A&L 12% reg saver interest

oldfella

into my last month and have just received a letter confirming I can expect around £130 interest net. This looks like its only 10%. Anybody else seen this ?

Mike

Aegis

Well, if it's net then that's dropping off 20% because of income tax. 80% of 12% is 9.6%, so that would be about right.

oldfella

I make it more like £156 net at 12%

Kazza242

oldfella wrote: »

into my last month and have just received a letter confirming I can expect around £130 interest net. This looks like its only 10%. Anybody else seen this ?

Mike

Don't forget that A&L make two regular saver interest payments. One of them is around month 9/10 and then the other a year after opening the account. Have you already received the first interest payment? Perhaps the projection you've received doesn't include the interest already paid.

YorkshireBoy

Assuming you've been paying £250 per month, then your interest does seem to suggest a 10% rate has been paid...

£3,000 x 10% / 12 x 6.5 x 0.8 = £130

£3,000 x 12% / 12 x 6.5 x 0.8 = £156


When my regular saver was running I received my interest in two 'blocks'. IIRC, a large payment was made 1-2 months before the anniversary (perhaps coinciding with the anniversary of current account opening?), with another smaller amount paid on the anniversary itself.

Perhaps you should ring A&L? (08000 688638)

s71hj

See http://www.whatsthecost.com/savings.aspx - suggests 136.31 net.

oldfella

that calculator is a bit simplistic - it assumes you pay 250 at the end of the first month rather than the beginning - it should be more like £156

s71hj

Are there other calculators about that are less simplistic. If so, does anybody have any links to these, as I've always relied on "what's the cost"!

Kazza242

s71hj wrote: »

Are there other calculators about that are less simplistic. If so, does anybody have any links to these, as I've always relied on "what's the cost"!

I tend to use the Smile Bank calculators. They are pretty accurate.

slipthru

I have this regular saver to and recieved the same letter, i also thought the interest sounded a little low.

chesky369

I've been contributing since 22 November. Earlier this month A+L credited my account with £115.49 net (144.93 gross). My last payment will be next week but I've received no letter. I think it's a bit odd that they make two interest payments.