I give up....

karlie88

So, I was replying to a thread about the new pensioner bonds earlier over on 'Hot UK Deals'.

I was reminding people that there are better rates out there with high interest rate current accounts and regular savers.

This was my post: http://www.hotukdeals.com/deals/ns-guaranteed-growth-bonds-now-released-2-8-4-p-a-over-65s-only-2118946#post24130974

Then you get the following reply here.

And then my reply here.

And then their reply here.

And then someone else joins in here.

Followed by another reply here.

Then my reply here.

Followed by another response here.

:cool:

mgdavid

Just laugh at it; it's very very sad but less stressful to you if you treat it as funny. A huge proportion of the population cannot do simple arithmetic yet alone understand something like percentages and interest. These are the same people that can't understand a payslip so don't check them, and tax codes are also a mystery.

Rob_192

Unbelievable, but how many times have we seen this issue on this board - "I've only received £x when I was expecting to received £y" (£y being 6% for the amount in the regular saving account at the end of the year).

APR is surely not a difficult concept?

mgarl10024

Point them at http://www.moneysavingexpert.com/savings/best-regular-savings-accounts, specifically the "Don't believe the bad press" section.

ChesterDog

To be fair, I think there is a tacit understanding born from familiarity among most of us when duscussing these things that by saying "6%" in these circumstances we mean "6% per annum".

veryintrigued

ChesterDog wrote: »

To be fair, I think there is a tacit understanding born from familiarity among most of us when duscussing these things that by saying "6%" in these circumstances we mean "6% per annum".

But if you said 6% a month it would still hold true.

The bit I dont understand is how people can (mis)undertand these accounts such that they somehow feel cheated in not receiving interest on future months money which hasnt yet been been 'deposited'.

Bonkers

ChesterDog

It's because people can infer "6%" without the addition of "APR" or "per annum" as "6% return". They feel cheated because the later contributions (while earning 6% APR) do not earn a 6% return before maturity of the account. If indeed, the account or its terms have a finite term.

veryintrigued

ChesterDog wrote: »

....because the later contributions (while earning 6% APR) do not earn a 6% return before maturity of the account.....

Now am confused....

Maybe the bit above is just badly worded but...the later contributions DO earn 6%. They just earn it over a shorter period.

Archi_Bald

Can I point out that savings accounts do not have APRs but AERs.

http://www.moneysavingexpert.com/banking/interest-rates

ChesterDog

veryintrigued wrote: »

Now am confused....

Maybe the bit above is just badly worded but...the later contributions DO earn 6%. They just earn it over a shorter period.

No, they earn 6% PA, or as Archibald rightly points out AER.

By which there is a significant difference between 6% as an amount, and 6% AER as a rate at which that amount is earned.

karlie88

And again on another thread: http://www.hotukdeals.com/deals/125-00-halifax-bank-account-switch-no-restrictions-225-cashback-with-other-info-2143577?p=24415489

Sigh...