Barclays monthly savings account

steven--1_2

Hi
Has anybody opened one of these accounts?
it says that they pay 3.25%AER/3.20% gross pa if no withdrawals are made.
I wouldn't be making any withdrawals for the year that it runs and the maximum I can put in is £250 a month, and the interest is earned monthly.
so am I right in thinking that after the year I would earn £96
Thanks

ColdIron

I've had a few of these and it's closer to £44 after basic rate tax. Try the Regular Savings Calculator
http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#calculator
There are better accounts about if you look.

opinions4u

steven--1 wrote: »

Hi
Has anybody opened one of these accounts?
it says that they pay 3.25%AER/3.20% gross pa if no withdrawals are made.
I wouldn't be making any withdrawals for the year that it runs and the maximum I can put in is £250 a month, and the interest is earned monthly.
so am I right in thinking that after the year I would earn £96
Thanks

Your average balance for the year isn't £3,000. It's approximately half this.

So either use the link in the post above or half your balance, calculate 3.25% against that and remember to deduct income tax at 20% if appropriate.

steven--1_2

opinions4u wrote: »

Your average balance for the year isn't £3,000. It's approximately half this.

So either use the link in the post above or half your balance, calculate 3.25% against that and remember to deduct income tax at 20% if appropriate.

saving £250 a month = £3000?
so what would be the highest paying account if I was to put in £550 a month? or split this and put it in to two different accounts?

YorkshireBoy

steven--1 wrote: »

saving £250 a month = £3000?

That's your closing balance, yes.

But you only earn interest on money that's in the account!

So you've £250 for 12 months, £500 for 11 months, £750 for 10 months...and so on.

The formula to use is...

(12 x £250) x 3.25% / 12 x 6.5 x 0.8

where 6.5 comes from...

1/12 + 2/12 + 3/12...+ 10/12 + 11/12 + 12/12 = 78/12 = 6.5

and 0.8 is the tax multiplier.

innovate

Reg Savings calculator: http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#calculator

innovate

steven--1 wrote: »

so what would be the highest paying account /.........

Check first few posts in this thread https://forums.moneysavingexpert.com/discussion/comment/6932895#Comment_6932895

You will find that 3.25% account is quite pants. Also don't discard the Nationwide FlexDirect

gkerr4

i opened one of these last year - opened with £250 then the next month i dumped £2750 into it taking it straight to the max - worked! - paid full interest on the full balance for 12 months - it was actually blocked in online banking - as in, i couldn't "see" it to transfer any more in, but they paid the interest.

I didn't realise they were doing it again - i'll have another go at it!

droopsnoot

That's strange, because they usually state that the maximum you can pay in each month is £250. I once asked if I could open one with the annual limit minus 12x the monthly minimum for the same reason, but was told 'no'.

As mentioned earlier, though, while the percentages sound nice it's hard to get excited over the actual amount of interest you get. I used to run these but now I don't have a regular salary income I don't any more.

gkerr4

I didn't ask - i just transferred to the sort code / acc no. it went though, but wouldn't accept any more.


true that the value are barely worth the effort though.