MSE News: Regular savers can now earn 5.5% (Buckinghamshire BS)

edited 14 May 2012 at 10:37AM in Savings & Investments
16 replies 2.3K views
Former_MSE_GuyFormer_MSE_Guy Former MSE
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edited 14 May 2012 at 10:37AM in Savings & Investments
Please note this News Story was published in 2009 so this rate is no longer available

This is the discussion thread for the following MSE News Story:

"Savers who can make regular monthly deposits can earn the unbeatable rate from Buckinghamshire Building Society, fixed for a year ..."
Read the full story:
Regular savers can now earn 5.5%

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Replies

  • As has been mentioned before, you guys are sure fast ......
  • BenLBenL Forumite
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    I printed the paperwork off for last weeks issue 1 at 6.25% then forgot to sort it out missing the deal. Booo
    I beep for Robins - Beep Beep
    & Choo Choo for trains!!
  • What does a current saving accounts rate need to be to work out beneficial to change?

    I understand with this account you can only pay £250 one month, then again so it's £500 for two months etc. I end up, after 12 months, with £89 gross profit.

    Am I right in calculating £3000 in a 2.9% (Gross) account is the same, leaving you with £89 profit roughly?

    I cannot remember the exact interest rate on my current easy access savings account but I think it is around 3% (Gross)

    So really, with this account, I don't gain anything but lock my money away? Am I correct?
  • edited 14 September 2009 at 5:48PM
    nohnoh Forumite
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    edited 14 September 2009 at 5:48PM
    forgery wrote: »
    What does a current saving accounts rate need to be to work out beneficial to change?

    I understand with this account you can only pay £250 one month, then again so it's £500 for two months etc. I end up, after 12 months, with £89 gross profit.

    Am I right in calculating £3000 in a 2.9% (Gross) account is the same, leaving you with £89 profit roughly?

    I cannot remember the exact interest rate on my current easy access savings account but I think it is around 3% (Gross)

    So really, with this account, I don't gain anything but lock my money away? Am I correct?

    No. You are not correct.
    Read the MSE article here:-
    http://www.moneysavingexpert.com/savings/best-regular-savings-accounts
    After one year.
    If you paid £250 a month into your 3% easy access account you would have £48 interest.
    If you paid £250 a month into an account at 5.5% you would end up with £89 interest.
    If you had £3000 in your 3% account for 1 year you earn £90 interest.
    If you start off with £3000 in your easy access account and drip feed £250 a month from it to the 5.5% regular saver you will earn roughly £130.

    So as you can see it is always benefical to use the regular saver.
  • nicko33nicko33 Forumite
    1.1K Posts
    forgery wrote: »
    Am I correct?
    No.

    £3000 at 2.9% for 12 months
    total gross interest £87

    What you should compare the £3000 at 2.9% for 12 months to is:
    month 1: £2750 at 2.9% + £250 at 5.5%
    month 2: £2500 at 2.9% + £500 at 5.5%
    month 3: £2250 at 2.9% + £750 at 5.5%
    etc.
    total gross interest £129

    see the drip-feeding calculator
    http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#savingscalc
  • stonemanstoneman Forumite
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    RayWolfe wrote: »
    As has been mentioned before, you guys are sure fast ......
    Wow, sarky!! I am sure these only become news items because they are spotted on the forums anyway, but because a lot of people do not scan the boards they are flagged up for people who might not have seen it.
    Grow up.:rolleyes:
    The common law of business balance prohibits paying a little and getting a lot. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will have enough to pay for something better.
  • stoneman wrote: »
    Wow, sarky!! I am sure these only become news items because they are spotted on the forums anyway, but because a lot of people do not scan the boards they are flagged up for people who might not have seen it.
    Grow up.:rolleyes:

    There is an arguement to say that where an item is already being discussed in a thread, maybe the story link should be posted in that thread, rather than just creating a new one
  • stoneman wrote: »
    Wow, sarky!! I am sure these only become news items because they are spotted on the forums anyway, but because a lot of people do not scan the boards they are flagged up for people who might not have seen it.
    Grow up.:rolleyes:
    You seem to have missed my main point that if they were on the ball, they might have advised people about issue 1 which paid 6.25% rather than wait until it's withdrawn ... last TUESDAY!
    So grow up yourself Na Na NA Nana.
    Oh that's better, meanwhile perhaps you know of any other good accounts, if so give us all the good news.
  • Thank you Nicko and Noh for your explanations, I never would have seen it that way. Shame I missed issue 1 but while this option is here, I guess there is no reason not to take it. Can't really beat 5.5% for only 1 year at this moment in time.
  • BigglesBiggles Forumite
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    forgery wrote: »
    Shame I missed issue 1 but while this option is here, I guess there is no reason not to take it. Can't really beat 5.5% for only 1 year at this moment in time.
    Issue 2 is now closed.
This discussion has been closed.
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