First Direct - Regular Saver Account 5%

SusanSpain

Ok, my maths is getting bad - (so 2.5% not 2.75%) but I got the 50% of initial figure quoted from this person...

Opnions4U
The paragraph that refers to your situation is "Sadly regular saver accounts often receive negative publicity due to a flawed understanding. Many people say they've used regular savers, but only received around half the interest they thought they would... yet that's because they expected the wrong amount, not because they were underpaid."

I think we are coming close to Semantics and also the govt/FSA? putting their penny's worth in.
I really think this is something that should be taught in schools (although one of above forum members says sh/e teaches it to ttheir 13yr olds, so I am guessing somewhere since 1980 it was introduced into the curiculum.)

Going back to the drawing board and working out if it is just better to put it in gold... (when the prices go down of course

alanq

The current Regular Saver increases the maximum permitted total balance each month. £300, £600, £900...£3600. The minimum payment is £25 per month and the maximum payment is one that does not cause the maximum balance for that month to be exceeded. So one could pay in 11x£25+1x£3325, 12x£300 or innumerable other combinations. Each combination will give a different £ return for a given final balance. There is no way that a bank could quote a figure in advance without knowing what you choose to do.

SusanSpain wrote: »

What is the REAL APR on the 8% account if it is paid daily (on the increasing amount one puts in)

The interest is CALCULATED on each day's balance and PAID at the end of the year. The interest is not PAID or compounded daily (you don't get interest on the previous days' interest)

Soubrette

It's not semantics at all.

Assuming you put in £300 every month you would get 5% interest on £300 in the first month, 5% interest on £600 in the second month, 5% interest on £900 in the third month etc etc until you were receiving 5% on £3600 in the final month. In short you will get 5% on the full amount in the account as at any given day. You will not receive 5% on any future payments that you make into the account until such time as they become actual payments.

It seems like you were expecting 5% on £3600 from the first month and for every month after that, and, even though you did not have that amount of money in there, it's some kind of scam that you didn't get that.

When I took out my 5% regular saver, the literature told me exactly what gross and net interest I would get in total if I put in £300pm every month. Same when I replaced it by the 8% regular saver.

I would love to find a savings account that gives me 8% for depositing the whole lot in there and leaving it - but I don't think there is such a beast at the moment.

Milarky

Total saved = £3600, equates to

£1950 (average annual amount saved) @ 5% = £97.50 gross by my estimate. Therefore £78 net basic rate...

noh

SusanSpain wrote: »

................................
I really think this is something that should be taught in schools ..........................................

They do. The subject was called mathematcs when I was there.

Vortigern

@SusanSpain - Once you've digested all the information above, don't forget to start a new regular saver with first direct, before they withdraw the 8% rate. It's still a best buy for regular savers.

10_66

noh wrote: »

They do. The subject was called mathematcs when I was there.

Did they teach spelling too? (Really sorry, please forgive me, not having a go only teasing, just couldn't resist .)

noh

10_66 wrote: »

Did they teach spelling too? (Really sorry, please forgive me, not having a go only teasing, just couldn't resist .)

They did teach spelling but sadly not keyboard skills.