Advice please - Childs saver required

moorg86

I am looking into putting the money we saved for our son into a fixed rate savings account for a year, and each year adding the accumulative balance from the Halifax 6% account on.. It is a mine field of different options..
I don't know if it's right or wrong.. it just doesn't seem like much!

Princess_nola1

All rates are pretty rubbish at the moment too

innovate

moorg86 wrote: »

Just a little point that we have realised.. the 6% interest rate is the total interest paid divided into 12 lots of interest.. to make it clearer you get 0.5% interest on the first £100 you save, then 0.5% interest on £200, 0.5% on £300 and so on, so if you save the maximum amount each month over the 12 months the amount of interest you will be paid is £40 (there or thereabouts)
£40 on £1200 doesn't seem that much to me, or am I wrong?!

It's a lot more than you would get if the AER was just 3%.
Regular Saver calculator might help: http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#calculator

opinions4u

moorg86 wrote: »

Just a little point that we have realised.. the 6% interest rate is the total interest paid divided into 12 lots of interest.. to make it clearer you get 0.5% interest on the first £100 you save, then 0.5% interest on £200, 0.5% on £300 and so on, so if you save the maximum amount each month over the 12 months the amount of interest you will be paid is £40 (there or thereabouts)
£40 on £1200 doesn't seem that much to me, or am I wrong?!

Try sticking it an an account paying less then.

Why would you expect them to pay interest on money that isn't there?