Regularly Beat the Best Savings Account Rates Discussion Area

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.

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 wrote: »

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!

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

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