Virgin Money Regular Saver interest

where_are_we

Then for example a Virgin RS with a 1% AER would return slightly more interest over a year than a Halifax RS with a 1% AER assuming payment amounts and dates were the same. I know you can also get an increased return with the Virgin RS because their structure allows 14 monthly payments.

colsten

I always use annual, especially with regular savers and fixed term accounts, as it's a lot less work to track the interest payment. I can't see any advantage in getting monthly interest unless you want/need to spend it each month - what am I missing?

colsten

where_are_we said:

Then for example a Virgin RS with a 1% AER would return slightly more interest over a year than a Halifax RS with a 1% AER assuming payment amounts and dates were the same. I know you can also get an increased return with the Virgin RS because their structure allows 14 monthly payments.

1% AER is 1% AER. For the same amount of money, deposited on the same day, both accounts will yield the same total yield. If they offered different yield, they would have different AERs.

Fingerbobs

colsten said:

I always use annual, especially with regular savers and fixed term accounts, as it's a lot less work to track the interest payment. I can't see any advantage in getting monthly interest unless you want/need to spend it each month - what am I missing?

Nothing. Your "unless" covers it. As far as I can see, there are only disadvantages (albeit minor ones) to choosing annual interest, so why not have monthly interest? You get exactly the same amount of money over the year, but with monthly interest you get access to portions of it sooner. Where's the disadvantage?

colsten

As I said, lots more tracking to do on monthly compared to annual. 11 times more, to be precise. Worth it if you need the cash, but otherwise it's not IMO, particularly not in a low-interest environment which we are in.  Each to their own.

Fingerbobs

colsten said:

As I said, lots more tracking to do on monthly compared to annual. 11 times more, to be precise. Worth it if you need the cash, but otherwise it's not IMO.  Each to their own.

I don't follow. What do you mean by "tracking"? What extra work do you have to do because an account is paying monthly interest?

veryintrigued

I suspect Colsten records interest as it comes in.

I do separately too.

Once a year is plenty enough effort for n accounts.

what7

Annual interest are much easier to track. 

Like me, I know my forecast interest for 2021/22 are already over the £1000 allowance, so I am waiting for the new tax year to open 1% RS, so the annual interest will go in 2022/23 tax year. 

I guess if you have handful of account, you might have the time and energy to track monthly, but if you have 2 dozen regular saver then it's another story.

colsten

veryintrigued said:

I suspect Colsten records interest as it comes in.

Precisely that, yes. That way, I know exactly how much interest I have accrued across all my accounts, at any point in time. 

If HMRC for some reason disagree with the totals for the year, it takes me 5 minutes to produce a report for them with all the interest I received. I can also do my tax return without having to wait for tax certificates which arrive, or don't arrive, at different times in different formats and places.

I also like to be on top of all my finances on a continued basis. As I do have dozens of accounts, I try to keep the management effort required for each account to a a minimum. I also spend my 'finance' time much rather on chasing reward payments and switches rather than tiny monthly interest payments. Although I can't avoid it completely as current accounts insist on monthly payment.

schiff

You sound like me colsten