculated daily (but paid monthly).... and there are other perks which I ddn't actually want, but had to choose one, so I get "free" Gourmet Society membership, and I have only used it once; my banana supplier refused a discount.
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jonah
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Post by jonah on Oct 31, 2015 19:03:31 GMT
Santander 20k at 3%, need 2 DDs and 2 (soon 5) fee. Cash back on some DDs. Lloyds 5k at 4%, needs two active DDs, pay in 1500 to avoid fee. Also provides a 4% regular saver. bank of Scotland 3x 5k at 3%, needs 1k per month paid in tesco 2x 3k at 3%, no other requirements tsb 2k at 5%, needs 500 per month paid in. Also provides a 5% regular saver. Cashback on contactless payments up to 100 per month (@5%) nationwide 2.5k at 5%, needs 1k per month paid in. Also the rate only lasts one year.
So no, there isn't anything the size of Santander but there are enough other options to get 30k or so per person without doing regular savers or going below 3%.
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