Monthly Saver

YorkshireBoy

jimjames wrote: »

I'm not sure about the calculation to get 12.5% though, can you explain?

The Reward is paid net of BR tax, so grossed up (on a like for like basis, because you've used the FlexDirect's 5% AER figure) it's £6.25...and 12 x £6.25 plus your £50 is £125 per annum return on your £1K.


By the way, if your FlexDirect account(s) is/are full, you're not getting 5% AER, but 4.89% gross p.a.

Gromitt

ColdIron wrote: »

Both the Lloyds and TSB Monthly Savers were 3% but have dropped to 2% recently (10/12/2013)

TSB is still 3% for existing customers. I've not checked LLoyds.

ColdIron

Gromitt wrote: »

TSB is still 3% for existing customers. I've not checked LLoyds.

The interest rate is fixed for a year from when you opened the account so anyone that started one before 10/12/2013 will still get 3% but any accounts opened on or after that date get the current 2% for both Lloyds and TSB

jimjames

YorkshireBoy wrote: »

The Reward is paid net of BR tax, so grossed up (on a like for like basis, because you've used the FlexDirect's 5% AER figure) it's £6.25...and 12 x £6.25 plus your £50 is £125 per annum return on your £1K.

That makes sense. I'd not realised it was net as I'd read it needed to be declared on my return.

With those numbers it makes it look even better as a return - just a shame it's only possible to get that "rate" on £1000!

Hominu

Its not really a return on 1K though, it just needs 1K to trigger it, which could be £100 withdrawn and deposited 10 times for all Halifax care.

£60 return on £0 is Infinity% AER.

But it can combined with other factors like JJ shows.

lawriejones1

jimjames wrote: »

The streets near you must be paved with gold or very careless people.

I can get 11% on £1000 savings (annual interest = £110) with 2 high street banks so I doubt you'd pick that up as loose change.

That's still less than £10 per month, and I reckon - with some judicious walking and my good contact lenses in - I could pick up £10 on the street every month. Couple that with finding the odd note here and there (more likely around Christmas and New Year) and I reckon I would clear £110.

My point was that the interest rate for most savers is (at the moment) laughable and that the apparent security of these accounts masks the fact that, with a little thought and a little exposure to risk, you can make a great deal more from your money.
Personally I've made hundreds through buying and selling items of interest, and have now invested in a new business that returns good amounts every month - admittedly with some effort on my part, but not huge amounts.

I'm not saying it's easy, it most certainly isn't, but you can certainly make your money work for you much better than sitting in an account.

Perhaps that's just me, child of the 80s and all that.

jimjames

lawriejones1 wrote: »

I'm not saying it's easy, it most certainly isn't, but you can certainly make your money work for you much better than sitting in an account.

I completely agree and hold very little cash in accounts myself. I never use cash ISAs and all my money goes into S&S ISAs for better long term returns.

Having said that, what I was trying to show is that reasonable returns are available for smaller amounts if you put some effort in. I can't think that returns of 12.5% gross for savings have been available for a long time - probably since 1990 or so when interest rates were at 15% so we aren't as badly off now as some might imagine.

JohnRo

jimjames wrote: »

..I can't think that returns of 12.5% gross for savings have been available for a long time - probably since 1990 or so when interest rates were at 15% so we aren't as badly off now as some might imagine.

It only applies to small capped sums of money that mean very little though, sure the rate when stated like that is attention grabbing and every little extra helps of course but the real world numbers in terms of extra tickets isn't nearly as exciting.

Given that inflation is far higher than we're told for most ordinary folks, a tiny bonus is of little comfort. I'd rather see banks offering a reliable rate and stop all the obstacle course nonsense designed to make the majority of people capitulate and accept utterly crap negative real return basic rates.