What's the easiest way to drip save £400 a month and get over 3% after tax?

uknick

Eco_Miser wrote: »

Study https://forums.moneysavingexpert.com/discussion/608697
You can save £1700 a month at 4% or more.

I didn't know there was a regular saver that gave an actual annual gross return of 4%? Where is this?

Archi_Bald

uknick wrote: »

I didn't know there was a regular saver that gave an actual annual gross return of 4%? Where is this?

Club Lloyds
KRBS
N&P
HSBC (if you don't hold an HSBC Advance)

Full list of best RS accounts: https://forums.moneysavingexpert.com/discussion/608697

uknick

Archi_Bald wrote: »

Club Lloyds
KRBS
N&P
HSBC (if you don't hold an HSBC Advance)

Full list of best RS accounts: https://forums.moneysavingexpert.com/discussion/608697

The OP is looking for a 3% return after tax to beat his mortgage payments. I'm not sure he can do this. Unless, his mortgage lender calculates the interest in the same way as the regular saver accounts.

None of the accounts quoted give an actual annual return of 3% after tax. Lloyds may well cite a 4% AER for their regular saver, but that is only applicable to the first month's investment as that is the only one held for a full year. The actual net return on the £4,800 you could invest is about 1.7%.

From the examples you gave, the best choice for him seems to be the HSBC as this comes close at about 2.6% net return. But as that is limited to £300 per month they are going to have to find another to make up the £400 they want to save.

saintalan

An AER is an AER!

The OP wants to drip feed he will get the AER for all his regular investment!

masonic

uknick wrote: »

None of the accounts quoted give an actual annual return of 3% after tax. Lloyds may well cite a 4% AER for their regular saver, but that is only applicable to the first month's investment as that is the only one held for a full year. The actual net return on the £4,800 you could invest is about 1.7%.

From the examples you gave, the best choice for him seems to be the HSBC as this comes close at about 2.6% net return. But as that is limited to £300 per month they are going to have to find another to make up the £400 they want to save.

The OP is comparing putting £400 per month into mortgage overpayments vs a savings account, so both involve the same monthly contributions and the rates can be directly compared. In other words, to use your logic, the mortgage overpayments aren't giving a net gain of 3%.

Archi_Bald

Just in case nobody has said yet that an AER is an AER: an AER is an AER

Go to the National Numeracy Challenge website https://www.nnchallenge.org.uk/home/index.html for more unexpected information

Savingdad

My LTV is 20% and I have plans in place to pay off completely in 3years but I'm wondering if I can make mybmoney work a bit harder for me in those years.
My overpayments currently bring my interest payments down £1 a month so my minimum payments would bring it down 50p so I think I'm effectively saving about £6 a year by overpaying but in the last 4 months my £5000 in high interest accounts has brought me £56 so I want to make my overpayments earn me more before they go to the lender.
Today I saw a tsb monthly saver paying 5% and as I already have a current account I can open and drip feed immediately, thats£250 a month and I can open my son a child saver and get 6% on his contribution.

nyc_451

Archi_Bald wrote: »

Just in case nobody has said yet that an AER is an AER: an AER is an AER

Go to the National Numeracy Challenge website https://www.nnchallenge.org.uk/home/index.html for more unexpected information

Omg this website is awesome, thank you!! :T