Help to calculate savings interest

YorkshireBoy

Raxximus wrote: »

I simply don't have the time to manage numerous methods...I need a one stop shop

So, back to my earlier suggestion...


Open a pair of Lloyds, or TSB, or BoS accounts.
Set up a pair of monthly £1K standing orders between the 2 accounts.
Deposit any additional monies into one or the other.
Sit back, do nothing, and make between 2-3% AER*.
Once you're approaching £10K in savings review your options.


It doesn't get any easier than that!


Still happy with 1.25%?




* 2% on £1,000-£2,999 and 3% on £3,000 to £5,000

Raxximus

YorkshireBoy wrote: »

So, back to my earlier suggestion...


Open a pair of Lloyds, or TSB, or BoS accounts.
Set up a pair of monthly £1K standing orders between the 2 accounts.
Deposit any additional monies into one or the other.
Sit back, do nothing, and make between 2-3% AER*.
Once you're approaching £10K in savings review your options.


It doesn't get any easier than that!


Still happy with 1.25%?




* 2% on £1,000-£2,999 and 3% on £3,000 to £5,000

Hmm, I've been absorbing the comments...... I didn't realise that just transferring in/out money to meet funding would constitute meeting the conditions, so what you suggest is completely in line with their operating conditions? So what if I have a Santandar 123 account and a Lloyds Vantage, put 3k in each account at opening and setup as you say a 1k montly transfer between the two. When the Lloyds one reaches 5k I could just dump that into the Santandar (up to 20k) and continue by in/out of £500 to my current account.......??

Maybe after absorbing the comments I'm coming round to this idea........

YorkshireBoy

Raxximus wrote: »

I didn't realise that just transferring in/out money to meet funding would constitute meeting the conditions, so what you suggest is completely in line with their operating conditions?

Yes, with the accounts I mentioned.

So what if I have a Santandar 123 account and a Lloyds Vantage

Now you're changing your criteria! You said you wanted it simple, so why complicate things with a second bank?

put 3k in each account at opening and setup as you say a 1k montly transfer between the two. When the Lloyds one reaches 5k I could just dump that into the Santandar (up to 20k) and continue by in/out of £500 to my current account.......??

Why are you even considering Santander? That will cost you £24 a year in account fees, unless you're prepared to move cashback generating DDs to it which will offset/eliminate the fees?...which means more work...something which you were keen to avoid.

Maybe after absorbing the comments I'm coming round to this idea........

Good, because all our knuckles are hurting from knocking at your door. And it turns out you were in after all!

ColdIron

Raxximus wrote: »

Maybe after absorbing the comments I'm coming round to this idea........

By jove, he's got it

If I were you I wouldn't go for a Lloyds/Santander combination, do one or the other to start with. If you can benefit from the DDs the 123 is the simplest and more rewarding with more space to grow, if not perhaps a brace of Vantages as suggested by YB. You can fund either of these by SO from your current account

You also get instant faster payments, a debit card and decent internet banking

Raxximus

YorkshireBoy wrote: »

Yes, with the accounts I mentioned.Now you're changing your criteria! You said you wanted it simple, so why complicate things with a second bank?Why are you even considering Santander? That will cost you £24 a year in account fees, unless you're prepared to move cashback generating DDs to it which will offset/eliminate the fees?...which means more work...something which you were keen to avoid.Good, because all our knuckles are hurting from knocking at your door. And it turns out you were in after all!

"You said you wanted it simple, so why complicate things with a second bank?"
Exploring the options.... since it's being knocked into me oh yes £24 for the 123 and I would not be using this account for anthing else so ok that's a bad idea.

OK so as you say the simplest option for me is the two Lloyds/TSB combination. I didn't check if you are allowed to have two accounts and funding from another Lloyds/TSB account is compliant but when I get a mo will try to find out on their website.

YorkshireBoy

Raxximus wrote: »

I didn't check if you are allowed to have two accounts

You can have a maximum of 3 accounts with Vantage


http://www.lloydsbank.com/legal/current-accounts/vantage.asp

and funding from another Lloyds/TSB account is compliant but when I get a mo will try to find out on their website.

You won't find a statement saying "it's OK to fund from another of your current accounts that you're using purely as a savings account and hence are taking advantage of us".


In other words, with T&Cs you're looking for what they don't say, as well as what they do say.

Raxximus

YorkshireBoy wrote: »

You won't find a statement saying "it's OK to fund from another of your current accounts that you're using purely as a savings account and hence are taking advantage of us".


In other words, with T&Cs you're looking for what they don't say, as well as what they do say.

Cool, thanks. My only other concern is the history of electronic glitches suffered by Lloyds/TSB customers over the last year, last one was just in Jan 2014 I think, should be concerened?

YorkshireBoy

Raxximus wrote: »

Cool, thanks. My only other concern is the history of electronic glitches suffered by Lloyds/TSB customers over the last year, last one was just in Jan 2014 I think, should be concerened?

Wasn't the one last month a 3 hour issue with debit cards on a Sunday afternoon? Not the end of the world is it? A secondary account elsewhere (which you already have and will maintain?), or a credit card (do you have one?), would have prevented that becoming a major issue for you.


As to others, I don't remember any last year.

ColdIron

Raxximus wrote: »

My only other concern is the history of electronic glitches suffered by Lloyds/TSB customers over the last year

That's another reason why you should have more than one current account

ViolaLass

Raxximus wrote: »

I was looking at their figures, it seems if one saves £500 per month then the rate is 2.5%AER so I got my calculator out and tried some sums, on their website is says "Interest calculated monthly and paid annually" so on £500 @2.5% (gross) that's £12.50 gross per month right? so over 12 months same investment =£150 gross interest? or am I going mad? becuase I read the last line the example it says:

"For example, if you saved £500 a month for 12 months without making any withdrawals, you would earn £81.50 gross interest by the anniversary of the first deposit based on the current variable rate of 2.50% gross p.a./AER"

How do they get £81.50 annual gross interest at 2.5% AER calculated monthly on fixed investment of £500 per month ??

Interest rates are annual ones i.e it's 2.5% per YEAR, not per MONTH. Also, the investment isn't fixed i.e. put £500 in and leave it, you're adding an extra £500 each month.