A&L and Barclays 10% savings acc

jimclark1967

siuron wrote:

o well, openning a current acc with them is not a problem, but does it need to be like barclays where u have to have atleast £1000 going in a month?

You need to have £500 per month going in but this doesn't have to be your salary.

I just have a standing order from my Lloyds TSB current account. Once it arrives in A&L Premier Direct account half goes to the regular saver and the other £250 to wherever it's needed at the time.

JC

Ted_Bloke

Anthony_MK wrote:

I had a quick look on the A&L webiste and it seemed to suggest you do. I've just looked again and:



Q. How can I open a Premier Regular Saver?

A. Premier Regular Saver can be opened as part of a new Premier or Premier Direct Current Account application.
Visit Premier Regular Saver for more information.

IMO good product, poor site, not surprised you're confused, check up on a thread I started.

Plasticman

yesbutnobut wrote:

Yes, you're a basic rate tax payer, as is anyone earning less than £37,295 p.a. (but more than £6,985) in tax year 2006/2007.

That was for 2005/6. In 2006/7 the personal allowance is £5,035 so the 40% threshold is £38,335 for most people under 65.

finder

Innys wrote:

Correct. If you can afford it, you should usually invest in an ISA first and only then, if you have any spare cash, consider one of these regular saver deals.

I agree that if you just have £3000 to invest straight away the ISA option is the easiest one in order to get a good return. It is not the optimum though.

In the A&L case, going for the 10% monthly Saver option along with the Online Saver Account, Issue 2, currently paying 4.25%, will leave you better off. As I have read elsewhere in this forum, you put the £3000 into the online saver which you´ll use to drip-feed you Monthly Saver Account every month with £250. If my calculations are OK, this way will leave £227 (gross) in your account at the end of the 12 month period (= £177 Net, after substracting 22% for tax purposes). This amount beats the £156 gained by the ISA 5.2% account (although, with a little bit more of hassle).

Hope this helps

sloughflint

finder wrote:

I agree that if you just have £3000 to invest straight away the ISA option is the easiest one in order to get a good return. It is not the optimum though.

In the A&L case, going for the 10% monthly Saver option along with the Online Saver Account, Issue 2, currently paying 4.25%, will leave you better off. As I have read elsewhere in this forum, you put the £3000 into the online saver which you´ll use to drip-feed you Monthly Saver Account every month with £250. If my calculations are OK, this way will leave £227 (gross) in your account at the end of the 12 month period (= £177 Net, after substracting 22% for tax purposes). This amount beats the £156 gained by the ISA 5.2% account (although, with a little bit more of hassle).

Hope this helps

Haven't checked your calculations but you need to use 20% not 22% for tax.

alecpr

Hi,

Here are my figures for your return on a 10% savings account with a £250 max monthly contribution, assuming you have the £3000 total investment at the beginning of the period in a good current/savings account.

Current Account

Rate 5%

1 £2,750.00............£2,761.46
2 £2,511.46............£2,521.92
3 £2,271.92............£2,281.39
4 £2,031.39............£2,039.85
5 £1,789.85............£1,797.31
6 £1,547.31............£1,553.76
7 £1,303.76............£1,309.19
8 £1,059.19............£1,063.60
9 £813.60...............£816.99
10 £566.99...............£569.36
11 £319.36...............£320.69
12 £70.69.................£70.98

Savings Account

Rate 10%

1 £250.00...............£252.08
2 £502.08...............£506.27
3 £756.27...............£762.57
4 £1,012.57............£1,021.01
5 £1,271.01............£1,281.60
6 £1,531.60............£1,544.36
7 £1,794.36............£1,809.32
8 £2,059.32............£2,076.48
9 £2,326.48............£2,345.86
10 £2,595.86............£2,617.50
11 £2,867.50............£2,891.39
12 £3,141.39............£3,167.57


Total Intrest : 238.55
Rate on Money : 7.95% Gross (6.36% Net)

The rate is better than an ISA over the 12 months, although after the 12 months, if you plan on saving or adding too the £3000 long term and you have not got an ISA then the ISA route is the way to go.

If it's purely £3000 you plan to spend in 12 months or you have already used up your ISA allowance then the 10% account has the best return.

According to my calulations anyway, hope that helps :-)