First Direct Regular Saver 8%

blueberrypie

emuzeg wrote: »

Hmm, I see. I'm having difficulty though in working out how much interest I would get if I, say, put 300 in for 2 months then 25 thereafter making a total of 850. £68 for the year? That works out at only just above the current 1.6% rate I get on my Lloyds current account with 2800 in.

I think a bit less than £68 - but it's still better value than putting £2800 into another account paying 1.6%.

If you have the £2800 now, you start feeding £300 to the Reg Saver every month, so each month you have the maximum making 8% and the rest making 1.6%.

If you don't have the £2800 now, you won't be getting 1.6% of £2800 anyway.

Let's say you make £60 over the course of the year with the Reg Saver. If you put the same money into a different account for the same length of time, and the different account was earning 1.6%, you'd earn about £12 on it.

emuzeg

I see. Well I have just looked at my Lloyds statement for the past 2 months. Over that time I have had over 2000 in the current account but I have had no interest!! Reading the small print it says:

Balances over 1000 get 1.59% net, but to get paid each month need to pay in minimum 1000 per month.

So I get ZERO on all my cash in Lloyds.

I'll have to see what other options I have. Since I need access to cash I can't really tie it up in the 8% FD saver account, so might have to just put it in my Lloyds esaver.

Eco_Miser

emuzeg wrote: »

Balances over 1000 get 1.59% net, but to get paid each month need to pay in minimum 1000 per month.

So I get ZERO on all my cash in Lloyds.

So you need to pay £1000 in each month, there's nothing to stop you bouncing £1000 around several accounts and ending up where it started. Many people on this board move £1000 between three Lloyds Vantage accounts and one or two Halifax Reward accounts (for the £5/month reward).

emuzeg wrote: »

I'm having difficulty though in working out how much interest I would get if I, say, put 300 in for 2 months then 25 thereafter making a total of 850. £68 for the year? That works out at only just above the current 1.6% rate I get on my Lloyds current account with 2800 in.

You're getting more money for less than a third of the investment.
The table below shows the amount subscribed, new balance and interest earned each month.
Sub Balance Interest
300 300.00 2.00
300 602.00 4.01
025 631.01 4.21
025 660.22 4.40
025 689.62 4.60
025 719.22 4.79
025 749.01 4.99
025 779.01 5.19
025 809.20 5.39
025 839.60 5.60
025 870.19 5.80
025 900.99 6.01
850 Totals 57.00

Biggles

emuzeg wrote: »

Balances over 1000 get 1.59% net, but to get paid each month need to pay in minimum 1000 per month.

That's because, as you say, it's a current a/c not a savings a/c. But all you need to do is move £1k out to another a/c and back again each month, instantly using FPS.

emuzeg

Eco_Miser wrote: »

So you need to pay £1000 in each month, there's nothing to stop you bouncing £1000 around several accounts and ending up where it started. Many people on this board move £1000 between three Lloyds Vantage accounts and one or two Halifax Reward accounts (for the £5/month reward). You're getting more money for less than a third of the investment.
The table below shows the amount subscribed, new balance and interest earned each month.
Sub Balance Interest
300 300.00 2.00
300 602.00 4.01
025 631.01 4.21
025 660.22 4.40
025 689.62 4.60
025 719.22 4.79
025 749.01 4.99
025 779.01 5.19
025 809.20 5.39
025 839.60 5.60
025 870.19 5.80
025 900.99 6.01
850 Totals 57.00

Brilliant explanation, I will definitely open the 8% account then.

Tried just now applying online for the Halifax reward account, but failed as I had to put in my previous address which was overseas Guess I'll have to go in branch. When they ask what is the account for though I can't say 'to get your £5 per month' can I? Also is there a legal problem with having 4 bank accounts!? Also don't they ask questions if people take out 1000 then put it back in as it's obvious why they're doing it?

Ifts

emuzeg wrote: »

When they ask what is the account for though I can't say 'to get your £5 per month' can I?

They will probably know why you are doing it, if they do ask just say its different savings pots for different things.

Also is there a legal problem with having 4 bank accounts!?

No.

Also don't they ask questions if people take out 1000 then put it back in as it's obvious why they're doing it?

Don't think so otherwise they would have changed their T&Cs to stop people doing this if it was a problem for them. Probably just trying to get their account numbers up. Have not done it myself but plenty of people on here have got it set up where they just move the same £1k through the accounts to get the reward.

Nellybee

Called them today and was told you have to pay £1500 a month into the current account if you dont theres a £10 penalty .So over 12 months it would wipe out the interest on the regular saver.:mad:

Gromitt

Nellybee wrote: »

Called them today and was told you have to pay £1500 a month into the current account if you dont theres a £10 penalty .So over 12 months it would wipe out the interest on the regular saver.:mad:

Open an eSaver and stick £1 in it, no penalty then as you have an "additional product" as specified in the banking terms and conditions.

Ifts

Nellybee wrote: »

Called them today and was told you have to pay £1500 a month into the current account if you dont theres a £10 penalty .So over 12 months it would wipe out the interest on the regular saver.:mad:

Not if you open the e-Saver account with them too at the same time, saves you having to put the £1500 a month into the current account.

You can get away with the monthly fee on the First Direct 1st Account if you also open their everyday e-Saver account, even with just a pound in the e-Saver does the job as it counts as a qualifying account to waive the monthly fee.

typistretired

My First Direct Regular Saver has just matured I paid the maximum £300 in each month totalling £3600. I received net interest of £125.41 plus another £5 interest for the delay in changing my savings from the regular saver account to a single savings account (a weekend was involved). £130.41 in total. If I had put £3600 in a savings account I would have needed an interest rate of nearly 4.40% to achieve that interest