Any 8%+ Reguler Savers

Dagobert

RayWolfe wrote:

Sorry to be so late in coming back.
Point is (except Abbey) they didn't want to know the date. Abbey completed the SO for me, asked for a date, I gave them one, they gave me back the form, it went in my bin and I juggle the dates to suit Ray's Weekend Law (never have money in transit over a weekend). Some of them have been running for years (Halifax 7%) and no one; not even Abbey has raised any problem or issue.

Abbey doesn't care about the date the payment comes in. It may vary as long it arrives within the calendar month.

Do you pay Abbey "manually" by BACS or do you just vary the SO date?

Dagobert

Kazza242 wrote:

I adopt a slightly different strategy from some of you. If the 1st falls on a Wednesday, Thursday or Friday, then I send the payment to my regular saver so that it hits the regular saver on the 1st - or as near to the start of the month as possible.

dto - I also try to get the payment in as close to the 1st as possible.

RayWolfe

Dagobert wrote:

Do you pay Abbey "manually" by BACS or do you just vary the SO date?

BACS, the SO went in the bin.
If anyone is still doubtfull about this, look at the info you give your bank for a bank transfer, bill payment or whater and a standing order; there is no difference. There is no way the receiving institution could tell how the money was sent.
Some of the Monthly Savers are happy to receive cash, cheques, more than one payment each month ... so they don't care about dates or means.
Cheers
Ray

Dagobert

RayWolfe wrote:

BACS, the SO went in the bin.
If anyone is still doubtfull about this, look at the info you give your bank for a bank transfer, bill payment or whater and a standing order; there is no difference. There is no way the receiving institution could tell how the money was sent.

I know that the information required to set up a BACS payment (sort code, account number, reference) is identical. SOs are just repeated BACS payments. See The Clearing Cycle, second paragraph.

However, what puzzled me was that my bank advisor at the Coventry BS said they could tell the difference.

mary

ED wrote:

I have long avoided the weekend-in-transit situation by adjusting Standing Order dates for each month, so if the 1st day of the next month falls on a Friday, I delay the SO till the Monday following that, so it reaches is destination on the following Wednesday. Cleared funds arrive only a day late, but at least they don't spend 2 extra days earning nil interestQUOTE]

Where do you keep the money over the weekend which will be used for the STOs on the Monday? In a current account?

RayWolfe

mary wrote:

Where do you keep the money over the weekend which will be used for the STOs on the Monday? In a current account?

Mine is in my Nationwide flex account earning 4.25% or my Nationwide e-Saving account (instant access) 4.8%.
Cheers
Ray

RayWolfe

Dagobert wrote:

However, what puzzled me was that my bank advisor at the Coventry BS said they could tell the difference.

Mmmm!
Who benefits from money in transit?

I understand that the clearing cycle is to be abolished when software is updated! Strange that banks can close branches and set up call centres and associated software halfway round the globe in months but to give customers credit earlier is IMPOSSIBE for years.
Me? Cynical?
Cheers
Ray

Dagobert

mary wrote:

Where do you keep the money over the weekend which will be used for the STOs on the Monday? In a current account?

It depends on

1. interest rate of the current account
2. whether it is a current account at all

Bear in mind if you don't use SOs but transfer by 'manual' BACS payments instead the money does not need to come from a current account at all.

I transfer from varying sources, lowest interest used up first.

For current accounts with low in-credit interest, I set up online savings accounts to keep money over the weekend. You need to understand your accounts though: they all work differently! For instance, internal transfers are usually immediate, even at weekend. But Barclays, for instance, schedules internal transactions for the next working day.

Dagobert

RayWolfe wrote:

Mmmm!
Who benefits from money in transit?

I understand that the clearing cycle is to be abolished when software is updated! Strange that banks can close branches and set up call centres and associated software halfway round the globe in months but to give customers credit earlier is IMPOSSIBE for years.

Banks are businesses, not charities.

And I am in the business of maximizing my interest.

It would be naïve to assume that the clearing cycle will be shortened at no cost to us. The lost income will be recouped one way or another. It might cost us free banking.

stphnstevey

Sorry to steer the conversation back to the actual question!

But I still can't get my head around the 'effective' rate (ie. taking into account a monthly savers interest as well as the interest fro m another savings account whilst it is drip fed in vs amount invested) of a long term monthly saver such as the Yorkshire Bank one.

I have even gone so far as to map a six year period out on a spreadsheet, used the suggested Smile calculator below to work out the interest (on both the monthly saver and the account your drip feeding from).

The problem I get is that a couple of my savers I invest different amounts, therefore do I divide the interest by the initial investment to get the rate????

Also, a long term saver (like YB) doesn't reinvest the money like if I did A+L one each year. Therefore I think I divide the total interest over 3 yrs from the YB by about £18000 (3*12*500). But the A+L one is reinvesting the money, so do I divide the 3 yrs interest by only £3000????????

I've then gone to six years, which gets even more complex!!!! Arrghhhhhhh!!!!!!!!!

I believe a LONG TERM saver might be better, I just need to prove it to myself.

PS - Lets forget compounding interest for now, as it could be in either case, but makes life easier if we put it to one side for now!