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Slightly confused re Barclays Fixed Monthly Saver
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hardpressed wrote: »6% fixed for 1yr sounds good. So if I save the max £250 each month how much interest would I earn over the year? I've tried to work it out but the old grey matter is confused!
This may be helpful, or it may confuse you further...
Each £250 you put in earns approx 1/12 of 6% of £250 (which is £1.25) for each month that it's in there. The first £250 will be in there for 12 months, so will earn 12 * 1/12 * 0.06 *£250. The next, will be in for 11 months, the next 10 and so on. This gives us:
(12+11+10+...+2+1)/12*0.06*£250 = (78)* £1.25
= £97.50
If the Taxman gets a bite, reduce by the appropriate appropriation...I am not a financial advisor or other expert. All posts are purely my thoughts at the time for discussion, not advice. Bear in mind, even most of this disclaimer is ripped off another forum user. Please check out the facts first before doing anything.0 -
If you had the £3K available today, and can tie it up for the year, Chelsea BS are offering 4.4 % (for about 13 months)http://www.thechelsea.co.uk/savings/invest_fixrateops_intro.html0
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Hardpressed : If you scroll down the Barclays website on the Monthly Fixed Rate page (right at the bottom, easy to miss) you will find that you will receive approximately £124.00 gross interest over the year.
Hmmm... that would appear to be based on the (somewhat) mythical 7.75% rate (& before Tax)0 -
Hmmm... that would appear to be based on the (somewhat) mythical 7.75% rate (& before Tax)
Indeed. Why does it not surprise me somehow that they have forgotten to update that figure
Gross interest is about £124 at 7.75% and £96 at 6%. So there is about
£22 (=0.8 x (124-96)) at stake in relation to whether the rate is 6% or 7.75% for a basic rate taxpayer contributing the maximum monthly amount.
I don't think MSE would have put the item about the 7.75% being the rate (as long as account opened by and first contribution paid by end of December) if they hadn't checked it out properly. But it doesn't look like branch staff are aware of this.
It's difficult to know what is going on as we weren't party to the conversation between MSE and Barclays.
MSE. Abandon hope all ye who enter here0 -
Sorry guys, to disappoint you in terms of interest and amount:
7.75% AER - works at compounding 7.49% each month
7.49% Gross - actual RATE each month, (so 7.49% would be used instead of 7.75% in calculation)
Last but not least...
5.99% Net0 -
bluebell_lily wrote: »Sorry guys, to disappoint you in terms of interest and amount:
7.75% AER - works at compounding 7.49% each month
7.49% Gross - actual RATE each month, (so 7.49% would be used instead of 7.75% in calculation)
Last but not least...
5.99% Net
Their quotation is
"For example, if you saved £250 per month for the whole 12 month term of the account, you will get back your deposits totalling £3,000 (12 x £250), and will have received in total approximately £124 gross interest"
At 6% it is "£96 gross".
And at 7.75% it is "£124 gross"
So they HAVE got it wrong as it is clearly based on the old rate. So I am happy my previous figures are correct MSE. Abandon hope all ye who enter here0 -
bluebell_lily wrote: »Sorry guys, to disappoint you in terms of interest and amount:
7.75% AER - works at compounding 7.49% each month
7.49% Gross - actual RATE each month, (so 7.49% would be used instead of 7.75% in calculation)
Last but not least...
5.99% Net
Thankyou. Hadn't twigged it was crediting Interest monthly.That's Still at the Optimistic 7.~~ % rate though .0 -
Indeed. Why does it not surprise me somehow that they have forgotten to update that figure
.....................I don't think MSE would have put the item about the 7.75% being the rate (as long as account opened by and first contribution paid by end of December) if they hadn't checked it out properly. But it doesn't look like branch staff are aware of this.
It's difficult to know what is going on as we weren't party to the conversation between MSE and Barclays.
I'd like to think MSE would have a more reliable source than the rest of us , but have they done anything other than spoken to someone at Barclays - same as the rest of us - and just got another one of the many shades of mis-understanding, that you get from speaking to staff. While it is delightful still being able to deal with real people, their confusion is the price we have to accept. If it's not currently published, then 7.75% or whatever - will be a nice bonus if it happens - but don't count on it, if you didn't Open the account before December.0 -
I'd like to think MSE would have a more reliable source than the rest of us , but have they done anything other than spoken to someone at Barclays - same as the rest of us - and just got another one of the many shades of mis-understanding, that you get from speaking to staff. While it is delightful still being able to deal with real people, their confusion is the price we have to accept. If it's not currently published, then 7.75% or whatever - will be a nice bonus if it happens - but don't count on it, if you didn't Open the account before December.
I took it out in the full knowledge the rate was 6% (before all this confusion started) so likewise if I get the 7.75% it's a bonus and the amounts involved aren't huge anyway. Quite intrigued by what is going on though.
Edit: There has been one report of someone today being told the 7.75% rate applied see this postMSE. Abandon hope all ye who enter here0 -
The main savings article has been updated today to clarify the position that the 7.75% rate does apply as long as opened and first contribution is before 31/12/08. Thanks to the MSE team for clarifying that. :T
"Barclays Monthly Savings 7.75% interest for a year & flexible
The Barclays one year Monthly Savings account pays a fixed 7.75% AER, allowing you to save up to £250/month. However, to get this rate you MUST open this account and credit the first payment by 31 December.
The rate on the website is displaying 6%, but Barclays have confirmed to us anyone who gets the payment in by the end of December will get the higher rate. We've had reports of misinformed bank staff only offering the 6% rate, and passed these onto Barclays who gave the following response..."To ensure savers qualify for the Barclays Monthly Savings rate of 7.75% AER they will need to get their first credit into the account by 31 December 2008. We apologise to the small number of customers who have been into the branch and not received this information and we will re-iterate our policy to the branch network."MSE. Abandon hope all ye who enter here0
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