Question about the savings limit while on benefits and losing £1 for every £250 over £6000

bspm1

evenasus wrote: »

You do realise that the 5% regular savers AER is actually 2.68%.

Regular eSaver
Receive 3.00% AER/gross (fixed) for 12 months or, if you’re a 1|2|3 World or Santander Select customer receive a rate of 5.00% AER/gross (fixed) for 12 months.

Thought it was 5% personally.

evenasus

evenasus wrote: »

You do realise that the 5% regular savers AER is actually 2.688%.

Sunny_Intervals wrote: »

Isn't that the Regular eSaver without the 123 bonus?

£200 per month for 12 months @ 5% = £2,464.52.
£2400 put in all at once for whole year @ 5% = £2,520.00

bspm1

evenasus wrote: »

£200 per month for 12 months @ 5% = £2,464.52.
£2400 put in all at once for whole year @ 5% = £2,520.00

Well obviously if you could put a lump sum in of £2400 for a year with an interest rate of 5% you would get more interest.
To my knowledge the only one allowing you to do that is Nationwide and we have used those, in this day and age with abysmal interest rates we use our spare cash which is not tied up elsewhere in Regular savers.
Not sure I see your point and to be honest I think we have talked about interest rates enough on this posters thread.
So I will bid you goodnight and thank you for your maths input.
:money:

[Deleted User]

Does anybody agree that its more than about time that the £6k limit was increased, it used to be £3k but hasn't been altered for maybe 15 years now?
I can live with the higher 16k limit but its about time the 6k was increased to 10k.

Ames

Sunny_Intervals wrote: »

I can see both sides of this one.


Leaving it the same for so long doesn't take into account that everything keeps getting dearer. It makes it difficult for disabled people who might want to save up to make changes to their home, for example.



On the other hand, £6000 is still a decent amount to cover (most?) emergencies, I think.

I think that having the same limits but changing the tariff would be best. Then having an exception for savings towards a specific, necessary, big ticket item - so someone saving their PIP for a wet room, for instance, wouldn't have those savings counted as capital as long as it was in a separate account with limited access (say, a 40 day account), with a date set for when the work has to be completed.

A_Nice_Englishman

FWIW, interest rates were around 10% in 1988 when a previous poster said the tariff started. £250 would have earned about £25 pa or 50p a week in interest. That's half the tariff of £1 a week.

sammyjammy

Ames wrote: »

I think that having the same limits but changing the tariff would be best. Then having an exception for savings towards a specific, necessary, big ticket item - so someone saving their PIP for a wet room, for instance, wouldn't have those savings counted as capital as long as it was in a separate account with limited access (say, a 40 day account), with a date set for when the work has to be completed.

Never going to happen, the costs of implementing and managing such a scheme would be huge.

tazwhoever

As the government has introduced 'help to save' accounts, I'm sure these will impact benefits?

[Deleted User]

tazwhoever wrote: »

As the government has introduced 'help to save' accounts, I'm sure these will impact benefits?

Isn't that only for people on tax credits? and its an "old"scheme that has taken 2 years to be fully rolled out (Oct 2018)

calcotti

venison wrote: »

Isn't that only for people on tax credits? and its an "old"scheme that has taken 2 years to be fully rolled out (Oct 2018)

For people entitled to Working Tax Credits or Universal Credit with monthly income over £542.88 https://www.gov.uk/get-help-savings-low-income/eligibility