HSBC Regular saver account

kolin_2

I currently have a current account with the above global corporate monstrosity. I also noticed that they hav a regular saver account at 4%, if i deposit £50 every month for 12 months, whats my likely outcome after tax, etc if i've droppoed in £600 over the year

Net : 3.2%
Gross 4%
AER 4%

just thinking that dropping 50quid in every month, would leave me to enjoy christmas next year!

Lokolo

After tax about 1.7%

So about £10.

There is a calculator about somewhere...

Found it! http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#calculator

kolin_2

so it's a bit pointless then?

Mr_K

Regular Savers. Not worth getting out of bed for IMHO. I know there's many that will disagree but also many who are hugely dissapointed when they get their interest....

Lokolo

kolin wrote: »

so it's a bit pointless then?

For maximum return - the amounts and that rate I would say yes. However saving in general is never pointless

zygurat789

Lokolo wrote: »

After tax about 1.7%

So about £10.

There is a calculator about somewhere...

Found it! http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#calculator

How do you arrive at 1.7%?!!!

Lokolo

zygurat789 wrote: »

How do you arrive at 1.7%?!!!

You divide by 12 and time by 6.5 to get the gross rate as it is a regular saver (so the average amount in the account is just over half). Then times 0.8% to tax off tax.

zygurat789

Lokolo wrote: »

You divide by 12 and time by 6.5 to get the gross rate as it is a regular saver (so the average amount in the account is just over half). Then times 0.8% to tax off tax.

Divide what by twelve.
There is £300 invested for a period of one year.
Interest received £10.35
Therefore gross rate 3.45%
After tax 2.76%

A lot different from 1.7%

Lokolo

zygurat789 wrote: »

Divide what by twelve.
There is £300 invested for a period of one year.
Interest received £10.35
Therefore gross rate 3.45%
After tax 2.76%

A lot different from 1.7%

Opps. I meant 2.7%

I am very tired

(4% / 12) * 6.5 = gross

gross * 0.8% = net.