childrens 6% not 6%?

Fliss_M

Went into halifax today to open their 6% childrens regular saver for the newest addition.

I was told by their adviser that its only 6% per addition each month so at the end of the year it actually works out as 3% which is exactly what their easy access childrens saver is.

Anyone else been told this? As I would have thought thats something that should have been covered in martins "top childrens savings" part

xylophone

http://www.halifax.co.uk/savings/accounts/branch-accounts/
Explained here.

Linton

Fliss_M wrote: »

Went into halifax today to open their 6% childrens regular saver for the newest addition.

I was told by their adviser that its only 6% per addition each month so at the end of the year it actually works out as 3% which is exactly what their easy access childrens saver is.

Anyone else been told this? As I would have thought thats something that should have been covered in martins "top childrens savings" part

Surely the 6% annual becomes 3% because you pay-in monthly. On average the money is only in the account for half the year. On the same basis the 3% annual account would give 1.5% total interest over a year.

CLAPTON

obviously so

6% is an ANNUAL rate which applies if you save an amount for a full 12 consecutive months

interest builds up on a daily basis
so, with a regular savings the all the money is not saved for the entire 12 months; on average the 'full ' amount is only saved for 6 months



there are about 10,000 threads about this and indeed Martin covers this area as well.

opinions4u

I was told by their adviser that its only 6% per addition each month so at the end of the year it actually works out as 3% which is exactly what their easy access childrens saver is.

Try paying in to the other (3%) account monthly and asking them to explain why you will only earn c1.5%.

badger09

Fliss_M wrote: »

Went into halifax today to open their 6% childrens regular saver for the newest addition.

I was told by their adviser that its only 6% per addition each month so at the end of the year it actually works out as 3% which is exactly what their easy access childrens saver is.

Anyone else been told this? As I would have thought thats something that should have been covered in martins "top childrens savings" part

Fliss M you will get 6% on every £1 in the account for every day its in there (subject to any other T&C re missed payments, withdrawals etc)

Put another way...
Say you have 2 accounts paying the same rate of interest
You pay £100 into a/c 1 on day 1
You pay £100 into a/c 2 on day 364
would you expect the same amount of interest from each account on day 365? :cool: Hope not

kidmugsy

Hats off to the earlier commenters: I'm always impressed when you manage to avoid the temptation of expressing yourselves freely at such a question.

Sponge

Yes, congratulations on following forum etiquette which is clearly shown at the top of each page for all to read.