Help required with Halifax 10% Regular saver

LongTermLurker

LucyTheDwarf wrote: »

So, if you drip feed, you'd get £325 from the Regular Saver, plus the £178.75 from the high interest savings account, resulting in total interest of £503.75. Average rate about 8.4%.

I knew someone would be along soon, and nicely formatted too

(edit - bizarre - I posted AFTER Lucy and it put my response above her... I shouldn't have said that, I could have pretended I had a preminition about what she was going to type )

LucyTheDwarf

Halifax Regular Saver............................... High Interest Savings Account (drip feeder)
Date Deposit Months Interest (10%)......... Date Deposit Months Interest (6.5%)
01/01/2008 £500 x 12/12 = £50.00......... 01/01/2008 £500 x 11/12 = £29.79
01/01/2008 £500 x 11/12 = £45.83......... 01/02/2008 £500 x 10/12 = £27.08
01/01/2008 £500 x 10/12 = £41.67......... 01/03/2008 £500 x 9/12 = £24.38
01/01/2008 £500 x 09/12 = £37.50......... 01/04/2008 £500 x 8/12 = £21.67
01/01/2008 £500 x 08/12 = £33.33......... 01/05/2008 £500 x 7/12 = £18.96
01/01/2008 £500 x 07/12 = £29.17......... 01/06/2008 £500 x 6/12 = £16.25
01/01/2008 £500 x 06/12 = £25.00......... 01/07/2008 £500 x 5/12 = £13.54
01/01/2008 £500 x 05/12 = £20.83......... 01/08/2008 £500 x 4/12 = £10.83
01/01/2008 £500 x 04/12 = £16.67......... 01/09/2008 £500 x 3/12 = £8.13
01/01/2008 £500 x 03/12 = £12.50......... 01/10/2008 £500 x 2/12 = £5.42
01/01/2008 £500 x 02/12 = £8.33......... 01/11/2008 £500 x 1/12 = £2.71
01/01/2008 £500 x 01/12 = £4.17
Total £6000 £325.00 Total interest £178.75

So, if you drip feed, you'd get £325 from the Regular Saver, plus the £178.75 from the high interest savings account, resulting in total interest of £503.75. Average rate about 8.4%.

LucyTheDwarf

LongTermLurker wrote: »

I knew someone would be along soon, and nicely formatted too

Ha, looks like you predicted I was going to post.

LongTermLurker

LucyTheDwarf wrote: »

Ha, looks like you predicted I was going to post.

LOL - good, aren't I

Gambit

LucyTheDwarf wrote: »

Total £6000 £325.00 Total interest £178.75

So, if you drip feed, you'd get £325 from the Regular Saver, plus the £178.75 from the high interest savings account, resulting in total interest of £503.75. Average rate about 8.4%.

Thanks for that Lucy as those figures helped me too! :beer:

This doesnt take tax into account though does it? Do you know a simple formula that I can use which takes tax into account too as I'm trying to do a spreadsheet with all this info in there. Thanks in advance...

YorkshireBoy

The first payment of £500 is in the regular saver account for the whole year. Therefore the interest earned for this payment is an easy £500 x 10% = £50. Lucy has shown it as 12/12ths so her subsequent figures follow on.

The second payment is only in there for 11/12ths of a year, ie 11 months. The formula here is therefore...

£500 x 10% / 12 x 11 = £45.83

The 8th payment is only in the account for 5 months, so...

£500 x 10% / 12 x 5 = £20.83

All figures (and those Lucy gave) are gross.


Rather than use a spreadsheet, the easiest way to calculate the overall gain (for £500 per month) is...

Reg Saver.....£6000 x 10% / 12 x 6.5 = £325.00
Feeder Acc...£6000 x 6.5% / 12 x 5.5 = £178.75

If you do use a spreadsheet (because you want 100% accuracy) then you probably should calculate the interest daily (365 rows!!!)...because that's what the banks do. Overkill, I think you'll agree?


EDIT: You've added another question since I started typing. Simply multiply your gross interest by 0.8 for your net figure.


SECOND EDIT: Now you've modified/removed your original question (which I forgot to quote), so I'm not sure you now realise how Lucy came by the figures...or if my post is now helpful?

Gambit

YorkshireBoy wrote: »

EDIT: You've added another question since I started typing. Simply multiply your gross interest by 0.8 for your net figure.


SECOND EDIT: Now you've modified/removed your original question (which I forgot to quote), so I'm not sure you now realise how Lucy came by the figures...or if my post is now helpful?

Yeah sorry about that but I worked it out and as I didnt think anyone read my post yet amended my question without stating my edit reason.
Sorry but thanks for that breakdown and thanks for letting me know how to figure out the interest rate after tax! :beer:

Sunny2good

YorkshireBoy wrote: »

Rather than use a spreadsheet, the easiest way to calculate the overall gain (for £500 per month) is...

Reg Saver.....£6000 x 10% / 12 x 6.5 = £325.00
Feeder Acc...£6000 x 6.5% / 12 x 5.5 = £178.75

where did the 6.5 and 5.5 mentioned above in bold came from ?

sorry but could not understand it from the post.

Thanks,

Sunny