Halifax Regular savings

nadiasidebottom

I have just had the anniversary of a 7% regular saver. I have for 12 months deposited £250 (the max) a month expecting £210.00 in interest. I have received £116. interest which I think is wrong. Before I go ahead and close two childrens regular savers which i am putting £100 a month each can anyone tell me and explain how the interest is worked out. I assumed you times the total amount deposited by 7% but obviously not. to me this is not a good savings rate am I right or wrong?

regularsaver1

No

The month will get 12 months worth of interest, the 2nd, 11 months .... and the last 1 month worth of interest.

It will be the same with the childrens one

YorkshireBoy

You've made a common mistake. This article will explain how these accounts work.

You'll earn 7% on your 1st deposit for the whole year.

Your second deposit will still earn 7%, but for only 11 months.

The last deposit only earns interest for 1 month.

The best way to 'roughly' work out your interest, if you've made the same deposit each month, is to use the following formula...

Closing balance/2 * 7%

Using your figures, this would equate to...

3000/2 * 0.07 = £105

The difference between £116 and £105 is probably just down to the dates you made your deposits.

arrowsmith

Also remember that the money has earnt interest while in another account before being transfered to the regular saver.

The regular saver is still the best rate you will get for small amounts, i'm sticking with them, but there is little point in transfering the full amount in the last 2-3 month as the interest lost while transfering will cover the increased rate over a standard savings account.

nadiasidebottom

thanks for response, the monthly money is what we get from wages every month has not had any interest on it, will contemplate regular savers again but take you note that it is not worth paying full amount in last months maybe just pay out minimum for last 3 months.

equitydealer

Here's a simple calculator from ING Direct. Wonderful way to calculate regular savings interest without having to do any maths!

https://secure.ingdirect.co.uk/calc/isa/isaNew.jsp

Looks like the amount you got was right. Looking forward to £167 next year from my Barclays 10% account