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r thritis

First Direct E-savings Aer

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Here's the sales pitch on the website:

. start saving from only £1 (maximum balance £500,000)

. earn a healthy 5.00% AER (4.89% gross p.a.) variable on every penny in the account

. instant access to your money* (although no interest is paid on the full account balance in any month you make a withdrawal)

. online statements

. interest calculated daily and paid monthly

. one account per customer.

The third point (the bit in brackets) must substantially reduce the amount of interest they have to pay out. The whole point of quoting AERs is for comparison between different product offerings. I think this is therefore very misleading for First Direct to quote an AER of 5% as they should factor in an allowance for this non-payment of interest in any month you make a withdrawal.

Anyone agree?

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Yeah, don't touch them with a barge pole.

Abbey are doing 5% paid monthly at the moment, but they seem to be slow in the set up process and as someone else has said, are not a patch on ING with the web interface/account management console.

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Here's the sales pitch on the website:

. start saving from only £1 (maximum balance £500,000)

. earn a healthy 5.00% AER (4.89% gross p.a.) variable on every penny in the account

. instant access to your money* (although no interest is paid on the full account balance in any month you make a withdrawal)

. online statements

. interest calculated daily and paid monthly

. one account per customer.

The third point (the bit in brackets) must substantially reduce the amount of interest they have to pay out. The whole point of quoting AERs is for comparison between different product offerings. I think this is therefore very misleading for First Direct to quote an AER of 5% as they should factor in an allowance for this non-payment of interest in any month you make a withdrawal.

Anyone agree?

The account works well for me - you just need to manage it sensibly. The account really is for longer term savings which you can just leave alone. This is presumably why they can offer 5%.

If you need to withdraw money, then you withdraw it all on the 1st of the month and put it somewhere else, that way you would lose very little. If you want to dip into your savings this is not an account for you.

I get the interest paid 1st of month into my current account, leaving the capital in the e-savings account. I can then spend the interest if I want to or invest elsewhere as the fancy takes me.

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I noticed that point after openning an account when I was about to pay money in!

In the end I opened a savings account with Bradford and Bingley - 4.85% AER and no penalty for making a withdrawal. You can also link to 3 other accounts, so as well as linking it to my regular bank account, I have also linked to ING and another one, so if their rates beat B&B in the future I can transfer my funds directly.

That (B&B 4.85%AER) seems to be about the best rate on offer at the moment if you ignore the introductory offers (ie Cahoot 5.25% for 6months etc).

Edited by Pete95

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I noticed that point after openning an account when I was about to pay money in!

In the end I opened a savings account with Bradford and Bingley - 4.85% AER and no penalty for making a withdrawal. You can also link to 3 other accounts, so as well as linking it to my regular bank account, I have also linked to ING and another one, so if their rates beat B&B in the future I can transfer my funds directly.

That (B&B 4.85%AER) seems to be about the best rate on offer at the moment if you ignore the introductory offers (ie Cahoot 5.25% for 6months etc).

I have nationwide's E-saving account (it has to be in conjunction with a NW flex current account which pays interest as well though much lower) It's 4.75% with no withdrawal penalties so 0.1% lower than B&B

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I almost went with icicibank but changed my mind due to dodgy reviews. I heard it took some people months to open an account due to a huge backlog.

They offer the highest rate of 5.15 aer for a instant access account.

They`re probably ok now tho.

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I almost went with icicibank but changed my mind due to dodgy reviews. I heard it took some people months to open an account due to a huge backlog.

They offer the highest rate of 5.15 aer for a instant access account.

They`re probably ok now tho.

Agree with ImupNorth - simply make the withdrawal the day after the interest is paid - you shouldn't use the account unless you're tranferring your total balance elsewhere - it's not the type of account to mess araound with 10% or so of your balance in and out etc...

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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