Dissapointed with interest on regular saver

noh

Although it is irrelevant to this thread the simple calculation still works whatever the actual date of the payment is. The assumption the simple calculation makes is that the first payment is made on day one and the subsequent payments made at monthly intervals thereafter.
The payment has to be at the start of each monthly period but that period does not have to start on the first of a month.

Nigel

RayWolfe

Not correct!
All the MSs run in calendar months.
Pay the first installment on 1st of first month; pay the remainder on 25th of 11 months; interest calculated daily; pay out on 1st of 13th month.
Work it out.

noh

What I have written above is correct.
That is for the simple calculation quoted to be correct it doesnt matter what day of the month the deposit is made as long as the first payment is on day one and the subsequent payments are at regular monthly intervals thereafter. All payments are made on the same day each month but that doesn't have to be the first.
If you opened the account on the 25th of month one and payed a regular amount on the 25th of each month you would be paid out on the 25th of month thirteen.
The amount paid out would be the same as if you had opened on the 1st and used the 1st of the month as your regular payment date payout on 1st of month thirteen.
http://www.hsbc.co.uk/1/PA_1_5_S5/content/uk/pdfs/en/reg_sav_terms.pdf;jsessionid=0000rY2iwYENLVsrmaQioPU7q8d:11j7a8e7o

Nigel

Afahmaep

I am currently almost half way through my 3rd year of this 8% Regular Saver.
My net return in Year 1 was £109.21
My net return in Year 2 was £111.92

New_to_Budgeting

It seems that it can be generally difficult to know how much you are gping to get but 8% interest sounds so much higher than other accounts.

For info, I paid £25 the first month and £250 every month thereafter, so havent just paid one lot of £250 expecting loads of interest.

She also said in HSBC that £25 of it was a 'bonus' for not withdrawing the money within the year.

noh

New_to_Budgeting wrote: »

It seems that it can be generally difficult to know how much you are gping to get but 8% interest sounds so much higher than other accounts.

For info, I paid £25 the first month and £250 every month thereafter, so havent just paid one lot of £250 expecting loads of interest.

She also said in HSBC that £25 of it was a 'bonus' for not withdrawing the money within the year.

I calculate that you should receive approximately £107 interest before tax if you paid £25 on day one and £250 at regular monthly intervals thereafter.

Nigel

RayWolfe

noa
You are correct!
... but only for the HSBC account.

"2.2 The first standing order payment must be at least one calendar month after account opening."
All the MSs that I have or have had are based on calendar month, pay out on the 1st of the expiry month and allow first payment on, say, 20th of month one and the second on, say, 1st of month two.

However we are not talking about a great deal of money whatever way it cuts,

noh

RayWolfe wrote: »

noa
You are correct!
... but only for the HSBC account.

"2.2 The first standing order payment must be at least one calendar month after account opening."
All the MSs that I have or have had are based on calendar month, pay out on the 1st of the expiry month and allow first payment on, say, 20th of month one and the second on, say, 1st of month two.

However we are not talking about a great deal of money whatever way it cuts,

All the fixed term regular savers I have A+L, Halifax, and Lloyds pay out on the anniversary of the first payment the Halifax and the Lloyds one do allow the second payment to be moved so maximising interest but as you say it's not alot. Although Im sure they exist I have not seen one that terminates only on the first of the month.

Nigel

RayWolfe

Abbey, for example, does but the real point is that they mostly allow payments each month on a date of your choosing. If you put your money in early in each month, it's there for more days, more days mean more interest AND points mean prizes!

IamNotOneOfTHEM

Afahmaep wrote: »

I am currently almost half way through my 3rd year of this 8% Regular Saver.
My net return in Year 1 was £109.21
My net return in Year 2 was £111.92

"Competitive interest rate of 8% gross/AER fixed on deposits of £25 – £250 saved each calendar month for 12 months"

Its a 12 month account, isnt it? Are you still getting 8% after Year 1?