Please confirm my calculations are correct.

sloughflint

YorkshireBoy wrote: »

Drip feed account interest:

£6,000 x 6.5% / 12 x 5.5 = £178.75

Reg Saver interest:

£6,000 x 12% / 12 x 5.5 = £390.00

Total interest = £568.75

£6,000 x 12% / 12 x 6.5= £390.00

Mikeyorks

sloughflint wrote: »

No equates to 8.01%:

And further increases to 8.5% if you deposit £5k into a joint Guaranteed Saver ..... and then run 2 x individual RSs (at 12%) on the strength of that.

jamieslucky7

Although I will be drip feeding £500 in to my 12% RS from my 6.5% KE, I also plan to put £500 in to my KE every month from my income. After reading the replies I find myself a little confused. [STRIKE]After many of my own calculations I have concluded that the RS route should get me a fair bit of extra interest, so I think I will open the Halifax RS (and saver reward at 6.5% to get my RS up to 12%).[/STRIKE] Thanks for the input!

After more obsessing, it turns out I will only earn an extra £21 interest using the RS drip.

sloughflint

jamieslucky7 wrote: »

Although I will be drip feeding £500 in to my 12% RS from my 6.5% KE, I also plan to put £500 in to my KE every month from my income. After reading the replies I find myself a little confused. [strike]After many of my own calculations I have concluded that the RS route should get me a fair bit of extra interest, so I think I will open the Halifax RS (and saver reward at 6.5% to get my RS up to 12%).[/strike] Thanks for the input!

After more obsessing, it turns out I will only earn an extra £21 interest using the RS drip.

Maybe it's too early but I just don't get what you are saying. If you have spare £500 income, surely that goes to the RS and you just don't touch what's in your KE account ?
( apart from funds going to the guaranteed saver or fixing some at a higher rate)

Have reread your posts but not sure how much you have in KE at the moment.
Surely the idea would be:
£500 spare monthly income to 12% RS
Use £5000 from your KE account to open a guarateed saver 6.25%
Rest in your BM fixed account.... assuming you won't need access to any of this money otherwise KE offers flexibility and accessibility.

jamieslucky7

sloughflint wrote: »

Maybe it's too early but I just don't get what you are saying. If you have spare £500 income, surely that goes to the RS and you just don't touch what's in your KE account ?
( apart from funds going to the guaranteed saver or fixing some at a higher rate)

Have reread your posts but not sure how much you have in KE at the moment.
Surely the idea would be:
£500 spare monthly income to 12% RS
Use £5000 from your KE account to open a guarateed saver 6.25%
Rest in your BM fixed account.... assuming you won't need access to any of this money otherwise KE offers flexibility and accessibility.

I'm not guaranteed to have £500 spare income each month so by taking money from KE im guaranteed to be putting £500 in the RS each month. Any income I have left at the end of the month will be put in to my KE. Could be £500+/-.