I think this is, sadly, a fantasy.
£0.30 interest per day at an unlikely 1.5%.
It is avaible in a number of countries around the globe
Which ones, where? I’d love to see an example of this.
ING has what is called an orange account in a number of countries it operates in where it pays over night daily interest
How much interest? And I assume they don’t lock out your money
I kinda get where you are coming from, similar to duel tariff electricity in the Uk.
In Peak (Daylight hours) you pay more, at off-peak (Night) you pay less. So, I put my washing on a timer to do at 4am…
Can’t see how the reverse of this would work in a banking world though, how much interest would you want to see at night? How would the bank fund this?
the bank can decide on the interest on a daily basis depending on its ability to sell the cash
but anyhing will be more then what you would get when interest is paid monthly
giving monzo a comptetive advantage to park your money even for a few days
wouldnt you agree that even if its a penny more that client would park their idle cash on monzo accounts ? when the interest is paid overnight
So the orange account is a savings account not a current account and has low interest from what I can see.
What do you consider high interest? What are you expecting?
From my understanding of what you’ve described. You want a current account which after a specific time (day 6pm) will warm interest on the balance available over night. Then stop earning interest in the morning.
By the sounds of it you would expect that money to be inaccessible while the bank uses it to try and make money? Then accessible again in the morning.
anything is high interest when you give the bank less then 24 hours to pay you back
i just think an account with this features will be marketing it self and will cost the bank less then TV advertising and such
You’ve not sold anything though. It’s confusing, unknown f your money is accessible and no indication of interest earned, and difficult for the bank to make money from.
How does it work?
What do you want the interest to be? You said high, how high?
How would the bank make money from this if they can only use the money at night for less than 8 hours or so?
What’s the attraction?
I can put my money into a Marcus account and make 1.5% right now.
Edit: and I could have money in a starling current account and make 0.5% all day and night.
Ok let me explain futher - say you have a monzo current account which you use for your day to day banking
Monzo then says i will call this account monzo current save and pay you X amount of interest on any balance below 1000 pounds every night on a daily basis upto the amount of 50.000
so say you put 1005 pounds in the account
only the 5 will earn interest
say you put 51000 you will only earn interest on the 49.000
1000 remanins in your current account balance for your cash withdrawl and debit card purchases 49.000 go to earn you interest over night 1000 sits there because its above the limit
So in this case why overnight and not just pay interest for the entire day?
because its a current account the client has full acess to the cash during the day
Why is suggesting a product that is avaible in the global market classified as such ?
You suggested a £1000 minimum though so is it much of an issue?
I can get 0.5% from other current accounts (or more in some cases). And I’m not going to have more than a few thousand in a current account.
The money would be locked out every night but how would that work for over night payments over £1000?
What kind of interest rate would you be wanting for this?
No product exists that you’ve described.
it does i use it not in the uk though thats why i suggested it here but i can sense you guys cant get your heads around the idea
So I think I get what your trying to suggest. If people have high current account balances can the bank give you more interest by locking it away every night for them to use.
But I’m not seeing an easy way for this to be a thing or why it should…
It’s complicated, it’s not easy to see the benefit for the bank, nor the customer really. And if you have a high balance why not just put it in an actual savings account?