Regular savers explained

Kazza242

loulou41 wrote:

I think, I have got the right account because in my letter one of the condition is I pay £1,000 or more into my current account. It's definitely not the regular saver account paying less. I just do not understand the mistake in the interest.

What is puzzling isn't just the small amount of interest you've been paid, but also the timing of your interest payment. I opened my account almost two months before yours, yet my account won't be paying interest until next Friday - which is the anniversary of account opening.

As you opened your account in April, you shouldn't have been paid interest yet.

When Barclays launched the 10% regular saver last February they also had a standard regular saver available which paid a much lower rate of interest. This closed to new customers a few months after the 10% saver became available. Barclays did mistakenly open the standard saver for some customers who wanted to open the 10% saver.

I agree that the best course of action would be to go to your local branch and enquire into what has happened here, as something is definitely not right. Ask them to confirm that they opened the 10% regular saver for you and if so, find out why you've been paid interest early and at a lower rate.

derrick

The Derbyshire has one that allows up to £1000. per month, no withdrawals for the first 12 months, 6% for the first 12 months then drops to 3.5%, but you can vary the amount saved each month between £10-1000.
I still have one that I opened over 18 months ago now paying 5.5%, but does not drop the rate after 12 months, looking at this I might have to divert to this new one

loulou41

It is the right account according to the letter I got, I have just studied it carefully e.g one of the condition is no withdrawal etc. I will go to the branch and ask what's going on? Thanks

RayWolfe

derrick wrote:

Duplicate post. can't delete!!

Go to EDIT and follow the prompts.

MarkyMarkD

I am personally sick and tired of all these posts about "regular savers are a con because you don't get the declared interest rate on the entire balance".

They are not a con. You get the declared interest rate on the balance in the account on each day of the account's life.

Obviously you don't earn 12% on the balance on the final day of the year, if you only dripped it in in installments of £250 each month. Anyone who expects 12% x £3,000 = £360 in those circumstances is simply stupid.

To claim that it is misleading to call the interest rate 12% in those circumstances is to claim that you are stupid.

Similarly, all the debate about "is x% on a regular saver better than y% on another normal savings account" is fatuous and a waste of time. Of course x% is better than y% if x% is higher than y%. End of story. Of course you'll earn more interest if you put £3,000 in an account earning y% instead of paying £250 a month into a regular savings account paying x%, unless y% is particularly poor. But so what - the other £2,750 in month one, £2,500 in month two, etc. is still earning y%. Overall, you are better off by putting some of the money into the regular saver.

So if we are going to have a sticky post with definitions, these perennial questions need to be included within it - and the answers which demonstrate that the questions are misguided.

tom188

I am personally sick and tired of all these posts about "regular savers are a con because you don't get the declared interest rate on the entire balance".

We all agree with you there Mark, Ive had many a rant on this very subject. It beggars belief how misguided some people appear to be, and the chorus of "its misleading" that often follows one of these posts is nothing more than depressing.

I think some of us may be approaching this thread in a kind of tongue in cheek way, including the OP...

Milarky

loulou41 wrote:

Mine is not matured yet, but on checking my online banking, I have noticed this:- I have copied and pasted it for your information. Only £31.62 interest. Does this make sense to anybody? Does not seem a lot.

12/02/2007 Standing Order £250.00 £2,781.62


01/02/2007 Credit £31.62 £2,531.62
INT EARNED £39.52
INCL BONUS £26.88

Lolou,
I now think it likely you have picked up this account (now a 'closed issue') which credits interest to the 31st January and the payout consists of a 'basic' and a 'bonus'. (I recall someone mentioning at the time the current regular saver was brought out that Barclays had an existing product, and to ask for the right one - it looks like you were sold the wrong one - so good luck getting them to put you back on the correct rate)

[opps! didn't see Kazza's post directly after yours - Pace Kazza!]

MarkyMarkD

Al_Mac wrote:

If you can write what you want to say, in an easy to understand, not sarcastic way, I will more than happily add it.

I didn't think I was sarcastic the first time! I will have a think about it.

masonic

Al_Mac wrote:

If you can write what you want to say, in an easy to understand, not sarcastic way, I will more than happily add it.

What, you mean something like this?

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1108401263,93536,

Sadly Regular Saver accounts have often received negative publicity due to a flawed understanding of them, with comments like:

“Invest £3,000 for a year in a standard 5% savings account and you get £150 interest before tax, yet £3000 in a Regular Saver at 7% only earns you around £110 interest, so these accounts are poor.”

This is silly logic, as in practice you’re drip feeding the £250/month in, so the rest of your money is in another account (hopefully) earning high interest, while it waits to be fed in. Thus to compare fairly, add all the interest together. Do that and you’ll find you’re earning much more.

MarkyMarkD

Yes, give that man a prize for that article on the subject.