Nationwide regular savings account

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Jackjack21
Jackjack21 Posts: 96 Forumite
in Savings & investments
Hello,

I am looking at opening a Nationwide Regular Savings account, however I don't really understand how these types of accounts work.

I am aware that the interest rate depends on the amount of money deposited, however do I also earn interest on the balance as well.

For example If I have £500 already in the account and add £1,000 which is 1%. Do I earn interest on £1,500?

Kind regards,

Jack
«13

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  • saintalan
    saintalan Posts: 562 Forumite
    edited 1 July 2015 at 7:04PM
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    Everyday you earn interest on the a/c balance at the specified AER.

    Do you know there are other regular saver accounts that pay @ 6% AER
  • Jackjack21
    Jackjack21 Posts: 96 Forumite
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    Thanks for your reply. I have found such accounts but they only let you deposit a certain amount of funds whereas this one is unlimited.
  • saintalan
    saintalan Posts: 562 Forumite
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    It may be better if you explained what you are trying to do as the advice shown on your other post looks pretty good.

    I cant quite see why you would want to pay in to a 2% regular saver when you could get between 3% & 5% in some current accounts.

    Its sometimes easier to tell the whole story then others can better help you.

    Cheers

    Alan
  • EarthBoy
    EarthBoy Posts: 3,041 Forumite
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    Jackjack21 wrote: »
    Thanks for your reply. I have found such accounts but they only let you deposit a certain amount of funds whereas this one is unlimited.

    It isn't unlimited. It's a maximum of £1000 per month.
  • Jackjack21
    Jackjack21 Posts: 96 Forumite
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    Hi sorry meant unlimited as the balance not the monthly deposit.

    Thanks for all your other replies and advice.
  • saintalan
    saintalan Posts: 562 Forumite
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    Jackjack21 wrote: »
    Hi sorry meant unlimited as the balance not the monthly deposit.

    Thanks for all your other replies and advice.

    Hi Jack, well it is not actually. It's 5 Million :)

    However I still can't see the advantage over the accounts that pay 3/4/5%.

    Maybe I am missing something?
  • Kernel_Sanders
    Kernel_Sanders Posts: 3,617 Forumite
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    edited 5 July 2015 at 9:49PM
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    Jackjack21 wrote: »
    I am aware that the interest rate depends on the amount of money deposited,
    The interest rate depends on the increase in the balance over the previous month. However I'm not sure whether that rate applies from the date in the month when the deposit was made.
    saintalan wrote: »
    Maybe I am missing something?
    The OP could have maxed out those accounts. Maybe it's the hassle of applying for current accounts.
  • colsten
    colsten Posts: 17,597 Forumite
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    Kernel_Sanders wrote: »
    The interest rate depends on the increase in the balance over the previous month. However I'm not sure whether that rate applies from the date in the month when the deposit was made.

    If the qualifying deposit is made during the month, the rate applies throughout the month
  • LXdaddy
    LXdaddy Posts: 693 Forumite
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    colsten wrote: »
    If the qualifying deposit is made during the month, the rate applies throughout the month

    Indeed it does. If you start the June with £100,000 in the account and on the 21st of the month you add £1,000 then the interest rate applicable to June is 2% (Gross AER). You would get 20 days worth of 2% interest on £100,000 and 10 days worth of 2% interest on £101,000

    Yes there are regular savier accounts with higher interest rates but they have lower monthly addition figures (typically £250 or £300) and generally only last for 1 year so are more limited in how much you can put into them.

    The Nationwide regular saver also allows withdrawals.
  • AlexMac
    AlexMac Posts: 2,990 Forumite
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    edited 6 July 2015 at 4:14PM
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    LXdaddy wrote: »
    Indeed it does. If you start the June with £100,000 in the account and on the 21st of the month you add £1,000 then the interest rate applicable to June is 2% (Gross AER). You would get 20 days worth of 2% interest on £100,000 and 10 days worth of 2% interest on £101,000...
    The Nationwide regular saver also allows withdrawals.

    You had me worried for a moment there Lexey dad, because I initially misread your advice so rechecked the T&C at
    http://www.nationwide.co.uk/products/savings/our-savings-accounts/all-savings-accounts
    which confirms (as you say) that you get the higher interest rate (not that 2% is high!) for the whole month if you increase the balance in the account by between £500 - £1,000 "in that calendar month".

    It's fiddly, as every month I have to top up, which is easy to do in seconds online if you also have a current or other account with them (you don't even need the card scanny thingy), but if you forgot, the interest that month would plummet to 0.25%; so it ain't for you unless you're organised.

    Now, where do I get these 6% deals?
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