Abbey 7% Fixed Rate Monthly Saver launch 14/07/06

mary

Opened the 7% regular saver in branch today. The girl asked what date I would set up the SO for this month, said about the 9th August, to give about 4 working days for it to come live, but have just noticed in the paperwork at home, that it says "Ensure that the SO will start the month after you opened your account (i.e. in my case Septemer) and will be paid between 1st and 21st every month."

What have others done?

lipidicman

Mary, I opened mine on the 29th and set up the SO (at my bank, done on screen whilst I was there) for the 2nd of August. The branch seemed to think that the account will mature on the anniversary of the first deposit. However I got different advice on the phone. I believe, but need to confirm. that the branch were correct

mary

Ah, you were lucky, in that you got in at the tail end of July and so your SO for next month wasn't far away. The branch also told me that it would mature on the anniversary of the first deposit, so will have to wait till Sept 1st now before I put in the first amount.
Thanks

lipidicman

Lucky? I engineered it that way, mary. I am surprised at you! Mind you, you have so many accounts to track!

If the account matures on the anniversary of the first deposit then you have lost nothing, just delayed things a little.

mary

Good enough excuse - my son got married last week in Poland, so a taste of vodka and travelling got in the way!

free4440273

sorry to be a complete dimwit! if i put the maximum £250 each month into this abbey account which is paying 5.60% net then how much would i have actually earned at the end of the year aside from the original £3000? i have calculated 'only' £90 using the following online calculator:
http://www.fool.co.uk/savings/savings-calculator.aspx?site=UKFool

I suspect i have calculated wrongly! does anyone know of an alternative good online calculator for dimwits like me. i am not laying the blame at the fool.co.uk calculator - i am obviously not inputting the correct info into the fields i suspect. thanks all

Kazza242

free4440273 wrote:

if i put the maximum £250 each month into this abbey account which is paying 5.60% net then how much would i have actually earned at the end of the year aside from the original £3000?

I make it around £91 for a basic rate tax payer.

free4440273 wrote:

does anyone know of an alternative good online calculator for dimwits like me. i am not laying the blame at the fool.co.uk calculator - i am obviously not inputting the correct info into the fields i suspect. thanks all

I use the Smile bank calculators.

magpiejay

It looks like you may get an extra month's interest if you pay in on the 2nd of the month (not the 1st.) if you pay in on the 1st, it looks like they pay interest and convert it to a regular monthly saver that night.

According to the t's and c's:

"Interest is paid directly into the account after close of business on the 1st of the month following your 13th monthly payment into the account. Your account will automatically become a Monthly Saver at this time, your account number will stay the same and you can still use your passbook. You can also continue to save, setting up additional standing orders and pay in cash or cheques and earn a high interest rate"

http://www.abbey.com/index/future/savings_index/reward_index/reward_fixed_rate_monthly_saver_index/reward_fixed_rate_monthly_saver_facts.htm

free4440273

thanks kazza - my thanks button has gone awol, so thank you for the quick response. can i ask others a quick question? excuse my naivety here, but if i am putting the maximum £250 into this account and i earn 'only' £91 interest at the end of it then, i will try and be diplomatic here, this isn't exactly a great amount is it? so in other words, in order for an account to pay me interest of, say, £1000 at the end of year (which is what i am looking for) i need an interest paying account of 20%!!!. what i am trying to say is, £90 is not a huge amount for paying in £250 each month. i really expected far more. are there any accounts which would pay me between £500-1000 at the end of the year. that would be far more reasonable. thanks. sorry if i have taken this thread onto a different tangent

lipidicman

magpiejay wrote:

It looks like you may get an extra month's interest if you pay in on the 2nd of the month (not the 1st.) if you pay in on the 1st, it looks like they pay interest and convert it to a regular monthly saver that night.

According to the t's and c's:

"Interest is paid directly into the account after close of business on the 1st of the month following your 13th monthly payment into the account. Your account will automatically become a Monthly Saver at this time, your account number will stay the same and you can still use your passbook. You can also continue to save, setting up additional standing orders and pay in cash or cheques and earn a high interest rate"

http://www.abbey.com/index/future/savings_index/reward_index/reward_fixed_rate_monthly_saver_index/reward_fixed_rate_monthly_saver_facts.htm

Depends if you read it as:
on the 1st of the month following your 13th monthly payment into the account.
or:
on the 1st of the month following your 13th monthly payment into the account.

IYSWIM. I read it as the first.