Nottingham B.S 5% Christmas reg saver launched

veryintrigued

Mikey17 wrote: »

I do not know what you are talking about. If someone had £3000 and put it into a fixed rate , at 2 % ( currently available ) they would earn £ 60 interest. The so called 5 % xmas saver , works out at
£ 69 max interest ( only £9 more ) and you have to go into the branch.
They put these " get 5 % " offers , making out they are fantastic, but limit the amount you can put in monthly ( £250 )
If i could get 5% on £ 3000 (lump sum ), I would be there first thing in the morning

Having said that, I appreciate the fact that you posted about the offer, even if i am not interested

Clearly. I'll try once more.

Say you have numerous R.S accounts like lots of us have. And say you're paying a total of £3000 into them monthly and they are a mismatch of % rates but an average of 5% (to make it easy and by coincidence its about my average rate at the moment on R.S)

Whats the interest on the first month (and the second and the third etc etc).

Is it 5%?

Or alternatively - lets say you open the 2% account and its instant access. Put your £3000 into it and then month by month drip feed £250 into this NBS account.

Whats the interest over the year? More than 2%? i.e. you are currently stating that if you had £3000 and opened one of these NBS accounts you'd leave the other bit uninvested.

YorkshireBoy

Mikey17 wrote: »

They put these " get 5 % " offers , making out they are fantastic, but limit the amount you can put in monthly ( £250 )

You're forgetting that some people don't have the luxury of a lump sum...but they do have (up to) £250 per month to save.

To those people, 5% is indeed "fantastic" because the alternative is 1.xx% in an 'ordinary' savings account.

Mikey17 wrote: »

If i could get 5% on £ 3000 (lump sum ), I would be there first thing in the morning

I have considerably more than that earning 5% with Nationwide (in 3 x FlexDirect accounts).

veryintrigued

YorkshireBoy wrote: »

I have considerably more than that earning 5% with Nationwide (in 3 x FlexDirect accounts).

Ditto.

And for any other spare monthly incomings RS accounts like this one at NBS (and other accounts with them as they have released three a year the last two years), and FD etc etc etc are all great.

Archi_Bald

Mikey17, may be playing with the MSE Reg Savings Calc will show you a few new ways, even for those people with lump sums, including those who have maxed all the 3, 4 and 5% accounts in the market: http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#savingscalc

adindas

Mikey17 wrote: »

Have i got this right ?
£ 250 per month for 1 year = £ 3000 & 5% a month = £ 3,069.71
Equivalent to about 2;3 % interest
That does not seem anything to get too excited about

Equivalent of interest rate you mention is quite right (e.g. must be less than 2.5%). Unless they are very silly many people already aware about this as it is very naive to think that the bank will give you interest for the money you have not paid.

You and might be few people in this forum fail to appreciate the benefit of this account because they thought they had similar circumstance with others. Here are some explanation that might help you to see the light :

- Some people do not have lump sum of £3,000 to save but instead they only have £250 monthly to invest.

- Those who have lump sum of more than £3,000 and read this forum regularly will by all mean have optimised any other banking products which earn higher equivalent interest than this RS account. For instance people who have £30,000 (say) to save, it is very likely they already have NW flex direct accounts, Lloyd Vantage, TSB Enhance, etc leaving this RSA one of the best available option left. As pointed out by innovate at the moment, the lump sum option for saving account paying 5% on £3,000 doesn't exist in the market at the moment. But if you could find one no brainer it is a much better option.

- Also people with lump sum of more than £3,000 will use this account to drip feed from the existing account which currently pays less than 5% to gradually move their money to higher interest rate in this account. Here is explanation of dripfeed
http://www.moneysavingexpert.com/savings/best-regular-savings-accounts

Now got it ?

innovate wrote: »

The rate is good for 12 months, full stop.

Well why not half stop

planteria

veryintrigued wrote: »

I've currently got the following regular savers with Nottingham:

5% at £250 per month
6% at £100 per month
3.1% at £250 per month
and this new one at 5% at £250.

I love high paying regular saver 'gimmicks' like this!!

:T

good going. i am currently using HSBC at 6% and WBBS at 4.1%.

this is a good account. i am already a member of NottinghamBS, but am not local. can i open one of these:question:

planteria

totally with you sentiments here adindas.

adindas wrote: »

Equivalent of interest rate you mention is quite right (e.g. must be less than 2.5%). Unless they are very silly many people already aware about this as it is very naive to think that the bank will give you interest for the money you have not paid

this point is referred to in the TESP thread in the ISAs and Tax-Free Savings forum. Friendly Societies do exactly that with TESPs, in return for a commitment to save for an agreed period of time, which i think is an interesting concept.

adindas wrote: »

- Also people with lump sum of more than £3,000 will use this account to drip feed from the existing account which currently pays less than 5% to gradually move their money to higher interest rate in this account...

very good point. it's not really relevant to compare a lump-sum savings account with a regular saver. and i will be at a Nottingham branch this week with a view to opening one of these accounts, which will be funded from my S123 account which earns 3%.

Smi1er

Nottingham BS..... Oh yes:rotfl: UK's smallest branch?.... But they have appeared to shut the Broom Cupboard.....;)

planteria

that rings a bell. where was it?

KuchKuch

I can confirm from my own experience that this account can be opened by post. Anyone who wishes to open an account must complete the application form that was made available earlier in the thread and send it to:

Nottingham Building Society,
Nottingham House,
Huntingdon Court,
3 Fulforth Street,
Nottingham,
NG1 3DL

If you don't have an existing account with the Nottingham Building Society then you will have to send a certified copy of a valid passport or photocard driving licence.