Nationwide regular savings account

LXdaddy

AlexMac wrote: »

Now, where do I get these 6% deals?

See https://forums.moneysavingexpert.com/discussion/608697 for the most upto date info

First Direct, HSBC and Marks and Spencer each offer 6% on regular saver accounts (There is a Halifax Kids account too)

Pulpstar

First Direct is paying 6%, so is M&S Bank. You'll need a current account with both to benefit.

Max for First Direct is £300/M&S is £250 / mth.

The interest rate after tax is 4.8% if you're BR; 3.6% HR.

Both owned by HSBC. FD one took 2 mins online, am doing M&S through post now...

Kernel_Sanders

LXdaddy wrote: »

Indeed it does. If you start the June with £100,000 in the account and on the 21st of the month you add £1,000 then the interest rate applicable to June is 2% (Gross AER). You would get 20 days worth of 2% interest on £100,000 and 10 days worth of 2% interest on £101,000.

So if I opened an account today with £1000, would I get interest from today or tomorrow on the basis that the 'balance' at the end of June was zero? If not, could I open one on Friday 31st with £1000 then add another £1000 the following day and get 2% p.a. on £2000 for the whole of August?

LXdaddy

Kernel_Sanders wrote: »

So if I opened an account today with £1000, would I get interest from today or tomorrow on the basis that the 'balance' at the end of June was zero? If not, could I open one on Friday 31st with £1000 then add another £1000 the following day and get 2% p.a. on £2000 for the whole of August?

I believe that the interest is payable from (and including) the date the deposit is made. I believe that the calculation is based on the end of day balance.

If you put £1000 in on 23 July then interest is payable on £1000 for 23/24/25/26/27/28/29/30/31 ie 9 days. If you add another £1000 on 1 Aug (and make no other changes) you would get interest of £2000 for 31 (August) days.

Basically you get interest calculated on the daily balance, the rate for each month depends on the change in balance during the month.

Kernel_Sanders

LXdaddy wrote: »

you would get interest of £2000 for 31 (August) days.

That's extremely generous!

So is the balance increase calculated simply by deducting total withdrawals from total deposits during that calendar month?

Archi_Bald

Kernel_Sanders wrote: »

That's extremely generous!

why would that be extremely generous? You get interest on the money you have in the account. What the interest rate is depends on how much your balance grew by in that month. http://www.nationwide.co.uk/products/savings/regular-savings/rates-and-information#tab:Ratesandinformation

Kernel_Sanders wrote: »

So is the balance increase calculated simply by deducting total withdrawals from total deposits during that calendar month?

could do. Or just compare the balance at month end with balance of previous month end.

jimjames

Archi_Bald wrote: »

why would that be extremely generous? You get interest on the money you have in the account. What the interest rate is depends on how much your balance grew by in that month.

I'm assuming a tongue in cheek comment based on £2000 interest for a month on £1000 deposit! That's generous in my book!

LXdaddy wrote: »

If you put £1000 in on 23 July then interest is payable on £1000 for 23/24/25/26/27/28/29/30/31 ie 9 days. If you add another £1000 on 1 Aug (and make no other changes) you would get interest of £2000 for 31 (August) days.

I'm guessing the word "of" should have been "on"

So interest ON £2000 rather than interest OF £2000.

eskbanker

Archi_Bald wrote: »

why would that be extremely generous?

Re-read the quote from LXdaddy's post, in the context of the smiley face!

Kernel_Sanders

jimjames wrote: »

So interest ON £2000 rather than interest OF £2000.

Yes, OK Jim, I think he gets it now

LXdaddy

Apologies for the typo. Yes indeed it was supposed to say interest ON £2000 rather than interest OF £2000.

Sorry for the confusion but glad I made someone smile at the thought of a financial institution having such generous terms.