First Direct Regular Saver

SallyG

FD callcentre say for the Regular Saver it's OK to pay minimum monthly amount of £25 for 11 months and then phone them to change Standing Order at least two working days before last payment due - to top up to max of £3600.
Has anyone done it /can anyone confirm it's do-able - that T and Cs don't prevent it?
[Interest paid on the amount in the Regsaver in the final month - not cumulative/compounded?]

mollycat

SallyG wrote: »

FD callcentre say for the Regular Saver it's OK to pay minimum monthly amount of £25 for 11 months and then phone them to change Standing Order at least two working days before last payment due - to top up to max of £3600.
Has anyone done it /can anyone confirm it's do-able - that T and Cs don't prevent it?
[Interest paid on the amount in the Regsaver in the final month - not cumulative/compounded?]

Why would you want to do this?

coyrls

SallyG wrote: »

[Interest paid on the amount in the Regsaver in the final month - not cumulative/compounded?]

No, why do you think that?

ColdIron

A brief look at T&Cs seem to support it but what would be the point? The interest is calculated daily on the balance on deposit. You'd only earn a few quid instead of nearly a hundred

SallyG

Thanks for assistance - I thought there was no compounding - just 6% on whatever is in the account in month 12 - more water with it...................

coyrls

SallyG wrote: »

So as to get the benefit of FDRS 6% interest without tying up £300 a month earning no interest until final month?

You don't seem to understand how it works. As ColdIron states:

The interest is calculated daily on the balance on deposit.

ColdIron

SallyG wrote: »

Thanks for assistance - I thought there was no compounding - just 6% on whatever is in the account in month 12 - more water with it...................

It's a common mistake but if you ever do find an account that pays interest on money held elsewhere, or that may not even exist, be sure to let us know

PS The rate of interest has been reduced to 5%

JohnRo

It's just a shame the reverse isn't possible.

Archi_Bald

SallyG wrote: »

Thanks for assistance - I thought there was no compounding - just 6% on whatever is in the account in month 12 - more water with it...................

It's not so much about compounding but about only getting interest on what is in your account at the end of each day.

schiff

ColdIron wrote: »

PS The rate of interest has been reduced to 5%

More detail please

ColdIron

schiff wrote: »

More detail please

Get into a good savings habit and we'll reward you with the best rate we have. Lock away between £25 to £300 each month, for a fixed 12 month term, and we'll give you a fixed rate of 5.00% AER (gross 5.00% pa).

http://www2.firstdirect.com/1/2/savings-and-investments/savings/regular-saver-account