Regular Savings Accounts

crana9

thanks

System

Excuse my ignorance but what happens if you spot a better deal elsewhere and you want to move the money. Does the money have put in for several months revert to the low rate of interest for the whole time its been in that account or just the month you took it out of the account?

thor

I don't know but with 7% being already over 2% higher than the base rate, I don't think there will be too many accounts doing better over the next 12 months especially as the BOE is slowing down it's rate of increases. Abby are the better bet simply because they have shown a willingness not to screw over their existing regular savers and have increased their what was thought to be fixed interest rate to the new one now being offered. I'm going to treat it as a one year no withdrawal account and move on after 12 months if required.

System

I don't know but with 7% being already over 2% higher than the base rate, I don't think there will be too many accounts doing better over the next 12 months especially as the BOE is slowing down it's rate of increases. Abby are the better bet simply because they have shown a willingness not to screw over their existing regular savers and have increased their what was thought to be fixed interest rate to the new one now being offered. I'm going to treat it as a one year no withdrawal account and move on after 12 months if required.

Thanks for your reply Thor

Robert_Sterling_3

A note on Nettiquette.

Where you are following up a posting which is much higer up the screen or even off the screen it is appropriate to "Quote" all or part of such a post.
Where the post is immediately above your own it is not usually appropriate to "quote" it.  

Jude is a Law unto herself though.

pookie

just a word of warning before whooping with joy at the new 7% interest rates... if you can afford the whole £500 per month that abbey allows, resulting in a total of £6000 at the end of the year, you will have earned about £215 in interest; if you have the whole 6 grand now it's possible to put it into an account with lower interest rates but all at once- and still earn more in interest.
makes sense but easy to be seduced by the 7% figure 8)

deemy2004

Hi Pookie

Your making a fundemental mistake that apparantely even 'experts' in the press make. Okay lets do the sums - what would happen with the abbey £500 drip fed from a web saver (via an halifax current account)

Rates used 7% Abbey and 4.9% Web saver
Month      1      500       £2.88      web saver      5500       £22.15
Month      2      1000       £5.75      web saver      5000       £20.14
Month      3      1500       £8.63      web saver      4500       £18.12
Month      4      2000       £11.51      web saver      4000       £16.11
Month      5      2500       £14.38      web saver      3500       £14.10
Month      6      3000       £17.26      web saver      3000       £12.08
Month      7      3500       £20.14      web saver      2500       £10.07
Month      8      4000       £23.01      web saver      2000       £8.05
Month      9      4500       £25.89      web saver      1500       £6.04
Month      10      5000       £28.77      web saver      1000       £4.03
Month      11      5500       £31.64      web saver      500       £2.01
Month      12      6000       £34.52      web saver      0       £-  
                  £224.38                   £132.90
     Total return                   £357.29            
     The combined AER is                  5.95%            
     (note 5 days taken off interest for cash transit)                              

deemy2004

Calcs with cahoot 5.65% as a feeder

Month      1      500       £2.88      cahoot      5500       £25.54
Month      2      1000       £5.75      cahoot      5000       £23.22
Month      3      1500       £8.63      cahoot      4500       £20.90
Month      4      2000       £11.51      cahoot      4000       £18.58
Month      5      2500       £14.38      cahoot      3500       £16.25
Month      6      3000       £17.26      cahoot      3000       £13.93
Month      7      3500       £20.14      cahoot      2500       £11.61
Month      8      4000       £23.01      cahoot      2000       £9.29
Month      9      4500       £25.89      cahoot      1500       £6.97
Month      10      5000       £28.77      cahoot      1000       £4.64
Month      11      5500       £31.64      cahoot      500       £2.32
Month      12      6000       £34.52      cahoot      0       £-  
                  £224.38                   £153.25
     Total return                   £377.63            
     The combined AER is                  6.29%            
     (note 5 days taken off interest for cash transit)                              

Robert_Sterling_3

You can get a "Rough" answer as follows.
The average amount in each of the two accounts during the year is £3000.

The average interest Rate is  (7 + 4.9)/2

11.90%/2   = 5.95%  

This method is quicker than your method in your first calculation.
It takes 1 or 2 seconds.
They are both equally wrong.  
;D ;D ;D ;D ;D

Robert_Sterling_3

You don't happen to work for the Sunday Times or Chase De Vere by any chance do you?

Spot the flaw in Deemy's first calculation.
N.B. Not an arithmetical error but a flaw.