Savings interest rate thread
Discussion
C69 said:
bmwmike said:
g4ry13 said:
The T212 rate has a small amount of risk attached to it. Hence the slightly more generous rate than other places.
What risk is that? Can you elaborate please? You can see how your 'cash holdings' have been allocated to QMMFs (not protected) and banks (protected) on your dashboard.
Out of interest (no pun intended) are you treating T212 purely as a cash ISA?
Not treating it as a cash ISA no, though at the moment it's mostly cash. Why do you ask?
bmwmike said:
Bold - how do I see that?
From the T212 web site:How much of my money is held in QMMFs?
You can see your cash holdings in QMMFs and banks through the app's interest on cash dashboard, and in the 'Cash in banks' and 'Cash in QMMFs' sections of your account activity and monthly statements.
bmwmike said:
Not treating it as a cash ISA no, though at the moment it's mostly cash. Why do you ask?
Just curious to see if people were treating T212 as an alternative to a conventional savings account, in the mistaken belief that their cash was getting the same protection as it would in an FSCS account. Personally, I don't think that T212 makes the risks clear enough.C69 said:
bmwmike said:
Bold - how do I see that?
From the T212 web site:How much of my money is held in QMMFs?
You can see your cash holdings in QMMFs and banks through the app's interest on cash dashboard, and in the 'Cash in banks' and 'Cash in QMMFs' sections of your account activity and monthly statements.
bmwmike said:
Not treating it as a cash ISA no, though at the moment it's mostly cash. Why do you ask?
Just curious to see if people were treating T212 as an alternative to a conventional savings account, in the mistaken belief that their cash was getting the same protection as it would in an FSCS account. Personally, I don't think that T212 makes the risks clear enough.Interestingly, i've been receiving cash daily, but the interest dashboard (under Settings > Earn Interest on Cash) shows I have 0% in the bank, and 0% in the QMMF, yet i've been receiving interest on cash. So, unsure where that leaves things.
I'm mostly using it to buy into a tracker ETF in dribs and drabs anyway, so i'm not overly concerned but it'd make me think twice about putting too much in there.
budgie smuggler said:
are you sure? From a quick scan it looks like the bonus (0.5%) is fixed until then but the underlying rate can change
I agree. The underlying rate (4.58% is variable). The 0.5% is a bonus if you open the account before 6th May. You keep that part for 12 months but the underlying rate can vary. OMITN said:
budgie smuggler said:
are you sure? From a quick scan it looks like the bonus (0.5%) is fixed until then but the underlying rate can change
I agree. The underlying rate (4.58% is variable). The 0.5% is a bonus if you open the account before 6th May. You keep that part for 12 months but the underlying rate can vary. Hustle_ said:
OMITN said:
budgie smuggler said:
are you sure? From a quick scan it looks like the bonus (0.5%) is fixed until then but the underlying rate can change
I agree. The underlying rate (4.58% is variable). The 0.5% is a bonus if you open the account before 6th May. You keep that part for 12 months but the underlying rate can vary. Simpo Two said:
The best rates seem to be only on 'apps'.
I don't do 'apps' but I can do websites which are basically the same thing but come up on a proper-sized screen. If the reason for the high interest rate is low costs, isn't a website is just as low cost as a 'app'?
It’s just the direction of travel. You can bet that there are more people who want those web page-only providers to launch an app than there are people who want the app-based providers to launch a web page. I don't do 'apps' but I can do websites which are basically the same thing but come up on a proper-sized screen. If the reason for the high interest rate is low costs, isn't a website is just as low cost as a 'app'?
journeymanpro said:
Signed up and transferring under paying ones to this
Given the option of putting money with Leeds BS at 4.8% or Zopa at 5.08%, I can't fathom why anyone would chose the latter. On a £20k ISA allocation, thats a difference of £56pa. No way does that make up for the extra risk. And, before anyone jumps down my throat, I say that in the full knowledge that FSCS protection covers a Zopa ISA. There's still risk, and 0.28%pa is insufficient reward.Simpo Two said:
The best rates seem to be only on 'apps'.
I don't do 'apps' but I can do websites which are basically the same thing but come up on a proper-sized screen. If the reason for the high interest rate is low costs, isn't a website is just as low cost as a 'app'?
Like you I don't really do apps. I don't do 'apps' but I can do websites which are basically the same thing but come up on a proper-sized screen. If the reason for the high interest rate is low costs, isn't a website is just as low cost as a 'app'?
I'm not sure that the best rates seem to be only on apps, though. According to Moneyfacts, market-leading rates across a variety of products (I had a quick look at variable rate, fixed-rate bonds and fixed-rate ISAs) can still be achieved via several 'old-fashioned' providers with websites.
So maybe the situation isn't as bad as you think?
Ezra said:
Given the option of putting money with Leeds BS at 4.8% or Zopa at 5.08%, I can't fathom why anyone would chose the latter. On a £20k ISA allocation, thats a difference of £56pa. No way does that make up for the extra risk. And, before anyone jumps down my throat, I say that in the full knowledge that FSCS protection covers a Zopa ISA. There's still risk, and 0.28%pa is insufficient reward.
What is the risk if FSCS protected, I don't follow.Ezra said:
Given the option of putting money with Leeds BS at 4.8% or Zopa at 5.08%, I can't fathom why anyone would chose the latter. On a £20k ISA allocation, thats a difference of £56pa. No way does that make up for the extra risk. And, before anyone jumps down my throat, I say that in the full knowledge that FSCS protection covers a Zopa ISA. There's still risk, and 0.28%pa is insufficient reward.
Risk of what exactly, if you know your cash is guaranteed in the event of failure?Ezra said:
Given the option of putting money with Leeds BS at 4.8% or Zopa at 5.08%, I can't fathom why anyone would chose the latter. On a £20k ISA allocation, thats a difference of £56pa. No way does that make up for the extra risk. And, before anyone jumps down my throat, I say that in the full knowledge that FSCS protection covers a Zopa ISA. There's still risk, and 0.28%pa is insufficient reward.
There's the tax upside, particularly if you are a higher or additional rate payer. And as others have said if it's FSCS protected, how does that differ from Leeds BS or another FSCS backed provider?For me the only question is how easy it is to access the cash.
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