Could I get more interest if I do this?

redrabbit29

Hey guys,

I have a nationwide e-savings account. I opened it about 3 years ago as it was the best interest I could find and was also recommended to me. I've been paying £75.00 in to it and using it as an emergency-money thing. So i withdrew some money for my house deposit and things like that.

Anyway, I just checked my account and in March 2006 I got paid £37 interest for the year - after tax.

March 2007 is coming up soon, and I was thinking of putting some more money in to try and gain more interest on it. Woudl this work? So, if my balance now is £1200, and I topped it up to £1500, would I gain more interest in March?

Thanks.

Graham_Devon

If interest is calculated daily yes. You are talking roughly a quid though.

What's the interest rate on the account? You could possibly get even more interest by using a different savings account like ICICI or ICESAVE.

redrabbit29

Graham_Devon wrote:

If interest is calculated daily yes. You are talking roughly a quid though.

What's the interest rate on the account? You could possibly get even more interest by using a different savings account like ICICI or ICESAVE.

I think it is something like 5%. The thing I like about nationwide is the online banking is very simple, and easy to access.

RayWolfe

redrabbit29 wrote:

I think it is something like 5%. The thing I like about nationwide is the online banking is very simple, and easy to access.

The current rate is 5.05%. It may go up on 1st February.

Mikeyorks

redrabbit29 wrote:

So, if my balance now is £1200, and I topped it up to £1500, would I gain more interest in March?

Thanks.

That sounds a bit like a 'Regular Saver interest' misunderstanding? Yes ... you will get more interest. But only 'more' on the extra £300 for the period (say 1 month, if the account anniversary is 1st March) it is in there. Which works out at (£300 @5%)/12 = £1.25 gross. That compares to £60 gross on the £1200 ...if you've had that value in for a full year.

Worth taking it up to £1500 ... but really only if you leave it in. Not really worth the effort (?) if you're scraping the extra together just to have it in on the anniversary. Because the interest is calculated pro-rata to how long a part of the year the money is in for. There's no sort of bonus if you have it in at the anniversary date ... or we'd all be at it;)

redrabbit29

Mikeyorks wrote:

That sounds a bit like a 'Regular Saver interest' misunderstanding? Yes ... you will get more interest. But only 'more' on the extra £300 for the period (say 1 month, if the account anniversary is 1st March) it is in there. Which works out at (£300 @5%)/12 = £1.25 gross. That compares to £60 gross on the £1200 ...if you've had that value in for a full year.

Worth taking it up to £1500 ... but really only if you leave it in. Not really worth the effort (?) if you're scraping the extra together just to have it in on the anniversary. Because the interest is calculated pro-rata to how long a part of the year the money is in for. There's no sort of bonus if you have it in at the anniversary date ... or we'd all be at it;)

Thanks for the great advice! Thought it seemed a bit too simple :-)

I was just wondering as I have an interest free account, it's currently minus 1200 at the minute, but the limit is about minus 1700 and I was going to take the money out and use it for the savings.

I won't now though. Thanks again.

Idiophreak

am I missing something?

It seems to me that if he were to chuck it over to the savings account, then back to the current account in march, he'd get an extra £1-1.50 based on what other people have said.

If banking online, that'll take about 12 clicks (could even set up the transfer back at the same time). That's like 10p per click. Not a lot, but every little helps?