Regularly Beat the Best Savings Account Rates Discussion Area

westmax

MJMum wrote: »

A&L is 6.1%, but as they also do an interest free overdraft for the first year, you're better off operating in overdraft until then.

So, have I got this right, you drip £1000 from the free overdraft into a suitable regular saver over the course of the year, pocket the interest then put 1K back in the A&L c/a?

BiscuitLily

Hi, I was just reading an article on the MSN hotmail site about stoozing, and it says you can get up to 12.5% on regular savings of £250 a month. Does anyone know where this is, or, as the article was written in Jan 07 was it an offer at the time?

http://money.uk.msn.com/creditcards/articles/article.aspx?cp-documentid=2355547

Kazza242

BiscuitLily wrote: »

Hi, I was just reading an article on the MSN hotmail site about stoozing, and it says you can get up to 12.5% on regular savings of £250 a month. Does anyone know where this is, or, as the article was written in Jan 07 was it an offer at the time?

http://money.uk.msn.com/creditcards/articles/article.aspx?cp-documentid=2355547

The article is referring to the Barclays 12.5% regular saver which was available until February 28th 2007. To have qualified savers had to have a current account with Barclays and pay their salary of at least £1,000 into it each month.

There are lots of other regular savings account currently available, like Yorkshire Building Society 7%. This account allows you to continue saving at the high rate until the balance reaches £20,000. For other regular savers check out the Moneyfacts list, here.

MJMum

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xmrb2006x

That's an even better idea! But I wonder what the maximum interest-free overdraft is that A+L would give you?? Would need to be £3000 to make it worthwhile for me really although I suppose you could still fund part of it with the o/d. Jeez, this gets ever more complicated! And it won't fund lots of regular savers. I just wish more people would do the 12% ones...

betabraga

hello everyone, try to get to this page sooner and did know how!
I guess,that the new people here get a bit confused like me with all this threads.
can somebody tell me how to work out the monthly interest,as we know the annual interest only.lets say in 150 pounds put aside every month on a 5.8%
this is getting quite complicated for me.

kev459

The monthly interest rate on 5.8% AER would be 0.483% roughly. You work this out by dividing 5.8 by 12 (months), which gives you 0.483% per month. To work out the monthly interest you take £150 x 0.483 then divide by 100, this will give you your monthly interest. Assuming that this is a regular savings account the interest earned on the 1st months £150 would be about 0.72p.
The second months £150 makes the total in the account £300 plus your first months interest of 0.72p making a total £300.72p. Using the same formula above means that your second month’s interest would be £1.45 which then gets added to your account making the total £302.17.
The amount of interest you earn every month will keep getting more as long as you keep putting your £150 pm in. All the above doesn’t take into account any tax paid on interest which would be 20% of all interest earned, if you pay at the basic rate.
Hope this is useful.
Have you looked at other regular savings accounts such as Halifax, Yorkshire etc. as they all pay more interest, even ICESAVE which is an instant access account pays 5.7% AER.

kev459

RayWolfe

Are you promoting your own site here? It looks like a big advert to me!

kev459

Firstly I don't even have "My own site". Secondly I couldn't find a simpler way to explain how to work out the monthly interest rate. As my old maths teacher always told me "show all your working out".
Thirdly I was only giving some alternatives as 5.8% isn't the best rate of interest on a regular saver. Flippin heck!!

BiscuitLily

Just noticed that Alliance & Leicester have a 12% (gross) regular saver for people opening a new premier current account. Existing account holders can apply if they take out legal and general insurance (for life, critical illness or something along those lines). I have only had a very quick look as I am busy at work but thought I would let you know....