Which will earn me more?

Fernacho

Hi,
I wanted to know, what will earn more?
If I have £6k, would I earn more by putting it in a Halifax monthly saver with 7%AER interest. Taking £500 each month from total
or
Putting all of it into a 1 year fixed bond with a 6%AER interest rate?
Already have a cash ISA

Cheers

Baldur

Fernacho wrote: »

I wanted to know, what will earn more?
If I have £6k, would I earn more by putting it in a Halifax monthly saver with 7%AER interest. Taking £500 each month from total
or
Putting all of it into a 1 year fixed bond with a 6%AER interest rate?
Already have a cash ISA

Try plugging your figures into this site's Savings Calculator.

sarcastically_optimistic

I,ve just tried the calculator with a lump sum investment and got his message :huh:


After saving £0 a month for 6 months,
you will have £NaN in savings.

ExBanker_2

It depends where the £6000 is held until its fed into the monthly saver, if its in a low interest account then the fixed bond is way better.

For lump somes of money your going to be better putting it in a bond or high interest account. Monthly savers are only good for people who dont have the money in the first place, they just want to take a bit out of their wage each month...

beacuse you'll only be earning the 7% on £250 when the money goes into the monthly saver. So you'll earn a 7% for 12 months on the first £250, 7% for 11 months on the next £250, 7% for 10 months on the next £250 etc etc.. working out at a pathetic £180 of interest from the monthly saver for the average tax payer.

Or £280 for the fixed rate bond!