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    • betabraga
    • By betabraga 28th Mar 07, 9:22 PM
    • 22 Posts
    • 2 Thanks
    betabraga
    • #2
    • 28th Mar 07, 9:22 PM
    • #2
    • 28th Mar 07, 9:22 PM
    can anybody explain me what martin means with dripfeed.
    across bit by bit from top savings to top regular saver
    ?????
    betabraga
  • Former MSE Dan
    • #3
    • 29th Mar 07, 12:29 PM
    • #3
    • 29th Mar 07, 12:29 PM
    OK, if you pick the Leek United account, you can put up to £250 in it each month. So, if you have £3,000 in savings, the dripfeed technique is the best way to maximise the interest you earn.

    To do it, have the £3,000 in a top paying instant access savings account. Set up a monthly standing order of £250 to the regular saver, so that over the period of a year, the whole £3,000 will be fed across into it.

    That way, you earn high interest on all of the money, all of the time.

    HTH

    Dan
  • rainyday4
    • #4
    • 30th Mar 07, 12:06 AM
    drip-feeding question
    • #4
    • 30th Mar 07, 12:06 AM
    Apologies for being so thick about this but I'm still not sure I know how to drip feed from one high interest savings account into an even higher interest regular savings account. I have an ICICI HiSave savings account and was told by them that I can only transfer money out of it into my 'nominated current back account'. How do I get them to allow me to ALSO transfer money by direct debit to another savings account such as the Leek Building Society's regular saver? Can anyone help please?!
  • confused1
    • #5
    • 4th Apr 07, 11:25 AM
    • #5
    • 4th Apr 07, 11:25 AM
    Beware of these drip feed accounts.
    Their advertised rate of interest is not the real value of what you think you will be getting as you are drip feeding.
  • RayWolfe
    • #6
    • 4th Apr 07, 3:22 PM
    • #6
    • 4th Apr 07, 3:22 PM
    They are EXACTLY as they are advertised.
    If people to not know what "x% per annum" means, they should stay indoors and not venture into the big wide world.
  • xmrb2006x
    • #7
    • 6th Apr 07, 12:19 AM
    • #7
    • 6th Apr 07, 12:19 AM
    Hi, I just wanted to clear up the confusion on this matter once and for all! You DON'T get the full rate (eg 12% on A+L), but you DO get about half of each savings a/c rate added together! So for example :

    ICICI @ 5.8% (half=2.9%)
    Regular Saver @ 12% (half=6%)
    So total = 8.9% gross (This is roughly the actual equivalent total interest you get on the £3000 that is drip fed throughout the year).

    How do I work this out? Well, it's simple if you draw a table from 1 to 12 and work out the interest on each a/c each MONTH (i.e. yearly interest on that month's balance divided by 12, or divide by 365 then X 30). Then if you add each monthly interest up you get a total annual figure for each a/c. When you add the two together you realise that your £3000 has worked harder than if just left in the ICICI alone, and especially if just put into the regular saver alone (which only nets you HALF the advertised rate!).

    It does your head in at first, but eventually it makes sense! It's just whether you can be bothered arranging it all.
  • xmrb2006x
    • #8
    • 6th Apr 07, 12:26 AM
    • #8
    • 6th Apr 07, 12:26 AM
    P.S. I think these regular savers are very cunning, because alot of people won't drip feed them from high-interest savings (just their current a/c) and therefore will only actually get half the interest. I am using Saffron's e-saver because you can use up to 5 accounts linked to it!
    • bristolleedsfan
    • By bristolleedsfan 6th Apr 07, 12:47 AM
    • 7,462 Posts
    • 9,622 Thanks
    bristolleedsfan
    • #9
    • 6th Apr 07, 12:47 AM
    • #9
    • 6th Apr 07, 12:47 AM
    P.S. I think these regular savers are very cunning, because alot of people won't drip feed them from high-interest savings (just their current a/c) and therefore will only actually get half the interest. I am using Saffron's e-saver because you can use up to 5 accounts linked to it!
    Originally posted by xmrb2006x
    u will find those that are drip feeding from current accounts are getting relatively high interest from their current accounts, out of interest which saffron e-saver do u have issue 1 or the reduced interest rate issue 2
  • xmrb2006x
    Hi, I have e-saver issue 1 (5.6%). But, doh, you're right, halifax is doing 6.17% AER current account up to £2500, I could just as easily do from there! Wonder what the highest current account is at the moment?
  • MJMum
    ----------
    Last edited by MJMum; 07-05-2007 at 7:57 PM.
    Don't see the point anymore in offering advice to people who only want to be agreed with...
  • westmax
    A&L is 6.1%, but as they also do an interest free overdraft for the first year, you're better off operating in overdraft until then.
    Originally posted by MJMum
    So, have I got this right, you drip £1000 from the free overdraft into a suitable regular saver over the course of the year, pocket the interest then put 1K back in the A&L c/a?
  • BiscuitLily
    Hi, I was just reading an article on the MSN hotmail site about stoozing, and it says you can get up to 12.5% on regular savings of £250 a month. Does anyone know where this is, or, as the article was written in Jan 07 was it an offer at the time?

    http://money.uk.msn.com/creditcards/articles/article.aspx?cp-documentid=2355547
    • Kazza242
    • By Kazza242 11th Apr 07, 10:38 PM
    • 1,894 Posts
    • 2,449 Thanks
    Kazza242
    Hi, I was just reading an article on the MSN hotmail site about stoozing, and it says you can get up to 12.5% on regular savings of £250 a month. Does anyone know where this is, or, as the article was written in Jan 07 was it an offer at the time?

    http://money.uk.msn.com/creditcards/articles/article.aspx?cp-documentid=2355547
    Originally posted by BiscuitLily
    The article is referring to the Barclays 12.5% regular saver which was available until February 28th 2007. To have qualified savers had to have a current account with Barclays and pay their salary of at least £1,000 into it each month.

    There are lots of other regular savings account currently available, like Yorkshire Building Society 7%. This account allows you to continue saving at the high rate until the balance reaches £20,000. For other regular savers check out the Moneyfacts list, here.
    Please call me 'Kazza'.
  • MJMum
    ----------
    Last edited by MJMum; 07-05-2007 at 7:58 PM.
    Don't see the point anymore in offering advice to people who only want to be agreed with...
  • xmrb2006x
    Re: using O/D
    That's an even better idea! But I wonder what the maximum interest-free overdraft is that A+L would give you?? Would need to be £3000 to make it worthwhile for me really although I suppose you could still fund part of it with the o/d. Jeez, this gets ever more complicated! And it won't fund lots of regular savers. I just wish more people would do the 12% ones...
    Last edited by xmrb2006x; 14-04-2007 at 4:41 PM.
    • betabraga
    • By betabraga 22nd Apr 07, 9:40 PM
    • 22 Posts
    • 2 Thanks
    betabraga
    hello everyone, try to get to this page sooner and did know how!
    I guess,that the new people here get a bit confused like me with all this threads.
    can somebody tell me how to work out the monthly interest,as we know the annual interest only.lets say in 150 pounds put aside every month on a 5.8%
    this is getting quite complicated for me.
    betabraga
  • kev459
    Betabraga
    The monthly interest rate on 5.8% AER would be 0.483% roughly. You work this out by dividing 5.8 by 12 (months), which gives you 0.483% per month. To work out the monthly interest you take £150 x 0.483 then divide by 100, this will give you your monthly interest. Assuming that this is a regular savings account the interest earned on the 1st months £150 would be about 0.72p.
    The second months £150 makes the total in the account £300 plus your first months interest of 0.72p making a total £300.72p. Using the same formula above means that your second month’s interest would be £1.45 which then gets added to your account making the total £302.17.
    The amount of interest you earn every month will keep getting more as long as you keep putting your £150 pm in. All the above doesn’t take into account any tax paid on interest which would be 20% of all interest earned, if you pay at the basic rate.
    Hope this is useful.
    Have you looked at other regular savings accounts such as Halifax, Yorkshire etc. as they all pay more interest, even ICESAVE which is an instant access account pays 5.7% AER.

    kev459
  • RayWolfe
    Are you promoting your own site here? It looks like a big advert to me!
  • kev459
    My own site?
    Firstly I don't even have "My own site". Secondly I couldn't find a simpler way to explain how to work out the monthly interest rate. As my old maths teacher always told me "show all your working out".
    Thirdly I was only giving some alternatives as 5.8% isn't the best rate of interest on a regular saver. Flippin heck!!
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