Something for you stoozers

Dumplin

Hi, my second post so be gentle.

I was looking for a savings account for when I begin my Stoozing and cam accross this.
Abbey offering Up to 7.00% gross p.a./AER

means you have to pay £20p/m in as well but ... i've put the link below

Looks good to me.

Fixed Rate Monthly Saver - As long as you can save a fixed amount of between £20 and £500 a month by standing order, our limited offer Fixed Rate Monthly Saver pays a great rate of 7.00% gross p.a./AER fixed for 12 months. After this time, the account reverts to our standard Monthly Saver.

Monthly Saver - Our Monthly Saver currently offers you 5.00% gross p.a./AER as long as you save at least £20 a month and don’t touch it. If you pay less money in, or dip into your savings, the rate drops to 1.25% gross p.a./AER.

http://www.abbey.com/future/savings/putaside/putaside_month_sav.html

monki_man

Hi Dumplin,

first of all Welcome to the boards, I did have a good look at this as well as ISA accounts however for stoozing you need the ability to withdrawn money instantly (well I like to have instant access just incase they demand all their money back) I'm sure there are many people who have ISA/Reg saving accounts.

As im an inexperience stoozer, I'll try to stay on the safe side for now.

Reaper

As the account does not allow you to add lump sums (except through drip feeding) and does not allow you to withdraw money it is not particularly suited for stoozing.

However it is a good rate of interest. There are 2 other building societies also offering good regular accounts - the Halifax and Derbyshire. Have a read of Martin's article about the subject on the main site.

Dumplin

:-[

thought it was too good to be true!!

looks like you can open it with max £500 as as long as you pay at least £20 in and dont touch it for 12 months then you'll get the 7%

will remember to check the small print before I get all excited next time

Cheers
Dumplin

Martinslovechild

The 7% rate is only for the first year. Additionally, because there is a maximum contribution each month, the actual rate you will receive is lower than a true 7% account. This is because you'll only really receive 7% gross on the first month's payment. All other payments have less time to earn the 7% interest.

For instance,

Month 1 7%
Month 2 7% * 11/12 = 6.42%
Month 3 7% * 10/12 = 5.83%
Month 4 7% * 9/12 = 5.25% etc etc

After the first year, the money is automatically shifted to one of their other savings products, but presently, the maximum they would pay is 4.9%, so it's probably a good idea to withdraw the lot and move it somewhere else at that point.

By the way, Abbey also do a very similar product. Details available here.

MarkyMarkD

The 7% rate is only for the first year.  Additionally, because there is a maximum contribution each month, the actual rate you will receive is lower than a true 7% account.  This is because you'll only really receive 7% gross on the first month's payment.  All other payments have less time to earn the 7% interest.

For instance,

Month 1  7%
Month 2  7% * 11/12 = 6.42%
Month 3  7% * 10/12 = 5.83%
Month 4  7% *  9/12  = 5.25% etc etc

After the first year, the money is automatically shifted to one of their other savings products, but presently, the maximum they would pay is 4.9%, so it's probably a good idea to withdraw the lot and move it somewhere else at that point.

By the way, Abbey also do a very similar product.  Details available here.

The original post was about the Abbey account, so it's not similar but exactly the same one!

And so what about how long you get the 7% for? It's 7%, on the balance, whilst it's in the account. So always better than 6%, on the balance, whilst it's in the account. EVERY account pays interest on the balance, whilst it's in the account - so any amount which is waiting to earn 7% by being drip-fed, is earning interest elsewhere.

Martinslovechild

The original post was about the Abbey account, so it's not similar but exactly the same one!

Whoops!!

Marky,

I meant to say that Halifax do a very similar one - details here.