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Santander 123 or Lloyds Club Monthly Saver?

I currently save £260pm into a Club Monthly Saver from monthly income. I was wondering if it was worth it (would I gain more interest) if I moved a further £140pm from a Santander 123 account each month for the remaining 10 months of the regular saver.
As it is at 4% I presume I would but the 123 account pays interest monthly and I would have to wait 10 months for the regular saver to pay out, so I'm not sure.
No doubt this is dead simple but I can't get my head round it.
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Comments

  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
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    The 3% and 4% are AERs - annual equivalent rates. The purpose of AERs is that people can compare rates on a like-for-like basis.

    £1,400 in a 123 account will make £28 over 10 months (assuming you don't need to take off the £2/mth charge) for a BR tax payer.

    If you drip-feed £140 into the 4% account, you will have £33 after BR tax at the end of the 10 months.
  • DaveF13
    DaveF13 Posts: 8 Forumite
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    Thanks for the help. So the regular saver is better, as I expected given it's 4% against 3%

    Still don't understand how you calculate it though.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    DaveF13 wrote: »
    Still don't understand how you calculate it though.
    Which bit?

    Archi has given you roughly* what you'd make at Santander...

    £1,400 x 3% / 12 x 10 x 0.8 = £28

    Where 0.8 is the basic rate tax multiplier

    And the second figure of £33 is derived from an average interest rate of (a little over) 3.5%, as you're drip feeding from a 3% account into a 4% account...

    £1,400 x 3.5% / 12 x 10 x 0.8 = £32.66


    * He's used the AER of 3% even though you're not saving for a year.
  • 6022tivo
    6022tivo Posts: 793 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    Both is best
  • Hominu
    Hominu Posts: 1,671 Forumite
    Even if you don't understand the maths, you can still use the MSE Regular Saver calculator. I don't have a link to hand, but typing exactly that into google brought it up for me before.
  • Biggles
    Biggles Posts: 8,209 Forumite
    1,000 Posts Combo Breaker
    You can't do it in quite the way you suggest, though. The T&Cs of the Lloyds Monthly Saver say that 'you can only pay in once a month by standing order'.

    What you would have to do is transfer the £140 to your Club Lloyds current a/c and up the SO to £400.
  • noh
    noh Posts: 5,808 Forumite
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    Biggles wrote: »
    You can't do it in quite the way you suggest, though. The T&Cs of the Lloyds Monthly Saver say that 'you can only pay in once a month by standing order'.

    What you would have to do is transfer the £140 to your Club Lloyds current a/c and up the SO to £400.
    The standing order does not need to come from the Club Lloyds current account though as you say there can only be one payment per month to the regular saver.
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
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    Where did you find the clause that says it must be just one monthly payment? I can't see that is spells out that you can only pay in one single amount a month.

    Also, Lloyds couldn't possibly tell whether the money comes via SO or FP if it comes from a non-Lloyds account. So whilst talk about "a Standing Order" might imply one SO, it is actually quite meaningless IMO.

    Having said this, I haven't tried either - my monthly £400 comes by SO from my Club Lloyds
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    Archi_Bald wrote: »
    Where did you find the clause that says it must be just one monthly payment?
    Not a "clause" as such, but they say it in the general information...
    You can make as many withdrawals as you like into your Club Lloyds current account, but you can only pay in once a month by standing order...


    http://www.lloydsbank.com/savings/club-lloyds-monthly-saver.asp
  • noh
    noh Posts: 5,808 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    http://www.lloydsbank.com/savings/club-lloyds-monthly-saver.asp

    "You can only pay in once a month by standing order.."

    I fund mine and my ordinary Lloyd's regular saver with a SO from a Nationwide account. I have funded a previous Lloyd's regular saver this way. You're right that they can't tell the difference between a SO and a FP as SO are really future dated FP and show as an incoming FP when received in the regular saver.
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