bradford and bingley 10% con???????

[Deleted User]

MarkyMarkD wrote:

I hope that Tustastic and Pink-winged comments weren't sarcastically aimed at me.

I think you will find that they were, in much the same way that your original comment was apparently sarcastically aimed at karenmc.

Can I suggest that you compare your post count with that of karenmc and cut the poster some slack? Were you not a beginner at some point? Explanation is better than irritation.

Similarly, RayWolfe, the use of 'exclusive' jargon such as OP is likely to be lost on a new poster, and what exactly does 'looking to the left' entail?

RayWolfe

Deleted_User wrote:

and what exactly does 'looking to the left' entail?

What?
Try it and you will see:
Home Page
Credit Cards
..
..
Savings and investments
click it and see

But hey, they don't even need to do that, I gave them the link!

And I stick to my point, help is one thing, doing the whole job for someone is something else. We all should research; make sure we know what we are doing. No part of life is: "Please sir, tell me what to do". That's the way unsuitable products get sold to people.

I do apologise for saying OP instead of Original Poster. That was lazy of me. ;-)

RayWolfe

And now, I notice, that there is even a Start Here resource at the top of each board. Will folk use it or will there continue to post: I've got thrupence, what should I do with it?
Me grumpy today? Nah! ;-)

MarkyMarkD

Deleted_User wrote:

I think you will find that they were, in much the same way that your original comment was apparently sarcastically aimed at karenmc.

Can I suggest that you compare your post count with that of karenmc and cut the poster some slack? Were you not a beginner at some point? Explanation is better than irritation.

Similarly, RayWolfe, the use of 'exclusive' jargon such as OP is likely to be lost on a new poster, and what exactly does 'looking to the left' entail?

Firstly, I wasn't being sarcastic - I was honestly suggesting to our new friend that she used the search feature. Ray has also helpfully suggested using the editorial pages before jumping straight into the forum.

When I'm in the mood, I'll go through some friendly rigmarole of welcoming new people to the site, as I've obviously been here a lot longer than they have, but I'll still go on to suggest that they read the other threads. Duplicated threads just clutter up the board and make it harder for people to find what they need.

Ray's "OP" was aimed at Tustastic, not the OP herself - I expect that Tustastic knows what it means.

tomstickland

There aren't any "cons" or "flaws" with regular savers other than the limitation on the amount of money that can be put into the account at the start. This means that the final amount of interest divided by the final balance will be less than the advertised rate. Since the account has an average balance of around half the final balance then the final interest percentage is somewhere around half the net interest rate.

Gross rate per year 10%
Net rate per year (20% tax) 8%
Expected final interest 4%
Scale by 10/12ths since it only applies for 10 months 3.3%

Expected interest 0.033*1500=£50.

If the account was fed from another 10% account then the total of the interest from both accounts would be close to 8% (10% minus tax).

if the account was fed from another account with a rate at, say, 5% gross then the amount of interest will approximately be the average of the two rates.
So 5% to 10% gives around 7.5% annual interest, after tax is 6%. Still beats most ISAs.

Jake'sGran

karenmc wrote:

She feel very agreaved. Has this happened to any one else? What do you think?

Hello Karen, I am sorry about your Mum's disappointment. These accounts are misleading to so many people. I don't understand why it is not made clear in the advertising that the nett interest is quite low depending on the rate offered i.e. obviously 10% monthly is better than 7%. Usually there is small print on other products offered by banks etc but with these monthly deposit accounts it must be assumed that anyone who invests in them must know how they work. The best rates are usually on bonds - putting a sum of money away for say one year at a fixed rate. You know where you are up to then. But, quite a few banks are paying over 5% for only £1 deposit now but usually only via the Internet.

tomstickland

The rates are not a con; you do receive 10% gross on the money in the account. This is very good and I think regular savers are a great idea. I use them along with high paying instant access accounts like HiSave.

Wig

MarkyMarkD wrote:

KarenMC

As this subject has been posted dozens* of times before, almost always by new site members, can I suggest that you do a search before posting repetitive questions?

Thanks

MMD

* (OK, probably an exaggeration, but it feels like it)

That's a harsh attitude to take, might I suggest if you find repetitive posts annoying that you don't bother reading/replying to them?

mary

I have to agree with Marky Mark, maybe it's unfortunate for KarenMC's Mum, but there are many many posts on the forums, where basically people are asking the same question time after time, and if they only took a bit extra time they would find their answers either in the articles by Martin or in the sticky threads. Umpteen times you read someone's come into a lot of money, whether £5,000 (a lot for some) or £50,000 (a lot for others) and ask what should they do with it.

One likes to help and keep abreast of what is being debated on the forum, in case genuinely new problems etc arise, but you don't find that out until you have read them.

masonic

Wig wrote:

That's a harsh attitude to take, might I suggest if you find repetitive posts annoying that you don't bother reading/replying to them?

It might seem on the surface to be harsh, but, although it hasn't happened here, with topics like this there is a tendency for discussion to be drawn out with several other misguided people 'jumping on the bandwagon'. The same misunderstandings resurface and then someone knowledgable has to come along and take the time and effort to set the record straight. People do stop bothering to read/reply to those threads and so incorrect information in the repeat threads often stands uncorrected.

I would much rather be abraisively directed to exactly the information I require, than receive an apathetic digest of that material in thread.