Virgin Money Regular Saver interest

veryintrigued

Just bumping this up for later this week 

Sea_Shell

I'd forgotten all about the mid-term interest, so thanks.

I've now made room on my spreadsheet in anticipation!


So, for the brainboxes....how much interest should be expected on the VRS15, if fully funded on the first of the month after opening on 7th April 2020 with £250, so with a balance now of £3000???

schiff

Returnable for 2020/21 tax returns too.

where_are_we

Purely as a matter of interest! (because the amounts are so small) are these mid-term interest payments compounded? This unusual behaviour of two interest payments makes my long list of savings interest payments even longer and increases the risk of HMRC`s total being incorrect.

RG2015

Sea_Shell said:

I'd forgotten all about the mid-term interest, so thanks.

I've now made room on my spreadsheet in anticipation!


So, for the brainboxes....how much interest should be expected on the VRS15, if fully funded on the first of the month after opening on 7th April 2020 with £250, so with a balance now of £3000???

£28.90 on 11/3/21 and a further £6.83 on maturity on 20/4/21.

GreenBitterfly

veryintrigued said:

Just bumping this up for later this week 

Since last week, I've been counting down the days till this Thursday, so I can complete the March entry on my spreadsheet. Exciting times I know!

someone

where_are_we said:

Purely as a matter of interest! (because the amounts are so small) are these mid-term interest payments compounded? This unusual behaviour of two interest payments makes my long list of savings interest payments even longer and increases the risk of HMRC`s total being incorrect.

Why would it not be compounded? It goes onto the balance just like a payment in.

It's not entirely unusual as many building societies pay annual interest on a the same day for all accounts. Of note, online and branch based products from Virgin have different annual interest payment dates! (branch pays out 31st October)  

In the case of the Virgin Regular Savers the product switch at the maturity also generates the interest. The issues tend to have a duration of over 12 months when launched as they have a fixed maturity date (most people end up saving for "around a year" but those in early get a little longer and those in late get a shorter product). This is likely why the two payments are required, the maturity interest is to their IT system the interim payment and the payments on the 11th the annual payment.

Fingerbobs

Presumably this is only relevant if you opt for annual interest, rather than monthly? Is there any reason to choose annual interest? 

colsten

Fingerbobs said:

Presumably this is only relevant if you opt for annual interest, rather than monthly? Is there any reason to choose annual interest? 

Generally speaking, somebody who is micro-managing their savings interest income, for either tax or income purposes, could be interested in monthly interest payments. The AER is the same on monthly or annual payments.

Fingerbobs

colsten said:

Fingerbobs said:

Presumably this is only relevant if you opt for annual interest, rather than monthly? Is there any reason to choose annual interest? 

Generally speaking, somebody who is micro-managing their savings interest income, for either tax or income purposes, could be interested in monthly interest payments. The AER is the same on monthly or annual payments.

I always choose monthly interest if it's an option on any type of account. I can't see any disadvantages, and I don't see why anyone would prefer annual interest.