Nationwide Flex Regular Saver 13th payment

talexuser

In my spreadsheet configured for daily interest I put in the following 3 scenarios:

Open 3 Dec 2015 with £500 first payment, 12 other payments, closing 2 Dec 2016, interest £162.18

Open 15 Dec 2015 with £500 first payment, 12 other payments, closing 14 Dec 2016, interest £172.01

Open 29 Dec 2015 with £500 first payment, 12 other payments, closing 28 Dec 2016, interest £183.53

all examples have a balance of £6500, my personal opening is 22 Dec which should be £177.76. It will be interesting to see what actually happens.

YorkshireBoy

2010 wrote: »

My first £500 went in on 11th Dec 2015 and gained interest for the rest of that month (20 days)
It matures on 10th next month.
By putting another £500 in on the 1st of next month I`ll get 10 days interest.
Therefore for the whole year I still get 364/365 days interest.

Yes, but for 10 of them you have a £500 greater balance so will make another 68p.

Not sure where 364, or even 365, comes from? 11/12/15 to 10/12/16 is 366 days isn't it?


@ talexuser - did you use 365 or 366 days in your calculations?

talexuser

YorkshireBoy wrote: »

@ talexuser - did you use 365 or 366 days in your calculations?

the actual dates above. Adding one day at the end gets an extra 88 or 90 pence depending on example.

2010

YorkshireBoy wrote: »

Not sure where 364, or even 365, comes from? 11/12/15 to 10/12/16 is 366 days isn't it?

Should be, but very often the first day and last day doesn`t count with some companies.

TheShape

talexuser wrote: »

In my spreadsheet configured for daily interest I put in the following 3 scenarios:

Open 3 Dec 2015 with £500 first payment, 12 other payments, closing 2 Dec 2016, interest £162.18

Open 15 Dec 2015 with £500 first payment, 12 other payments, closing 14 Dec 2016, interest £172.01

Open 29 Dec 2015 with £500 first payment, 12 other payments, closing 28 Dec 2016, interest £183.53

all examples have a balance of £6500, my personal opening is 22 Dec which should be £177.76. It will be interesting to see what actually happens.

In your example it looks to be the case that waiting earns you more interest but shouldn't you also account for the interest 'lost' on £500 not invested/saved for those 26 days between 03 Dec and 29 Dec?

Or alternatively factor in the 26 days at the end where the full £6500 could be earning interest somewhere?

2010

talexuser wrote: »

In my spreadsheet configured for daily interest I put in the following 3 scenarios:

Open 3 Dec 2015 with £500 first payment, 12 other payments, closing 2 Dec 2016, interest £162.18

Open 15 Dec 2015 with £500 first payment, 12 other payments, closing 14 Dec 2016, interest £172.01

Open 29 Dec 2015 with £500 first payment, 12 other payments, closing 28 Dec 2016, interest £183.53

all examples have a balance of £6500, my personal opening is 22 Dec which should be £177.76. It will be interesting to see what actually happens.

Yes and maybe for the new flex reg saver you`d tell us the best time of next month to open it.
I`m assuming there will be the whole month of Dec 16 to open it.

apt

2010 wrote: »

Yes and maybe for the new flex reg saver you`d tell us the best time of next month to open it.
I`m assuming there will be the whole month of Dec 16 to open it.

There's no reason to assume that the account will be available for the whole month and even less to think that the interest rate will stay at 5%. I will be opening the account ASAP.

Westie983

Looking at what most of the other regular saver accounts have done, I would make the assumption when this current one ends, that started December 1st the rate will drop, so I will be opening the next one as soon as the current one is transferred online, this is the same practice that I did for FD and HSBC, and a week later both dropped their rates to 5% from 6%.

As this is the first year on the regular saver, its just a waiting game to see what they do, Mine matures November 30th, and will probably allow me to open a new on the following day, or in the early hours...

Just think this maybe the best one to continue with, especially with Bucks reducing rate just as I opened one, and the Leeds will be probably pulling issue 3 of their regular saver account, need to find the best place to place funds, and I like that nationwide allow multiple payments over the month, that is not a perk of some of my other RS,

2010

Considering the massive profits N/W make and as they keep telling us,no shareholdres to pay,there`s no reason to cut the 5% rate on the limited amount that you can put into it anyway.
Also it is a linked account.
No current account that has conditions, no flex reg saver.

talexuser

TheShape wrote: »

In your example it looks to be the case that waiting earns you more interest but shouldn't you also account for the interest 'lost' on £500 not invested/saved for those 26 days between 03 Dec and 29 Dec?

Or alternatively factor in the 26 days at the end where the full £6500 could be earning interest somewhere?

That's for you to do, since I have no idea what everyone's other interest rates are, and the variables are limitless. But it should be quite obvious from the outset that whatever realistic instant access interest rate you can manage, a month of 6500 will always be more than a month of 500, but you can't get max interest on 6500 lump sum, otherwise you wouldn't bother with this regular saver.

So let's assume you have a TSB current and it is not full to the £2000 so you could have your first £500 there at 5%, the interest from 3 Dec to 28 Dec would be £1.74 - whew, calm my beating heart.

Now I don't know of any account where you can get 5% on £6500 instantly for the other example, but lets have a big assumption you have a completely empty BoS current where you can get 3% on 5k, the interest from 2 Dec to 29 Dec would be £10.94, plus another quid on the other 1k5 at 1% in a instant access.

It should be obvious you can't beat end of month if wishing to scratch for the last penny.