ISA or Savings

digivate

RayWolfe wrote: »

Of course they are!

Not if you want to invest a reasonable sum they're not due to the low limits that you can invest each month.

Over the course of a year you might be able to invest £3,000 but you'd only get interest on a balance of about £1,500 (the average balance throughout the year).

I'm not saying that regular savers aren't a good thing ... just not the right choice if you want to get the best return on an existing lump sum.

opinions4u

digivate wrote: »

Over the course of a year you might be able to invest £3,000 but you'd only get interest on a balance of about £1,500 (the average balance throughout the year).

Get a grip man. What about the interest you can earn on the money while it's not in a regular saver account.

The AER on a regular saver account is exactly what it says on the tin, for the days/weeks/months that it's saved there.

To suggest otherwise is simply not to understand a fairly simple concept.

RayWolfe

The man originally said "Except regular savers, which aren't really 5%!"
They really ARE 5% or whatever the AER says. Not 2.5%. Not a rip-off.
Use them properly. Understand them and rake in a very good rate of return ON THE MONEY YOU HAVE SAVED.
I currently have around 22k earning from 4.05% to 10%. Do you honestly think I am doing that because I'm bored?

natman

Sorry to jump on the regular saver bandwagon -
I agree - as long as you understand the concept it is fine. I suppose the only problem is you cant put in a block amount to begin with i.e £3600 as you can with an ISA, but if you have say £400 you can save everymonth, you really do get the rate that the account indicates in my case with the halifax regular saver 4%.

opinions4u

RayWolfe wrote: »

I currently have around 22k earning from 4.05% to 10%. Do you honestly think I am doing that because I'm bored?

Must have too much time on your hands Ray :rotfl:.

(Edit: oh, then again, I'm up to £12k earning 12% and a chunk more earning 6% lol).

RayWolfe

I know, I think I'll cash them all in and put them on a fixed rate bond at around 3%. Then I'll know exactly where I am ...

digivate

opinions4u wrote: »

Get a grip man.

Are you an argumentative moron on purpose or is it purely accidental?

opinions4u wrote: »

What about the interest you can earn on the money while it's not in a regular saver account.

The AER on a regular saver account is exactly what it says on the tin, for the days/weeks/months that it's saved there.

I've not disagreed with anything you've said. I merely pointed out that regular savers aren't the right choice if you want to inverst a large lump sum.

opinions4u wrote: »

To suggest otherwise is simply not to understand a fairly simple concept.

You clearly have a very high regard for your own intelligence, but that doesn't make other people idiots. I understand the concept of a regualr saver perfectly well ... but many people don't and so expect to receive the full interest on the final balance.

rb10

digivate wrote: »

I merely pointed out that regular savers aren't the right choice if you want to inverst a large lump sum.

This is very often wrong, as it depends on the rate that you are getting.

They can be worthwhile if you have a lump sum - Barclays are giving 6% on their Regular Saver, and you cannot get anywhere near that at the moment anywhere else. I have a Regular Saver at 12% (opened last June, when other rates were around 6%).

If you have a lump sum and are prepared to go to a little bit of effort, the higher rate that you get can be very profitable indeed.

opinions4u

digivate wrote: »

Are you an argumentative moron on purpose or is it purely accidental?

Quite deliberately picked an argument on your point, as your point was misleading and wrong. Call me a moron if you like, it serves little purpose.

I've not disagreed with anything you've said. I merely pointed out that regular savers aren't the right choice if you want to inverst a large lump sum.

You stated that you only earn interest on half the money invested. Nonsense.

"Over the course of a year you might be able to invest £3,000 but you'd only get interest on a balance of about £1,500 (the average balance throughout the year)."

You get interest on the amount saved for the time saved. Don't try to imply otherwise.

You clearly have a very high regard for your own intelligence, but that doesn't make other people idiots. I understand the concept of a regualr saver perfectly well ... but many people don't and so expect to receive the full interest on the final balance.

I have a low regard for somebody saying something misleading and wrong.

digivate

opinions4u wrote: »

Quite deliberately picked an argument on your point, as your point was misleading and wrong.

I can see that you're the kind of person that could start an argument in an empty room.

opinions4u wrote: »

You stated that you only earn interest on half the money invested. Nonsense.

That's strange... I don't remember using those actual words. I was actually implying that you can't expect to receive the interest on the full balance of an account as it stands at the end of the year.

Due to the drip feeding process you'll only receive interest on roughly 50% of the final balance.

This is a fact, and it's only your willful misreading of what I've said that causes any argument.

digivate wrote: »

"Over the course of a year you might be able to invest £3,000 but you'd only get interest on a balance of about £1,500 (the average balance throughout the year)."

opinions4u wrote: »

You get interest on the amount saved for the time saved. Don't try to imply otherwise.

I haven't implied anything. Have another read of the statement I made, but this time try not to read between the lines of what's actually written (therefore skewing my words though the prism of your own superiority complex) and you'll see that what I've said is actually 100% correct.

I've seen threads on this forum where people question why the annual interest on their regular saver accounts has turned out to be half of what they expected. If you invest £250 a month (£3,000 over the course of a year) in an account with a 10% interest rate you won't get a 5% return on all £3,000 (£300) ... you'll get a 10% return on roughly £1,500 (approx £150) as that is the average amount in the account over the course of the year.

opinions4u wrote: »

I have a low regard for somebody saying something misleading and wrong.

I have an equal disregard for people that argue over points that weren't even made in the first place.