RBS 5% Regular Saver From 27/7

Biggles

C_Mababejive wrote: »

Regular savings are a mugs game and the latest con trick from the banks..

It's not exactly the 'latest trick', they've been around for years. And I'd certainly prefer 5% or even 4% on a regular saver to the 0%-2½% that you'll get on 'normal' savings accounts.

Dagobert

This thread is specifically about the RBS regular saver (2009).

pressuredrop_2

You open the account late July '09 and make the first payment. The payment is effective from August 1st '09. You make the second payment on August 1st '09 which is effective from September 1st '09. You are always a month behind and, I assume, receiving nominal interest on some of your money at some stage.

That is how I recall both NatWest and RBS RS's.

Dagobert

pressuredrop wrote: »

You open the account late July '09 and make the first payment. The payment is effective from August 1st '09. You make the second payment on August 1st '09 which is effective from September 1st '09. You are always a month behind and, I assume, receiving nominal interest on some of your money at some stage.

The RBS T&Cs (36) do not mention any interest delays.

The internal document I received states "Interest is calculated daily".

pressuredrop_2

36.3.

As my previous post, you are a month behind. Thus, all money not receiving full interest or any interest.

jimbow25

pressuredrop wrote: »

36.3.

As my previous post, you are a month behind. Thus, all money not receiving full interest or any interest.

How is this supposed policy consistent with the above "interest is calculated daily"?

I don't think paragraph 36.3 clarifies this. If the first deposit attracted no interest because it was before the 12 month term started (seems odd that they would accept it?) that's one thing, but I don't see that every payment thereafter is "a month behind".

pressuredrop_2

jimbow25 wrote: »

How is this supposed policy consistent with the above "interest is calculated daily"?

I am not aware of any account that makes you wait 30 days to earn interest. Any that did should surely say so in the terms and conditions?

RBS might be "a month behind" but that doesn't mean they're right.

36.3 states that money paid in will not earn any interest until the first of the following month.

Open account on September 1st, make payment of £250 on September 1st, and the money does not start to earn interest until October 1st.

Them's the rules, like 'em or not.

pressuredrop_2

jimbow25 wrote: »

but I don't see that every payment thereafter is "a month behind".

You have a £500 balance after two payments of £250 and you are earning interest on £250 not £500. The following month you have a balance of £750, after making a payment of £250, and you are earning interest on £500 not £750.

As I previously stated, a month behind.

jimbow25

pressuredrop wrote: »

36.3 states that money paid in will not earn any interest until the first of the following month.

I'm not sure if by "money paid in", you mean the first deposit or every deposit - But, that rule defines the start and end date of the term.

If you mean, the first deposit earns no interest, then 1 deposit for 1 month is only about £1 of interest so it doesn't explain the discrepancy or £10 or so.

If you mean, every deposit earns interest a month late, you are certainly wrong as this rule says nothing about subsequent deposits and when they earn interest and this is contrary to how any account would be expected to calculate interest. The rules governing interest appear to be 36.6 to 36.8 and they also don't say this.

Dagobert

36.3 specifies the term of the account, not on what interest is paid.

None of the paragraphs 36.x state when they start paying interest.

The fact sheet I received (which was intended for their staff) stated that interest is calculated daily.