Opened reg saver with barclays today

Tibbledom

oldfella wrote: »

If you work out what 12 payments of £250 on 18/12/08, 18/1/09…18/11/09 earn at 7.75% interest to 18/12/09 you should agree this is around £124.55 gross.

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I think this is where we are missing each other - I am purely trying to prove that you maximise your interest by making the first deposit at the end of the month, with subsequent on the 1st.

you might reduce this gain as you suggest - but in my case I deposit into the RS straight out of income received not a savings account, so there is no arguement for a reduction. I dont see the value in receiving 4% when I could have got 7.5% ?

Fair enough but if you have the £250 available from income on 1/1/09 then of course you can invest it for 17 days (albeit at a lower rate) if you don't have to pay it in until 18/1/09.
But I think we have come to agreement. :T

i.e. it is worthwhile to get the money in as soon as you can in the month but don't expect to make a huge extra gain from it. I have 4 regular savers and I have the same payment date of 15th for all which works practically for me but doesn't maximise interest but the loss is not great.

Still don't know if we are getting 6% or 7.75% which is far more crucial (worth £22 in fact) but I can live with the 6%

oldfella

yep we agree

you are making a different point though - my arguement was that you gain by investing late in the first month, and then as early as possible in following months. As you rightly say, the majority of that gain comes from investing late in the first month as that increases the time the largest amount earns interest.