Halifax Regular Saver a/c dodgy figures?

MrBen_4

My regular saver a/c with Halifax recently 'matured' I was putting in £100 per month for 12 months. The 12th payment went in and a few weeks later came the maturity date. All it was was £35? on £1200? That can't be right, I understand a percentage is deducted for tax, but stil..

The balance on my websaver is now £1,235..

Careful_ly

Mr Ben
Sorry to tell you but this is correct amount of interest at the 7% rate on £100 monthly

Careful_ly

grumbler

MrBen wrote:

...That can't be right, ..

Average balance during a year is about £650.
£650*7%=£45.50
£45.50-20%=£36.40

If you prefer more details: monthly rate is 1.07^(1/12)-1=0.57%

100.00_0.57

200.57_1.13

301.70_1.71

403.41_2.28

505.69_2.86

608.55_3.44

711.99_4.03

816.01_4.61

920.63_5.21

1025.83_5.80

1131.63_6.40

1238.03_7.00

1245.03

zag2me

Thats why they can offer such good rates on regular savers. because for most of the year you hardly have any money in it! Personally I use regular savers as a way of disiplining myself into saving a set amount each month. I do the full amount of 250 a month and at the end of it I will have 3000 in savings the interest is nice but its the lump sum of my own money at the end that is the bonus. This then goes into my ISA for better rates.

kenshaz

the limit of £250 a month is the downside,but it is head-line catching on adverts,only useful as part of the savings fountain,in Martins article

david78

Totally agree, use these accounts wisely to build up lump sums, but store the lump sums in an ISAs if you can.