A question for those good at number crunching.

harz99

Over 12 months is a regular saver of £250 per month @ 3% better than a lump sum of £3000 @ 1.25% for the whole year?

Calculations such as this are not my forte, so any help will be gratefully received!

ColdIron

Try the Regular Savings Calculator
http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#calculator

rb10

I assume from this you have a lump sum of £3k...?

Before the money is paid into the Regular Saver, where will it be? I'm assuming it'll be in the 1.25% account (i.e. you'll get some interest from there before the money is paid into the regular saver).

If this is the case, then from doing the Regular Saver, you can expect to get around £66 before tax.

Keeping it all in the 1.25% account for the whole year would get £37 before tax.

But the question really should be why not use a Nationwide FlexDirect account (£125) or Lloyds/TSB/Bank of Scotland Vantage account (£90) instead?

harz99

rb10 wrote: »

I assume from this you have a lump sum of £3k...?

Before the money is paid into the Regular Saver, where will it be? I'm assuming it'll be in the 1.25% account (i.e. you'll get some interest from there before the money is paid into the regular saver).

If this is the case, then from doing the Regular Saver, you can expect to get around £66 before tax.

Keeping it all in the 1.25% account for the whole year would get £37 before tax.

But the question really should be why not use a Nationwide FlexDirect account (£125) or Lloyds/TSB/Bank of Scotland Vantage account (£90) instead?

Thanks for the suggestions, but not as simple as that.

My wife has a BOS saver coming to the end of the bonus period in a few days (drops to 0.1%) with around £3k to reinvest.

The FlexDirect and Vantage accounts are out as she would not be paying in the required monthly amount to qualify -neither would she benefit from the NW Flexplus as the monthly fee would outweigh the interest and we already have those benefits via my own NW Flexplus.

It looks like funds back to BOS current a/c and £250 per month to the BOS regular saver (3%) will have to be the way, as she doesn't want anything too complicated!!

bigadaj

harz99 wrote: »

Thanks for the suggestions, but not as simple as that.

My wife has a BOS saver coming to the end of the bonus period in a few days (drops to 0.1%) with around £3k to reinvest.

The FlexDirect and Vantage accounts are out as she would not be paying in the required monthly amount to qualify -neither would she benefit from the NW Flexplus as the monthly fee would outweigh the interest and we already have those benefits via my own NW Flexplus.

It looks like funds back to BOS current a/c and £250 per month to the BOS regular saver (3%) will have to be the way, as she doesn't want anything too complicated!!

You can just recycle money through accounts, though generally not froma. Single institution, so moving it back and fore between the Bo's and nationwide account would meet the funding requirement.

harz99

bigadaj wrote: »

You can just recycle money through accounts, though generally not froma. Single institution, so moving it back and fore between the Bo's and nationwide account would meet the funding requirement.

Thanks, but as I said she doesn't want anything too complicated - her words.

bigadaj

harz99 wrote: »

Thanks, but as I said she doesn't want anything too complicated - her words.

Fair enough, might take anything up to ten minutes to set up online, but it's free country

YorkshireBoy

harz99 wrote: »

Thanks, but as I said she doesn't want anything too complicated - her words.

It's no more complicated than a regular saver is it?

The regular saver requires a standing order to service it.

The FlexDirect requires 2 standing orders...one to deposit, and one to withdraw. Combine it with a Vantage/Enhance account and she'll be getting nearly 4% AER on her cash.

In each case though, you only set the standing orders up once.

So, 10 minutes work in a year is too much?

harz99

YorkshireBoy wrote: »

It's no more complicated than a regular saver is it?

The regular saver requires a standing order to service it.

The FlexDirect requires 2 standing orders...one to deposit, and one to withdraw. Combine it with a Vantage/Enhance account and she'll be getting nearly 4% AER on her cash.

In each case though, you only set the standing orders up once.

So, 10 minutes work in a year is too much?

For me no, for my technophobe wife yes. She is only happy if she can walk to our main street and get the staff in the BOS branch to set things up for her, hence why her current savings and most future ones will be with HBOS.

Thanks anyway.:)