It does @projectfortytwo, thank you. I’ve checked their FCA registration and there is a warning that they are only registered for certain activities. Couldn’t spend the time then to check what the exemptions were. R-
1 Like
Returning to this, I have a further question. What difference is there between interest paid monthly and it being paid annually if it’s calculated on a daily basis? Other, that is, what you see in the account balance. R-
It gives you the opportunity (at least with some banks) to have the interest paid out to your nominated account as a monthly income. Apart from that, the AER will be the same, provided that you don’t withdraw the interest.
2 Likes
Thanks @mikez - that was much more straightforward than I’d imagined. R-
2 Likes
This question was asked on the MSE Forum and (unsurprisingly) engineered quite some discussion and debate.
The obvious initial advantage is being able to control which tax year your interest is paid (and which PSA it could reflect in).
The debate spiralled quickly into whether you receive the same level of interest, and micro calculations.
For example, one stated that the interest is paid and credited monthly at the gross rate. If this is withdrawn each month it obviously does not compound and so AER may not be achieved.
Another claimed that annual interest is calculated daily at the AER rate, so if you closed an annual interest account down mid-year, you would achieve more interest than a monthly one!
Personally, I don’t care which is correct as I cannot be bothered with micro pennies, but some clearly do.
I find the Zopa ISA very appealing. I’m getting 5.08% on a flexible cash ISA and withdrawals and deposits appear in minutes. You can also split it up into pots all in the same ISA which I find to be very handy.
You could try Paragon. No app, not bad rates. Access via website.
The fraud algorithms don’t like this sort of activity.
I had same with TSB and Moneybox last week. So stressful that I won’t be depositing any more in that particular ISA.
1 Like
Won’t be for everyone but Yorkshire Building Society has a £50 monthly esaver at 8% (variable), with three withdrawal dates per year.
1 Like
I need a pay raise to keep up with all these regular savings accounts 
Opened mine this morning, along with a HSBC RS @ 7% FIXED.
Though no withdrawals on that one, other than closure which then reduces the interest rate to a paltry amount.
Thought I’d open a Coventry BS account at 4.83% AER. I have to send them a picture of myself holding my passport like some proof of life ransom demand. I don’t think I’ll bother.
My nearest branch is 50 miles away, in Milton Keynes.
Wait a year or two and you’ll have the CoOp branches to choose from too
I opened mine donkeys back and never had to do the ID thing, but can open accounts with a click now.
I think I might be ahead of you as I already have one of their Moneymanager accounts, which is what became of the Coventry First current account. Might be that they’ll dust off the software and upgrade those accounts again rather than move to the CoOp platform.
It can hardly be worse than the Co-Op app!
Sorting out a photo now.
In its day, I gather that Coventry First was very well thought of. Mind you, so was the CoOp some years back too.
2 Likes
Should be available again not too long from now, but sporting a Visa symbol once again.
On that front, their Moneymanager accounts still support DDs and standing orders via the website so if they’d just reissue them as debit cards, that would be a nice start. They only stopped issuing them as debit cards in 2019.
Looks like the IT people didn’t think dropping current accounts was going to be a permanent thing: Information about current account services | Help
1 Like