Regular Saver Thread **New and Restarted**

oli356

YorkshireBoy wrote: »

You can switch in later to Nationwide as an existing customer. No need to do it now when you open and fund the account initially. Just grab yourself a donor account elsewhere, set up a couple of DDs, and then find a friend or family member to refer you...several months down the line isn't a problem providing their long-running offer is still on of course.

That kind of confuses me, reading the Nationwide website also

Can I recommend someone who already has a Nationwide current account?

"Yes, you can. They'll need to complete a full current account switch of their non-Nationwide current account to their Nationwide FlexAccount, FlexPlus or FlexDirect account (only these current accounts qualify under the offer). At least two Direct Debits will need to be transferred as part of the switch (standing orders and recurring card payments don't qualify)."

So even though I already have a FlexDirect (been approved, waiting on account details).

I could make a donor account with say Starling (10 second google search suggested it's a good one as easy to setup), setup 2 DD. Then my mum for example (Nationwide customer), could refer me.. then I guess I don't get a new Nationwide account, but the DDs get merged into the one I have already? And then get the £100. So it's like an incentive to get people with them 'full time' rather than new customers?

This is good to know. Thank you

EthicsGradient

oli356 wrote: »

How is the interest calculated on these saving accounts? For example according to MSE
the HSBC account will earn £44.69 interest if you saved the max.

The MSE calculator says £44.50 (saving £250 for 12 months).

HSBC website says £44.69

However I don't understand how this number is created as 2.75% of £3000 is £82.5 so how do we get to 44.69 and why does the calculator on the site differ (albeit only by 19p)

We can show exactly how you get £44.69: you work out the average amount you have in the account, by pairing up the amounts you've got in the first and last months, and so on. So you have
£250 + £3000 = £3250
£500 + £2750 = £3250
etc. - 6 of those pairs in all. So you have an average of £3250 / 2 = £1625 during the year. 2.75% of £1625 is £44.69. Why the site calculator is a little out, I don't know - could be the last day's interest, perhaps.

Special_Saver2

Hi Everybody,


Here is this weekend's update.


- Staffordshire Railway BS Regular Savings (Issue 1) account entry updated to include that it is now only available to locals including which postcodes are permitted


- Furness BS 1 Year Regular Saver (paying 2.5% on up to £500 per month, can only be opened in branch, unlimited withdrawals) added


I will do the next update next weekend.


SS2

---

For those new to this thread, the first few posts are constantly updated and are on the first page

Fingerbobs

EthicsGradient wrote: »

We can show exactly how you get £44.69: you work out the average amount you have in the account, by pairing up the amounts you've got in the first and last months, and so on. So you have
£250 + £3000 = £3250
£500 + £2750 = £3250
etc. - 6 of those pairs in all. So you have an average of £3250 / 2 = £1625 during the year. 2.75% of £1625 is £44.69. Why the site calculator is a little out, I don't know - could be the last day's interest, perhaps.

Doesn't this method assume that all months are the same length? This could be the reason for the small discrepancy?

adindas

oli356 wrote: »

how do we get to 44.69 and why does the calculator on the site differ (albeit only by 19p)

I fail to understand people want to investigate for such a very tiny difference (in pence)

When people are making calculator fro RSA they make a few general assumptions such as you are paying on the same time each month, the same amount credited.
It could also different because the time when you pay to your account afternoon after the certain cutoff time, os the interest will only start the following day.

The opening and maturity date could the same date later on the day or +1 depending on the cutoff time. All of that of course will produce a different result.

But is it worth to invest time to investigate for such a tiny difference in pence??

vernall

adindas wrote: »

I fail to understand people want to investigate for such a very tiny difference (in pence)

When people are making calculator fro RSA they make a few general assumptions such as you are paying on the same time each month, the same amount credited.
It could also different because the time when you pay to your account afternoon after the certain cutoff time, os the interest will only start the following day.

The opening and maturity date could the same date later on the day or +1 depending on the cutoff time. All of that of course will produce a different result.

But is it worth to invest time to investigate for such a tiny difference in pence??

I agree. I just half the % (if the RS is 3%, I just say 1.5% on whole balance) and that's close enough lol

colsten

EthicsGradient wrote: »

Why the site calculator is a little out, I don't know - could be the last day's interest, perhaps.

One of the reasons the site's calculator is "out" (which it isn't), is that it definitely does not use your rough-and-ready-reckoner, but the proper method of calculating interest on a savings account.

We don't, however, know, the exact assumptions the site calculator uses for the dates deposits are made. That's the reason why it may produce a slightly different result to other proper calculators which might make different assumptions.

One of the most likely reasons for penny discrepancies is that one calculator assumes deposits are always made on the 1st of a month. However, if the 1st of a month is not a working day, the deposit will not happen for at least another day, and therefore the month's deposit won't be earning interest from the 1st. The most precise calculators would take weekends at the start of a month into account.

Having said all this, your rough-and-ready-reckoner is a good enough method to use for those who cba with using a proper calculator. The bank or building society will, in the end, pay the correct amount.

Fingerbobs

adindas wrote: »

I fail to understand people want to investigate for such a very tiny difference (in pence)

When people are making calculator fro RSA they make a few general assumptions such as you are paying on the same time each month, the same amount credited.
It could also different because the time when you pay to your account afternoon after the certain cutoff time, os the interest will only start the following day.

The opening and maturity date could the same date later on the day or +1 depending on the cutoff time. All of that of course will produce a different result.

But is it worth to invest time to investigate for such a tiny difference in pence??

It's not that people are bothered about the tiny differences - they simply want to understand the maths and understand why these small differences exist. I can totally understand that.

soulsaver

Fingerbobs wrote: »

It's not that people are bothered about the tiny differences - they simply want to understand the maths and understand why these small differences exist. I can totally understand that.

So can I, but it probably be better in its own thread.

adindas

vernall wrote: »

I agree. I just half the % (if the RS is 3%, I just say 1.5% on whole balance) and that's close enough lol

Exactly.
Regarding the interest, I do not remember the more accurate figure, but it is about 0.6x. So if the RS is paying 3%, it is equivalent to about 1.8% of the whole balance provided that you put the same amount of money on the same date each month.

As the interest is calculated daily all of that is something to do with how long the particular chunk of money is in the saving account.