Regular Saver Thread **New and Restarted**

oli356

eskbanker wrote: »

You might wish to find out from your employer if you can sacrifice some salary to make additional pension contributions, as this can keep you at basic rate tax while also providing long term benefits.

I pay 3% already (company 8%), I think after bonuses I might be on £53k gross a year.

6% pension contribution I think would keep me in basic rate tax. Though I also have private healthcare as a benefit in kind so not sure how that comes into play as I believe my gross is therefore higher still.

I've never really paid paid attention and understood all the tax stuff, I just go with the flow and never had to think about it.

I only have 4 days left for the ability to change my pension contribution so will probably leave it alone for the time being as I don't know what I'm doing I had thought about seeing a IFA to go through all of this with someone.


Back to my original question then. So whilst with the HSBC account you pay in monthly so will not always have £3000 in the account. A Nationwide FlexDirect (5% up to £2500) can have the money paid in as a bulk payment and therefore get interest on the full amount from day 1, so this would be £125 interest for 12 months?

xylophone

private healthcare as a benefit in kind

https://www.litrg.org.uk/tax-guides/employment/employment-benefits-and-expenses/what-are-benefits-kind

A Nationwide FlexDirect (5% up to £2500) can have the money paid in as a bulk payment and therefore get interest on the full amount from day 1, so this would be £125 interest for 12 months?

If you credit the account with £2500 when you open the account and pay in/out £1000 a month then you earn interest as here

https://www.nationwide.co.uk/products/current-accounts/flexdirect/rates-fees-overdrafts

It is paid monthly and as I recollect works out at around £10 or so a month.

YorkshireBoy

oli356 wrote: »

A Nationwide FlexDirect (5% up to £2500) can have the money paid in as a bulk payment and therefore get interest on the full amount from day 1, so this would be £125 interest for 12 months?

Nearly. You will earn at 4.89% (equates to a notional 5% AER), so £2,500 x 0.0489 = £122.25

However, if you switch an account in you could almost double this with a switching incentive to £222.25 over the year.

oli356

YorkshireBoy wrote: »

Nearly. You will earn at 4.89% (equates to a notional 5% AER), so £2,500 x 0.0489 = £122.25

However, if you switch an account in you could almost double this with a switching incentive to £222.25 over the year.

Thanks for clarification. I'm switching to HSBC (from a now unused Natwest account, since I joined Monzo last year). So will get the £175 switching incentive from then

YorkshireBoy

oli356 wrote: »

Thanks for clarification. I'm switching to HSBC (from a now unused Natwest account, since I joined Monzo last year). So will get the £175 switching incentive from then

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.

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??