Bradford & Bingley esavings issue 7

Catlover18

max11 wrote: »

Yes, probably monthly rates are slightly lower because they give the money before or because they calculate also the "new" money, earned by interests (or don't know if, when they calculate daily interests, consider also the small amount of interests earned day by day.


Excuse me, as I'm in the same situation (chhosing among B&B, A&L and 3.26%) what do you mean with "a lot more work"? more than 24 hs is a long time?
So which one do you recommed to me? to go for B&B? I wasn't able to find many feedback on thatt citybank account.


will I have the 3% also on the first £1k? the doesn't say a clear word

thank you

Hi,

I would be interested to know the answers to these questions too as i'm trying to decide what to do for a savings account. So if anybody knows i'd appreciate any advice.

As i intend to withdraw a large amount of money around August time from most of my savings accounts, i'm assuming it is better for me to accrue monthly interest?

In which case, do you know which account would be best as i know A&L is annually?

Does annual interest literally mean that it will be added in a lump sum at the end of the year? And does monthly interest mean you get 3% on whatever your balance is at the end of the month (e.g., 3% on £1,000 at the end of the month)?

Many thanks.

Baldur

Catlover18 wrote: »

Does annual interest literally mean that it will be added in a lump sum at the end of the year?

Yes, or on a date specified in the terms & conditions of the account

And does monthly interest mean you get 3% on whatever your balance is at the end of the month (e.g., 3% on £1,000 at the end of the month)?

No, the 3% is the ANNUAL rate, so the interest on £1000 @ 3%AER for a full 31 day month would be very roughly calculated as ((1000*3%)/365)*31 = £2.55 gross, then tax would be deducted at 20%, giving net monthly interest of £2.04.

evenasus

If you put £1000.00 in the B & B issue 7 for one month, you would receive £1.98 (2.96% pa) interest, that is if you're a basic rate tax payer.
You would receive 3% per year on any money over and including £1000.00.

Hope that helps.

EalingSaver

I may be missing something in these posts but...

- Where annual or monthly interest options are given, providing the AER rate is the same for both it makes no difference in regards to what interset you will earn. Just check the AER figures for the two options.
- If you are intending to only hold the account for a short period of time, then still doesn't matter, because if you close the account all interest earned to date must then be credited (even if annual option and close in say 6 months)
- One difference is of course that if you intend to draw down on the account but not close it then you may want access to the accrued interest, in which case you want the monthly option. If there is a minimum balance involved e.g. £1k as in case of B&B then this really doesn't come into play

B&B definitely a LOT easier to open, especially if you are already a B&B online customer. A&L accounts I have opened in the past have been a nightmare. Despite being a customer I still have to supply identificaiton etc. etc. Took me 2 months to get an eSaver issue 2 open with A&L; I think they were on issue 4 before it was activated !!!! How can two banks in the same 'family' have such widely differing 'governance' requirements for the same money laundering legislation???

Catlover18

EalingSaver wrote: »

- One difference is of course that if you intend to draw down on the account but not close it then you may want access to the accrued interest, in which case you want the monthly option. quote]

Yes, this is the case for me hence why i thought the monthly interest would be better.

I have, however, been looking at Yorkshire BS Internet-saver as you get penalised if you're balance goes under £1,000 at B&B and i may need to take all my savings out, which i can do with Yorkshire BS. However, i notes this in their key facts:


Interest

The rate of interest for the Internet Saver is variable. Interest can be added to your account annually on the 31st March or it can be paid monthly on the last day of the month, but must be paid into another Yorkshire Building Society account or an external account held with another bank or building society.

Does anybody know why this is? Is this so you don't earn interest on their interest? My understanding of this is that i will need to supply them with details of one of my other bank accounts for the interest to be deposited into this - is that right? I've never heard of anything like that before and thought it was quite strange but then i am new to this savings world!

Wanted to say thanks to everybody for their advice.

savetilibleed

[quote=Catlover18;20074937Interest

The rate of interest for the Internet Saver is variable. Interest can be added to your account annually on the 31st March or it can be paid monthly on the last day of the month, but must be paid into another Yorkshire Building Society account or an external account held with another bank or building society.

Does anybody know why this is? Is this so you don't earn interest on their interest? My understanding of this is that i will need to supply them with details of one of my other bank accounts for the interest to be deposited into this - is that right? I've never heard of anything like that before and thought it was quite strange but then i am new to this savings world!

Wanted to say thanks to everybody for their advice.[/quote]

All savings accounts are linked to either another account with the same institution or an external bank/building society account. When/if you open a YBS Internet Saver, the initial deposit needs to be a cheque from your linked bank account. This is normal and it "proves" the info you gave them about your bank account is correct. Once the account is set up you can add other linked accounts (most BS don't have this handy option) for transferring money out to. But only one account (your bank account) will be the one that receives monthly interest. Other institutions set uo a direct debit that pulls payment in from your bank account that you want to make (which can be one off's of regular) and pushes payments out that you make to your bank account.