Regular Savings Accounts discussion

lipidicman

grumbler wrote:

:think: Some tedious, but useful maths... For those who like it. :think:

For regular saving account with £250 monthly payment it is more correct to estimate average balance during a year as

£250*(1+2+...+12)/12=£250*6.5=£1625, but not £1500.

Me, me.......we seem to be kindred spirits with the maths thing!

Now grumbler, the average balance is £1500 however you look at it. The value of £1625 that you get is however useful for working out interest paid - as in one lot of £250 gets 12 months interest, the next only 11...etc...Hence your (1+2+...+12), but the average balance is still £1500!

grumbler

lipidicman wrote:

...Now grumbler, the average balance is £1500 however you look at it. ...but the average balance is still £1500!

Cannot agree! If you are so sure, just prove it... :beer:


P.S. The average balance would be 1500 if you start with 0 and add 250 in the middle of each month, but not at the begining of a month.

lipidicman

grumbler wrote:

P.S. The average balance would be 1500 if you start with 0 and add 250 in the middle of each month, but not at the begining of a month.

Ah, you do have a point there! It is easy to miss these things!:o

I'll get you next time, gadget! :mad:

:beer:

Rahul_3

An Indian bank (ICICI) have recently launched operations in the UK and not surprisingly, they are offering the best interest rate in the UK market (even more than Halifax!). It is 5.40%, 'anytime access your money' account. While comparing the features with Halifax's Web Savers (paying 5%), I don't see any disadvantage in using this account. May be Martin can find something!!! You can apply online at https://www.icicibank.co.uk

isasmurf

Already being discussed. Anyway it is not a regular saver account which is what this thread is about.

webwiz

If you re over 60 Coventry BS offer 5.5% and you can save £2000 per month so can build up a tidy sum quite quickly. Leaving £24000 in Ing at 4.75% would earn £1140 whilst drip feeding it into Coventry would earn £100 more (using Grumbler'sformula) and you would then have £24000 all earning the higher rate for subsequent years.

icklemish

I have savings of about £8k. Is there anything stopping me setting up several regular saver accounts with diffierent banks to maximise interest?

grumbler

icklemish wrote:

...Is there anything stopping me setting up several regular saver accounts with diffierent banks to maximise interest?

Nothing can stop you. I have three. However, some banks/BSs insist in having current account with them and paying salary in (or minimum monthly credit) to have a regular saving account with them. For example, HSBC.

icklemish

grumbler wrote:

Nothing can stop you. I have three. However, some banks/BSs insist in having current account with them and paying salary in (or minimum monthly credit) to have a regular saving account with them. QUOTE]

Thanks grumbler
Just out of interest, what are the 3 banks you have yours with that don't require you to have a current account with them.

grumbler

Halifax (usual regular saver and children's one), Abbey (very good one, but is not available any more). My wife has the same.