Saffron 7% ISA ... Loading the Dice

Robert_Sterling_3

Saffron ..... The new user friendly name for the Saffron Walden Building Society.
ISA pays 7% p.a. as a Regular Saver Max input £300 per month maximum.

Read the small print
This table which I have printed shows what happens.

It shows that you earn about £35 interest in the first six months and about £100 interest in the second six months if you put in £300 per month

[ Sorry: The table looked as if it was OK when I inserted it but in fact most of the columns were off the page to the right ]

rb10

I don't see what your point is here ... you would obviously earn more in the second six months, when the balance is higher, than when you have a lower balance, during the first six months.

But overall, your calculations of £35 + £100 give £135, which is the advertised 7%. So at the end of the whole year, you've earnt the full whack of 7%, regardless of when it was accrued.

(I can't see a table in your post, btw).

PinkPig

Not sure what you're getting at here. There's more money in the account for the second half of the year, so you earn more interest then. You would expect to earn 7% on about half of the balance (roughly the average over the year) - which does come to £130 or so overall. Nothing surprising or controversial there.

If you have a lump sum, then keep the balance of the money in the best available instant-access savings account until you pay it into the regular savings account to maximise your interest.

Mikeyorks

I'm not sure the logic is right. It's a fixed rate ISA ... which you blow if you don't maintain the payments? So whilst the interest is calculated daily ... it's nevertheless only attributable to the entity of the full year. So it's a bit irrelevant to compartment it. But even more irrelevant ...... in that it is no longer available - nationally - with effect from yesterday?

But for people with new money and (ideally .. although there was a way around this) not worried about tying up both this and next year's allowance .... it wasn't a bad deal in comparison to what else is available currently. But fairly well covered in last week's Email -
http://www.moneysavingexpert.com/savings/best-cash-isa#regular