How little interest? Yorkshire Bldg Soc Saver

Suzkin

My passbook for the Regular Saver was updated today. This started out at 7% variable for 1 year.

I'm shocked to see that after putting in £10 each month, plus £50 for one of the months, after 1 year my passbook entries say:

I gained only £2.98 bonus interest (think this is the 2% bonus if funds are left untouched), then £0.59 tax deducted, and then £2.62 gross paid, and then £0.52 tax deducted.

This is so little. They told me this afternoon that the interest rate is currently 4.25%

Can these low figures really be true??

Stompa

Suzkin wrote: »

Can these low figures really be true??

I'm afraid so.

bristolleedsfan

Suzkin wrote: »

My passbook for the Regular Saver was updated today. This started out at 7% variable for 1 year.

I'm shocked to see that after putting in £10 each month, plus £50 for one of the months, after 1 year my passbook entries say:

I gained only £2.98 bonus interest (think this is the 2% bonus if funds are left untouched), then £0.59 tax deducted, and then £2.62 gross paid, and then £0.52 tax deducted.

This is so little. They told me this afternoon that the interest rate is currently 4.25%

Can these low figures really be true??

Yes, considering your low monthly deposits.

Milarky

I think that I averaged about 6.5% for the year in my account. The rate was at (6.35% for May to October for instance) but this was achieved by making my one permitted withdrawal down to £10 in June - so I effectively earned all my accumulated interest in the first half of 2008.

Suzkin

Thanks Milarky - it's interesting how the interest is simply calculated without the bank indicating what the interest rates were at particular times during the year.

Also, I recall Martin suggesting that if poss, to put in higher amounts at the start of the year..

bristolleedsfan

Suzkin wrote: »

Also, I recall Martin suggesting that if poss, to put in higher amounts at the start of the year..

So as to get 12 months interest on as high a deposit that is permissible by either T+C or individual means, the best benefit of regular savers doesnt occur until after the first year and even then is still dependent on the balance that has been built up.

Suzkin

Yes - I guess you're right! Unless anyone wishes to say otherwise...but I think that's correct.

Suzkin

Sorry!! I thought you were sort of asking a question - not stating a fact, which you are, and so thank you!

Mr_K

Lots of people are disappointed when they realise how little regular savers actually pay. Personally I don't bother with them. People are dazzled by the seemingly high interest rates which are largely meaningless. More important is how much you can deposit and for how long, which of course they restrict.....

bristolleedsfan

Mr_K wrote: »

More important is how much you can deposit and for how long, which of course they restrict.....

500.00 maximum deposit a month with maximum term being maximum overall deposit of from memory 20000.00 was very generous terms in most opinions including mine. ( Issue 1 im referrring to as thats the issue that is being discussed)

Hungerdunger

Suzkin wrote: »

Thanks Milarky - it's interesting how the interest is simply calculated without the bank indicating what the interest rates were at particular times during the year.

Unfortunately it's really up to the saver to keep abreast of these. The YBS Ts and Cs say they will notify you of a change of rate:

by displaying ... notices in our branches, by placing advertisements in national newspapers of our choice, ... and by having the rates available on our telephone helpline and on our website.

Armed with this info, it's not too difficult to work out roughly how much interest to expect.