ING reward 6% rate

Paul_Herring

martyn4764 wrote:

So can someone (Paul_Herring?) confirm I'm getting this right...

If we move the money now:
ING=74-6=68... 68/365*6%*85000=£950
Cahoot... 74/365*4.93%*85000=849

(1) Are you (basic rate) tax payers? If so, you need to multiply by 80% (i.e. the 20% deducted at source)
(2) Cahoot's 4.55% AER comes from 4.46% Gross - where did you get 4.93% from?)

If we wait until 29th June:
ING=34-6=28...28/365*6%*85000=391
Cahoot=34/365*4.46%*85000=353

So our best bet is to transfer the money on Monday morning??

Martyn

====================
Date of expiry 01-Aug a
Date of transfer 22-May b
Days Difference= 71 c = a-b
Assumed Days Delay 6 d
Tax rate 20% e
Compounding? No

ING rate - gross 6.00% f
Net 6.17% [1]
Other's rate - gross 4.46% g
Net 4.55% [1]
Amount considered £85,000 h

Interest from ING £726.58 i = (c-d)/365*f*h*(100-e)
Interest if left £589.94 j = c/365*g*h*(100-e)

Profit £136.64 i-j
====================
Date of expiry 01-Aug
Date of transfer 29-Jun
Days Difference= 33
Assumed Days Delay 6
Tax rate 0%
Compounding? No

ING rate - gross 6.00%
Net 6.17%
Other's rate - gross 4.46%
Net 4.55%
Amount considered £85,000

Interest from ING £377.26
Interest if left £342.75

Profit £34.51
====================



[1] http://www.bba.org.uk/bba/jsp/polopoly.jsp?d=135&a=1575

martyn4764

Hi Paul

1. No we're not taxpayers.

2. Until 28th June, we have the Cahoot Bonus rate of 5.15% AER, which I believe is 4.93 on a monthly interest basis??

Thanks

Martyn

Paul_Herring

martyn4764 wrote:

1. No we're not taxpayers.

2. Until 28th June, we have the Cahoot Bonus rate of 5.15% AER, which I believe is 4.93 on a monthly interest basis??

1) Ah - OK. By my calculations 5.03% gross is 5.15% AER on monthly interest. This makes it a bit more difficult to calculate - need three sets.
2) Opps - I thought that was 28th May on first reading - I've changed my previous post to reflect this.

('scuse the table formatting - I've already spent 10 minutes on it and this is as good as it's going to get )

Date of expiry          29-Jun    01-Aug    01-Aug
Date of transfer        22-May    29-Jun    22-May
Days Difference=        38        33        71
Assumed Days Delay      6        6        6
Tax rate                0%        0%        0%

ING rate - gross        6.00%    6.00%    6.00%
Net                     6.17%    6.17%    6.17%
Other's rate - gross    5.03%    4.46%    4.46%
Net                     5.15%    4.55%    4.55%
Amount considered       £85,000 £85,000 £85,000

Interest from ING       £447.12    £377.26    £908.22
Interest if left        £445.12    £342.75    £737.43

Column 1 is the period from Monday coming to the end of your Cahoot offer.
Column 2 is the period from the end of your Cahoot offer to the end of the ING offer.
Column 3 is the period from Monday to the end of the ING offer

Option 1) You stay with Cahoot all the time.
Cahoot[1] + Cahoot[2] = £787.87 (no profit by definition)

Option 2) You move to ING May 29th.
Cahoot[1] + ING[2] = £822.38 (profit of £34.51)

OPtion 3) You move to ING Monday
ING[3] = £908.22 (profit of £120.35)

Note that these numbers are approximate and are based on certain assumptions, and neglect certain aspects (all previously mentioned I hope) - why do I sound like an IFA here - the numbers suggest you'd be better off moving your money into ING sooner rather than later, if you feel that the extra amount is worth the effort, but double check them to make sure I haven't fouled up somewhere before you act on them please

Zwicky

martyn4764 wrote:

Hi Paul

1. No we're not taxpayers.

2. Until 28th June, we have the Cahoot Bonus rate of 5.15% AER, which I believe is 4.93 on a monthly interest basis??

Thanks

Martyn

The rates for your introductory account for monthly interest are actually:

5.15% gross p a which is 4.94% AER

This rate includes a bonus of .75% and at the end of the first six months this drops to .25% for 3 months so the gross rate will become 4.65% on June 29th

Sorry paul!

Paul_Herring

Zwicky wrote:

The rates for your introductory account for monthly interest are actually:

5.15% gross p a which is 4.94% AER

This rate includes a bonus of .75% and at the end of the first six months this drops to .25% for 3 months so the gross rate will become 4.65% on June 29th

Sorry paul!

That actually makes a significant difference on my spreadsheet. Unformatted table below:

Date of expiry 29-Jun 01-Aug 01-Aug
Date of transfer 22-May 29-Jun 22-May
Days Difference= 38 33 71
Assumed Days Delay 6 6 6
Tax rate 0% 0% 0%

ING rate - gross 6.00% 6.00% 6.00%
Other's rate - gross 5.15% 4.46% 4.46%
Amount considered £85,000 £85,000 £85,000

Interest from ING £447.12 £377.26 £908.22
Interest if left £455.74 £342.75 £737.43

Option 1 = £798.49
Option 2 = £833.00 Profit £34.51
Option 3 = £908.22 Profit £109.73

I'm not sure it's worth switching - granted you're getting a 12% increase on what you'd have if you just left it in Cahoot, which might sound a lot but in real terms it's £100. On a principle of £85,000 it sounds like peanuts.

martyn4764

Zwicky wrote:

The rates for your introductory account for monthly interest are actually:

5.15% gross p a which is 4.94% AER

Oops, sorry, got my terminology mixed up there, thanks for helping.

martyn4764

Paul

Blimey :T Thanks for all that.

The way we look at it: £100 for ten minutes work might be less than David Beckham gets, but it ain't bad!

Thanks again, much appreciated.

mary

I would say a fiver at least for Paul for his troubles too!

Daft_Monkey

Isn't there a limit of £10K per online bank transfer?
I have some money in my cahoot account, which I moved there few days before I got their e-mail about their sneaky back to back interest rate cuts. I have every intention of moving the money to another account, but I don't think it worth the trouble for just two months...Six months would have been a different story.
If there is a limit of £10K per tranfer and cannot do multiple ones to the same account on the same day, anything over £30K can take a week and a half to transfer in order to avoid the weekend black hole. Am I right?

Dagobert

Every bank has different limits.
Cahoot certainly allows at least 40K to be sent.