Reg. Savers 5%

polymaff

AndyPK wrote: »

using the formula on previous page I get

£78
£40.62


But these seam too high

Figures correct. Remember that, in practice, you'll receive slightly different amounts.

polymaff

AndyPK wrote: »

using TSB as an example.

2% £250/month.

The website says I would earn £28.33

Your formula suggests £32.50

.02 * 250 * 6.5

equals £32.50

Again - approximately. Weekends will drive the figure down, force-feeding will drive the figure up.

polymaff

YorkshireBoy wrote: »

TSB tell you EXACTLY what assumptions they made in order to arrive at that figure, eg opened on 1st March and funded on 25th of each month following.

Interesting that they mention the 25th. Yesterday I opened a Club Lloyds RS and the dialogue contained, IIRC, a warning that an initial payment made beyond the 25th would be registered as occurring on the 1st of the next month.

I wonder if this will be a common approach to avoiding the variable month length issue?

YorkshireBoy

polymaff wrote: »

Interesting that they mention the 25th.

I suspect it's a relic from the LloydsTSB days.

Yesterday I opened a Club Lloyds RS and the dialogue contained, IIRC, a warning that an initial payment made beyond the 25th would be registered as occurring on the 1st of the next month.

I don't remember seeing that when I've opened mine at the end of the month. My current RS was opened and funded on the 28th IIRC. They do say that the SOs have to hit by the 25th, but as far as I know you can fund initially by internal transfer on the last day of the calendar month, provided it's a bank working day of course.

polymaff

YorkshireBoy wrote: »

I don't remember seeing that when I've opened mine at the end of the month. My current RS was opened and funded on the 28th IIRC. They do say that the SOs have to hit by the 25th, but as far as I know you can fund initially by internal transfer on the last calendar month, provided it's a bank working day of course.

I didn't pay much heed, it being the 10th, but what you mention about SOs rings a bell - and it may well be a way of them trying to sort out the end-of-the-month issue. Incidentally, I "force-fed" the just-closed Club Lloyds RS and they accepted the SO being dragged forward to the 1st of the month and the resulting 13th deposit - and paid the extra interest.

Not like those baskets at HSBC

Eco_Miser

ValiantSon wrote: »

It depends what the .xx% is, but if it is 2.25% (as the OP indicates) then yes, 1.4% in an easy access savings account would be better on the total sum than the regular saver would be, e.g. £250 p/m at 2.25% = £36.44, whereas £3000 at 1.4% over 12 months = £42.

But not better than the combined interest of the increasing sum in the regular saver and the decreasing sum in the easy access savings account as £250 is moved over each month.

Nor is 1.4% better than 2.25% on any specified sum. (I didn't mention any amounts, just rates; and you decided to create your own scenario, comparing the rates on different amounts.)

Ledw

I'm no expert with mathematics but HSBC are offering a Regular Savers account with a fixed rate of 5% over 12months when you are a premier account holder. To me this means that at the end of 12months the interest on the maximum amount of £3000 is £150- but HSBC are telling me that the interest received will be £81.25... this is 2.7% not 5%.

Am I working the % out incorrectly? is there something I'm missing?- what has your experience been?

YorkshireBoy

Ledw wrote: »

I'm no expert with mathematics but HSBC are offering a Regular Savers account with a fixed rate of 5% over 12months when you are a premier account holder. To me this means that at the end of 12months the interest on the maximum amount of £3000 is £150- but HSBC are telling me that the interest received will be £81.25... this is 2.7% not 5%.

Am I working the % out incorrectly? is there something I'm missing?- what has your experience been?

See post #18.

polymaff

Ledw wrote: »

I'm no expert with mathematics but HSBC are offering a Regular Savers account with a fixed rate of 5% over 12months when you are a premier account holder. To me this means that at the end of 12months the interest on the maximum amount of £3000 is £150- but HSBC are telling me that the interest received will be £81.25... this is 2.7% not 5%.

Am I working the % out incorrectly? is there something I'm missing?- what has your experience been?

See many of the previous posts in this thread !

.05 * 250 * 6.5 = 81.25

EDIT: Incidentally you can also get this account as an Advance account holder.

Kim_13

Ledw wrote: »

I'm no expert with mathematics but HSBC are offering a Regular Savers account with a fixed rate of 5% over 12months when you are a premier account holder. To me this means that at the end of 12months the interest on the maximum amount of £3000 is £150- but HSBC are telling me that the interest received will be £81.25... this is 2.7% not 5%.

Am I working the % out incorrectly? is there something I'm missing?- what has your experience been?

There's also an explanation of this under the 'Don't believe the bad press' section of the MSE Regular Savings guide, near the bottom of the page: https://www.moneysavingexpert.com/savings/best-regular-savings-accounts.

Simply put you do receive 5% on all the money in the account for the time it is in there - but there is only £250 maximum in there earning interest for the whole 12 months, £500 for 11 months and so on.