please help clarify the following point

mint

Martin says (in this article: http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1108401263,93536):

QUOTE
To invest a lump sum using the Derbyshire or Halifax, put the money first in a standard savings account (Best Savings Account Article) then make monthly payments from there to the Regular Saver.

Make the maximum payments in the first months to get the cash in quickly, whilst ensuring there's always enough left to keep up the minimum payments for the year. This way your money trickles across and you always meet the terms and conditions.

Not all savings accounts allow you to set up a standing order so you can drip feed your cash, so check out whether or not yours will.
UNQUOTE

He then says (in the same article):

QUOTE
Thus the £3,000 is at one time earning interest both from the standard interest paying account and the Regular Saver – which together should always substantially outperform a normal account.
UNQUOTE

I ask: how does this work? How is it possible to have the same amount earning interest from two different accounts. I would be grateful is somebody would please explain this to me.

Many thanks

Mint

homersimpson_3

Thus the £3,000 is at one time earning interest both from the standard interest paying account and the Regular Saver – which together should always substantially outperform a normal account.

agreed this could be better worded.
regular savings account can pay high rates of interest but there are max limits which are allowed to deposit each month e.g. - a&l 10% £250 max each month, b&b 10% but only £150 per month etc
so you put the full amount you want to deposit in the best standard savings account -and then each month transfer max from this account into regular savings account. the money earns interest in standard account whilst waiting to be transfered into regular savings account. (hence term drip feeding). you gain more because you receive higher rate from regular savings account rather leaving all money in standard savings account which usually pay 2-5% interest.

grumbler

mint wrote:

I ask: how does this work? How is it possible to have the same amount earning interest from two different accounts. I would be grateful is somebody would please explain this to me.

It is not the same amount. It is total amount in two accounts. When monthly portions are transferred from one account to another, both balances change, but total amount remains the same.

mint

Now I understand - many thanks for your replies.