re hsbc save together

masonic

You could always consider putting £300 of new money into the HSBC ISA in the new tax year. Save the rest of your allowance until the end of the tax year (I'm sure you can find a better home for it during that time). Top up the HSBC account towards the end of the tax year and transfer it out to join the rest of your ISA money as soon as you've received your last £10 payment.

joe134

masonic wrote: »

You could always consider putting £300 of new money into the HSBC ISA in the new tax year. Save the rest of your allowance until the end of the tax year (I'm sure you can find a better home for it during that time). Top up the HSBC account towards the end of the tax year and transfer it out to join the rest of your ISA money as soon as you've received your last £10 payment.

Thanks masonic, I think that's what I will do.I will then amalgamate the other 2, into Yb et .al I have a large fixed rate bond matures December, I will use that to top up both Isa's £30k then, which will be for 4 months only because, I like to use the Isaallowance's up, it's allowed me to keep taxman away from some of our money.then, start all over again.Already have other top rate A/cs, as well ,. Who said money wasn't hard work;;:rotfl:Fun Innit:beer:

Archi_Bald

joe134 wrote: »

I will use that to top up both Isa's £30k then,

Unless the ISAs are in different names, you can only top up one of them in the same tax year, to £15,240 next tax year.

joe134

Archi_Bald wrote: »

Unless the ISAs are in different names, you can only top up one of them in the same tax year, to £15,240 next tax year.

Hi Archi, they are in separate names.:beer:

TrustyOven

piker1957 wrote: »

Joe I would also add (please accept apologies as I'm sure you already done so, but just in case) have you also opened / plan to open the Monthly Saver you can link to the Advance account which pays 6% gross?

I'm completely undecided if I should take the regular saver. It just doesn't seem worth it.

The 6% is 4.8% after basic rate tax.
If you put the maximum amount (£250) per month, it seems to give you about £77 in interest after the 12 months.

The Tesco current account gives you 3% gross, so 2.4% after BR tax. On same max balance (£3000). A quick calculation shows £72 interest after 12 months.

Unless my maths is wrong, what's the point? I'd love to get one but just not sure if worth it.

Advertised rate: 6%   Basic Rate: 4.8%  0.000131% per day.
Month   Input   Current Balance    Interest        With Interest
1       250     250                0.98            250.98
        250     500.98             1.97            502.95
        250     752.95             2.95            755.91
        250     1005.91            3.95            1009.85
        250     1259.85            4.94            1264.79
6       250     1514.79            5.94            1520.73
        250     1770.73            6.94            1777.68
        250     2027.68            7.95            2035.63
        250     2285.63            8.96            2294.59
        250     2544.59            9.98            2554.56
        250     2804.56            11              2815.56
12      250     3065.56            12.02           3077.58
Total  £3000                    1.0259 = 2.59% effective.

Although I just ran the calculations with FV() and it says interest is £66.89. Why is it so different to my calculated table?

Anyone care to check over my maths? I suspect I've made some stupid mistake somewhere.

masonic

TrustyOven wrote: »

Anyone care to check over my maths? I suspect I've made some stupid mistake somewhere.

The mistake is that you haven't taken into account that as well as the regular saver return, you would also get approximately half the Tesco return, so total is £76+£72*5.5/12 = £109 from dripping a lump sum into the RS from the Tesco account.

TrustyOven

masonic wrote: »

The mistake is that you haven't taken into account that as well as the regular saver return, you would also get approximately half the Tesco return, so total is £76+£72*5.5/12 = £109 from dripping a lump sum into the RS from the Tesco account.

One further question...

Why approx half the Tesco return?

If I am working and earning, the Tesco account will not be depleted.

(assuming Tesco starts with full balance, balances are at end of month)

Month     Tesco                        RegSaver
1              3000 + interest        250 + interest
2              3000 + interest        500 + interest
3              3000 + interest        750 + interest
   (etc.)

masonic

TrustyOven wrote: »

One further question...

Why approx half the Tesco return?

If I am working and earning, the Tesco account will not be depleted.

(assuming Tesco starts with full balance, balances are at end of month)

Well if you are saving from income, then your calculation for the regular saver was correct, but your calculation for the Tesco account was wrong, because you used a lump sum for that calculation. You are comparing whether or not your monthly savings would be better off in the regular saver or Tesco account. Your existing balance is irrelevant to that calculation, so should not be taken into account in either scenario (£250 paid in per month to the Tesco account would generate ~£39 over 12 months).

masonic

TrustyOven wrote: »

Although I just ran the calculations with FV() and it says interest is £66.89. Why is it so different to my calculated table?

Oh, and I notice you've paid and compounded interest monthly in your simulation, which shouldn't happen with the RS. The FV() function also takes a variable to specify whether the money is paid in at the start or end of the period, which, if you set wrongly, would give a lower result. I find the FV() function takes me longer to work out that just deriving the calculation from first principles... i.e. (12+11+10+9+8+7+6+5+4+3+2+1)/(12*12) [fraction of interest earned by the installments vs lump sum] x rate x total balance = 6.5/12 x rate x balance.

Archi_Bald

The easy way to work out your numbers is to use the drip-feed version of the MSE Reg Savings calc