Regular saver accounts

fenwick458

I have just realised I have access to 3 regular saver accounts (Santander 5%, HSBC 6%, TSB 5%)
I have 12k in santander 123 currently earning 3%, so just trying to figure out how much these accounts will make me in a year, to see if it's worth opening them up and putting the max in every month.
the high rates seem appealing, but I seem to remember 10 ish years ago barclays and HSBC offered 8 or even 10% regular savings, and I saved in both of them and then was disappointed at the end of the year when I received the interest that it wasn't 10% of what I had in at the end. not sure how they work it out but it was a lot less than I was expecting.

so can anyone explain how much I will net(after tax) from:
EDIT; found the calculator heres the results:

HSBC, £250 per month, £3000 total @ 6%= £96.63
Santander, £200 per month, £2400 total @ 5%= £64.52
TSB, £250 per month, £3000 total @5% = £80.64
First direct, £300 per month, £3600 total @6%= £115.96

xylophone

http://www.moneysavingexpert.com/savings/best-regular-savings-accounts

Calculator at the end of the article.

YorkshireBoy

fenwick458 wrote: »

I have just realised I have access to 3 regular saver accounts (Santander 5%, HSBC 6%, TSB 5%)
I have 12k in santander 123 currently earning 3%, so just trying to figure out how much these accounts will make me in a year, to see if it's worth opening them up and putting the max in every month.
the high rates seem appealing, but I seem to remember 10 ish years ago barclays and HSBC offered 8 or even 10% regular savings, and I saved in both of them and then was disappointed at the end of the year when I received the interest that it wasn't 10% of what I had in at the end. not sure how they work it out but it was a lot less than I was expecting.

so can anyone explain how much I will net(after tax) from:

HSBC, £250 per month, £3000 total @ 6%=
Santander, £200 per month, £2400 total @ 5%=
TSB, £250 per month, £3000 total @5% =
First direct, £300 per month, £3600 total @6%=

already got the last one just curious to see how much it will make.

Aren't there worked examples on their respective websites? When you've found the information you could come back and edit your post to include the answers for the benefit of others in a similar situation.


As to "is it worth it?", well if you drip feed from a 3% AER account into a 6% AER account over the course of a year your average interest rate on the total amount transferred is (a little over) 4.5% AER isn't it? So in this case you'll get (a little over) 50% more interest than you would by just leaving it in Santander.

bigadaj

fenwick458 wrote: »

I have just realised I have access to 3 regular saver accounts (Santander 5%, HSBC 6%, TSB 5%)
I have 12k in santander 123 currently earning 3%, so just trying to figure out how much these accounts will make me in a year, to see if it's worth opening them up and putting the max in every month.
the high rates seem appealing, but I seem to remember 10 ish years ago barclays and HSBC offered 8 or even 10% regular savings, and I saved in both of them and then was disappointed at the end of the year when I received the interest that it wasn't 10% of what I had in at the end. not sure how they work it out but it was a lot less than I was expecting.

so can anyone explain how much I will net(after tax) from:
EDIT; found the calculator heres the results:

HSBC, £250 per month, £3000 total @ 6%= £96.63
Santander, £200 per month, £2400 total @ 5%= £64.52
TSB, £250 per month, £3000 total @5% = £80.64
First direct, £300 per month, £3600 total @6%= £115.96

As above, you're actually getting 2.5% on your 123 account.

fenwick458

YorkshireBoy wrote: »

Aren't there worked examples on their respective websites? When you've found the information you could come back and edit your post to include the answers for the benefit of others in a similar situation.


As to "is it worth it?", well if you drip feed from a 3% AER account into a 6% AER account over the course of a year your average interest rate on the total amount transferred is (a little over) 4.5% AER isn't it? So in this case you'll get (a little over) 50% more interest than you would by just leaving it in Santander.

ok so I will get £242 from the 3 regular savers, but then I will have £8400 less in my santander 123 account after a year and get less interest from that. so how do I work out how much less interest i will get from the santandr 123?

YorkshireBoy

bigadaj wrote: »

As above, you're actually getting 2.5% on your 123 account.

...and if you're going to drip feed into several regular savers from here, without replenishing each month from income, that rate will plummet further due to the monthly fee.

For that reason you may wish to consider other options for the £12K lump, such as BoS and Tesco (presumably you must already have the 5% and 4% paying accounts, otherwise why are you prepared to accept a lowly 3% rate at Santander?).

YorkshireBoy

fenwick458 wrote: »

ok so I will get £242 from the 3 regular savers, but then I will have £8400 less in my santander 123 account after a year and get less interest from that. so how do I work out how much less interest i will get from the santandr 123?

For Santander drip feeding a 6% regular saver at M&S the total returned is made up of 2 figures...

(12 x £250) x 6% / 12 x 6.5 is the interest the £3K makes at M&S (£97.50)

and

(12 x £250) x 3% / 12 x 5.5 is the interest the £3K makes at Santander whilst waiting to be transferred (£41.25).

So the total interest is £138.75, which represents an aggregate interest rate of 4.625% (which is the "a little over 4.5%" figure I mentioned earlier).

teddysmum

I have, today, had it confirmed that TSB's rate will be falling after June 30th. 2% has been mentioned on here, but the local branch person I spoke to just confirmed when the drop would occur (he checked a document).