Nottingham 4% Regular saver Isa 2014/15

bsms1147

will-he-payitoff wrote: »

Anyone know what the interest rate would work out if you deposited £1250 pm for the first 4 months?

Roughly 4% AER.

veryintrigued

MRMX9 wrote: »

The problem with fixed term/12 months is that the deal ends then.

So you never get 4% on your cash - apart from on your first instalment.

I'd do your sums again if I were you as you are wrong.

Its 4% on whatever you invest. Do you expect NBS to give you 4% on something you dont invest?

liamcov

escapee wrote: »

Therefore this interest rate is effectively closer to 2.17% over the course of the year rather than 4%.

So is it better to go with an instant ISA to dump the money in one go? If so which is the best?

innovate

escapee wrote: »

Therefore this interest rate is effectively closer to 2.17% over the course of the year rather than 4%.

The interest rate is 4%, no doubt about it. Of course you will not get any interest on money you have never deposited, thus you will not get 4% on a lumpsum.

If you have a lumpsum, it might be better to put it straight into an ISAS that allows lumpsum deposits. Or keep your lumpsum in one or two current accounts until next March, when it will still be plenty of time to use up your allowance for this year.

A quick spreadsheet will help with working out what is better for you.

innovate

liamcov wrote: »

So is it better to go with an instant ISA to dump the money in one go? If so which is the best?

How much money are you planning to put into your ISA, and when? Any sensible comment depends on your answers.

liamcov

innovate wrote: »

How much money are you planning to put into your ISA, and when? Any sensible comment depends on your answers.

Thanks for the quick response.

I am already using the top bank accounts at 5 / 4 / 3% so I'm guessing an ISA is the best bet for the rest of my savings.

I can either to regular saving like this for 4% or can put the whole allowance in at once if this will beat the 4% overall, but the highest rate I think is around 1.5% so I'm guessing the NBS 4% is the best bet?

innovate

£1,250 a month will yield £323 over 12 months in a 4% ISA, a bit more if you dripfeed from one of your current accounts.

If you put £5,940 into a 1.5% one now, and the remaining £9,060 in July, your yield will be round about £158.

You would need to find an ISA that pays at least 3.1% to beat the 4% Reg Saver one for your scenario.

Use a spreadsheet!

YorkshireBoy

innovate wrote: »

If you put £5,940 into a 1.5% one now, and the remaining £9,060 in July, your yield will be round about £158.

Nearer £200 (to the tax year end) surely?


£5940 x 1.5% / 52 x 11 = £18.84
£15,000 x 1.5% / 52 x 40 = £173.07
Total = £191.91


Plus whatever the poster makes on the 'spare' £9,060 between now and July 1st.

innovate

I did my calcs with months rather than weeks, though not sure why there would be such a difference. Deleted the SS now, and won't do it again.....the fundamental message remains the same.

thenudeone

thenudeone wrote: »

IIRC existing customers can usually open by post even if the conditions say "branch only"

They may have allowed this in the past but they are not doing so now, for the 4% ISA.

Just had the application form returned stating I must apply in branch,
even though I'm an existing customer, so I'll be applying to Saffron instead.