Help, I can’t get my head around a Martin Lewis regular saver recommendation.

The_Earl_of_Streatham

...that has already started and ends August 31st 2017. First payment is by cheque which won’t clear until December so this is now a 9 month product.

No it isn't. The account does not have a specified end date.

The account doesn't have a specified end date but the 1.8% bonus does, August 31st 2017. They may renew the bonus or they may revert to the 0.5% underlying rate on the account. Since these things are intended to draw in new customers, I'd guess the latter.

jimjames

bigadaj wrote: »

I still can't seem to find these accounts that pay interest on money you haven't put in as yet, can anyone point me in the right direction?

Considering the number of people who come on here thinking they can put money in an ISA on 4th April and get a year's worth of interest it's fortunate that they're not running a bank. I think there might be a few complaints if the same calculation was applied to loan interest.

teddysmum

Another way of looking at it :


Suppose you deposit a regular £100/month.


The first £100 will be in for a full year so earns 2.3% of £100.
The next will only be in for 11 months so earns 11/12 of this.
The next will be in for 10 months, so 10/12 and so on.


(This is a simplification , if they compound monthly, as the interest will be included with capital, but I believe these regular savers only pay interest at the end or 12 months, so this does not apply.)

bigadaj

jimjames wrote: »

Considering the number of people who come on here thinking they can put money in an ISA on 4th April and get a year's worth of interest it's fortunate that they're not running a bank. I think there might be a few complaints if the same calculation was applied to loan interest.

It's slightly different if you run a bank.

Lose a few billion of shareholders money but retain the bonus.

darkidoe

bigadaj wrote: »

I still can't seem to find these accounts that pay interest on money you haven't put in as yet, can anyone point me in the right direction?

I think you need a time machine.