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A & L 12% Regular Saver
Comments
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amcluesent wrote:>12% on 12 x 250 quid monthly deposits is much less than this<
Can anyone do the maths on what the gross interest would be, then knock off what would have been earned keeping the full £3000 in a typical e-savings account (say 4.5%) for that period.
Paying in the max £250 per month during the 12 months would accrue approx. £195* gross interest in the A&L 12% account. Basic rate taxpayers would earn £156* interest and higher rate tax payers £117*.
Trying the make a comparison between leaving the full £3,000 in an e-saver, with making £250 deposits into the regular saver is not the correct way of weighing up whether the regular saver it worth it.
If you have the full £3,000 at the outset, you can maximise your interest by feeding the money into the regular saver from an e-saver or interest paying current account (elsewhere in this case). Therefore your money will be earning interest in the regular saver and in an account elsewhere, while it is waiting to be fed in. To fairly compare the amount of interest earned, add together the interest from the e-saver (or interest paying current account) to the the interest gained from the regular saver. In most cases, you will earn more interest using the e-saver + regular saver, than if the money was left in the e-saver for the whole year.
* Approximate calculationsPlease call me 'Kazza'.0 -
Easy. Quick and dirty:amcluesent wrote:>12% on 12 x 250 quid monthly deposits is much less than this<
Can anyone do the maths on what the gross interest would be, then knock off what would have been earned keeping the full £3000 in a typical e-savings account (say 4.5%) for that period.
AVERAGE annual balance in regular saver: 78/144ths of £3,000 @ 12%
78 x 3000 x 0.12 / 144 = £195
AVERGAGE annual balance in feeding account: 66/144ths... ..@4.5%
66 x 3000 x 0.045 / 144 = £62
That's £257 gross - an equivalent rate of 8.56%
Allowing for an average of 3 days lost interest whilst cash must move across from feeder account (0.1 months) reduces this by about
1.2 x 3000 x 0.12 / 144 = -£3
..and so the final answer would be:
£192 gross from the RS @ 12%
£62 gross from the feeder at 4.5%
Total £254 gross - £203 net basic - £152 net higher
£254/£3000 is about 8.45%
£203/£3000 is 6.75%
£152/£3000 is 5.1%
'Gain' over 4.5% account is 3.95% alone. That's very nearly twice the interest earned from leaving it in the e saver account......under construction.... COVID is a [discontinued] scam0 -
Hi,
Is this only for new customers? I already have a premier account, and easy saver a/c with A&L and from there website it only seems to be fornew premier a/c customers! seems a little unfair. Lloyds let you set a monthly saver up whether your a new or an existing customer at 8% apr.0 -
MoneyMan wrote:Hi,
Is this only for new customers? I already have a premier account, and easy saver a/c with A&L and from there website it only seems to be fornew premier a/c customers! seems a little unfair. Lloyds let you set a monthly saver up whether your a new or an existing customer at 8% apr.
Yes, the 12% regular saver is only open to people that don't already have an A&L Premier or Premier Direct current account. Those people who have an ISA or savings account with A&L, but have neither of the current accounts, can apply.Please call me 'Kazza'.0 -
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Sapphire wrote:Seems to me a lot of banks/building societies are opening these types of account - it would be good if Nationwide did so, too (one that existing customers could use, that is). Then one could transfer amounts easily from any accounts one already has with them . . .
Are these accounts generally guaranteed only for limited time periods? :cool:
Must admit that this is what I have always liked about SMILE. I have a current account, had an ISA account and a savings account but their rates are not the greatest. The ISA pays 4.75% now but I have just moved it all to Yorkshire. The savings account pays 4.5%. It has always been very convenient being able to move money around instantly and especially as all my family bank with them too, even my son who only has an ordinary Co-op Bank account. If I wish to deposit money in his account it is instant too.
I have accounts with Nationwide but at the beginning the messing about with having to have a Flex Account that had to have money moved into before being put into a higher rate one was a pain - and, they didn't do it quickly. Don't use them for ordinary banking anymore.
Must say though they do have some very good accounts available for a very short time at certain times of the year. Last Christmas there was a bond paying 6%.0 -
I switched to A&L last year to get the 10% account. Trouble is with the interest only being paid yearly and limited to 250 a month it's not worth the mess they make of transferring over the DD's etc.Debt in 1993: £35,000 | Debt in 2006: £0 | Assets in 2006: £2.3m and counting. :j
Anything is possible with hard work, determination and the love of a good woman.
There is no upper, middle or lower class. Simply those that have class and those that don't.
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MoneyMan wrote:Hi,
Is this only for new customers? I already have a premier account, and easy saver a/c with A&L and from there website it only seems to be fornew premier a/c customers! seems a little unfair. Lloyds let you set a monthly saver up whether your a new or an existing customer at 8% apr.
Annoying isn't it. Might call CS and make a large complaint , and maybe even a very large withdrawal from my saver plus (like all of it) just to show how dissatisfied I am.0 -
I'm keen on opening up a premier current account and wondered whether anyone would be interested in recommending me thus earning £50 ? Let me know on my private address. cheersTreat everyday as your last one on earth! and one day you will be right.0
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Hi Mcivord,
I've just sent you a PM about this.
Cheers,
OxBlue0
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