The Top Easy Access Savings Discussion Area
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The Derbyshire has now pulled the Net Saver 1 account0
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I hope the Derbyshire BS offer doesn't get pulled before my chequebook arrives...although I could just apply now and deposit in a week or so, right?0
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I hope the Derbyshire BS offer doesn't get pulled before my chequebook arrives...although I could just apply now and deposit in a week or so, right?
I'm afraid not:
Derbyshire NetSaver (Issue 1)
Due to high volumes of applications we have now withdrawn Derbyshire NetSaver (Issue 1). We apologise for any inconvenience this will cause.
If you have already submitted an online application form, we must receive your initial deposit cheque and supporting documentation by 12th October 2011.
Please act quickly to avoid postal delays0 -
Sorry to be rude but.... yes, being dumb!Thanks LOL
I don't mind about the one withdrawal per year, I can save that withdrawal for later because I will have some use for it soon. In the ideal case, if I dont have any need for it, I'll keep it there for the year just to get the bonus.
For the Derbyshire B/S offer, its only 3.25% per annum right? for what you have at the end of the year. Whereas the Nationwide offer, you get paid that every month so 3.12% (x12months?) will work out more that the one-off interest payment at the end of the year right?
Honestly ...I may be overthinkin' this, or am just being dumb......
As Stevexx explained above, the 3.12 nationwide pays is an annual rate (ALL banks quote annual rates). But you receive the interest monthly (0.26% pm).0 -
But you receive the interest monthly (0.26% pm).
Slightly less as the 3.12% includes compounding.
It's actually 1.0312^(1/12)=1.025635..., so 2.563% pcm.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Hello, please allow me to ask a dumb question too!!! I have been looking at the top quick access savings accounts trying to decide which ones to go for. I have a lump sum of money that needs to be kept somewhere for anywhere between 1 month up to around 12 months depending on how quickly I reinvest it into a property. Of course I would like to make some interest in this time if possible. My question is, does it make a difference if I put the money into a savings account which has a monthly interest payment versus an annual interest payment? bearing in mind it may be in the account as short as 1 or 2 months.0
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No. Any owed interest will be paid upon account closure.0
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My question is, does it make a difference if I put the money into a savings account which has a monthly interest payment versus an annual interest payment? bearing in mind it may be in the account as short as 1 or 2 months.
If you are scratching over pennies, I think the annual account is slightly better, given the same APR, which means that over a whole year, the interest is the same. But the gross rate for monthly interest tends to be slightly lower, with the difference made up due to compounding. So if you hold for less than a year, you benefit from the fact that the gross rate is higher.
Think of a graph, with the initial deposit at the left and the deposit + interest on the right. With annual interest, the money owed to you is a straight line joining the two, so if you close the account, you get an amount of interest directly proportional to elapsed time.
With monthly interest, there's a slight curve upwards due to compounding. So the line is slightly below the straight line initially, then gets steeper so that it arrives at the same place after a whole year. But at any time before the year, it is below the straight line, so you have less interest.
Another way of thinking about it is you rely on compounding to make up for the difference between the monthly and annual gross rates. The compounding makes most difference in the later months, when you have received more monthly payments. So during the early months, you haven't received enough for the compounding to become effective. (And in particular, during the first month, you've received no interest so no compounding.)
(This ignores the effect of tax - when you actually receive the monthly interest, it's net, so it compounds at a slightly lower rate. I think. Can't be bothered to think about that bit at the moment...)0 -
Thanks Dragon Q and Psychic Teabag for explaining that to me. For the first time in my life, I am trying to really understand the financial decisions I am making!!!0
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I liked the look of the Saffron BS 'clean' 3.15% account that appeared this weekend, so I had a look.
Take care, it looks like the industry might have found a new sales wheeze. The detailed conditions say they'll review the rate every three months to make sure it stays in the top 10 Moneyfacts "online" savings accounts. The hyperlink actually goes to the Moneyfacts internet accounts.
That top 10 currently ranges from Newcastle's 3% to Melton Mowbray's 2.27%. And the first review is in November. So we could be looking at just 1 month at the headline 3.15% and then anything down to 2.27% (the median of the top 10 is 2.5%).
I suggest MSE warns about this on the Top Savings page.0
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