The Top Easy Access Savings Discussion Area

10_66

Can someone help me see where I’ve gone wrong when trying to follow these instructions from Raisin’s website, please?  It relates to trying to calculate the AER from a Gross figure;

https://www.raisin.co.uk/banking/aer/#:~:text=To%20calculate%20AER%2C%20divide%20the,be%20left%20with%20the%20AER.

 “You can use the following five steps to work it out yourself:

• Start by finding out the gross interest rate
• Divide the gross interest rate by how many times interest will be paid in a year
• Add one
• Increase the result by how many times interest will be paid in a year
• Subtract one”

If I follow it literally (for an account that pays monthly interest over a 12 month period), the following is what I get, so I’m clearly going wrong somewhere!  I am aware that there is a calculator available to do this, but I'd just like to be able to understand the above instructions.

3.56 ÷12 = 0.2966666 +1 = 1.2966666 x 12 = 15.559999 – 1 = 14.559999

ForumUser7

@soulsaver Kent Reliance EA Issue 57

Interest paid	Opening balance	AER	Gross rate
Annual	£1 - £999	0.10%	0.10%
	£1,000+	3.45%	3.45%
Monthly	£1 - £999	0.10%	0.10%
	£1,000+	3.45%	3.40%

AmityNeon

intalex said:

AmityNeon said:

They also paid interest early this morning (unlike last month).

And for some reason they paid interest up to and including 29th April, anyone know if this is the norm with Chip - i.e. pay for last day of a month to second last of the following month (both inclusive), e.g. 31st March - 29th April or 30th April - 30th May??

It’s normal for Chip.

10_66 said:

3.56 ÷12 = 0.2966666 +1 = 1.2966666 x 12 = 15.559999 – 1 = 14.559999

Those instructions aren’t clear.

3.56% = 3.56 / 100 = 0.0356
((0.0356 / 12) + 1)^12 = 1.036186656
1.0362 - 1 = 3.62%

x^12 = multiplying x by itself 12 times (monthly compounding)

OceanSound

AmityNeon said:

dgpur said:

Absolutely nothing of interest for ages. I have my money split between Tandem and Chip, and this is the longest I’ve gone without switching in ages. I hope the coming rate rise will kick some providers in the proverbial !!!!!!.

Chip’s tendency to immediately pounce back to the top spot at the slightest whiff of being knocked off its perch will likely keep rate tarting an easy affair. They also paid interest early this morning (unlike last month).

Chip still at top spot 3.71%.

Curious, has it ever been knocked off it's perch? If so, when and by whom?

I opened a shawbrook latest issue (month interest paying) yesterday. had Issue 15 with 1p in it for some reason - I hadn't closed it. So, had to close that then open the latest issue as only one easy access account is allowed.

Now I discover that the Chip account (which I already have) pays 3.71% for monthly interest payment, whereas the shawbrook is only 3.59% monthly Gross/variable. Only the Shawbrook yearly interest paying is 3.65% Gross (monthly/variable). 3.65% AER.

Luckily I hadnt deposited any money in shawbrook as yet. May just deposit about £500, just for the sake of spreading around my savings. 

_@_Everyone: BTW, if you already have an old shawbrook issue and you want to open a new one, no need to close the old one, you can message support via secure messaging and request conversion.

With closing the old, it takes a few hours to update the system, so when you go to open the EA (new issue) it may not show up as available (due to the one account limitation). I checked about the conversion method yesterday with support and they confirmed.

edit: Shawbrook EA issue 35 minimum deposit is £1000. I will withdraw funds in zopa account and deposit in Shawbrook as it beats zopa. Have Chip account with the largest deposit.

Strombidae

Ford Money Flexible Saver increased to 3.45% from today.

ranciduk

TSB have upped their limited access account to 3%

*Stacey*

ForumUser7 said:

@soulsaver Kent Reliance EA Issue 57

Interest paid	Opening balance	AER	Gross rate
Annual	£1 - £999	0.10%	0.10%
	£1,000+	3.45%	3.45%
Monthly	£1 - £999	0.10%	0.10%
	£1,000+	3.45%	3.40%

Hello,

Do you know if existing customers will automatically be moved to the new higher interest rates, or do we need to close and reopen the account? I’ve recently opened a new account with Kent Reliance, still
learning how it all works 

mebu60

*Stacey* said:

ForumUser7 said:

@soulsaver Kent Reliance EA Issue 57

Interest paid	Opening balance	AER	Gross rate
Annual	£1 - £999	0.10%	0.10%
	£1,000+	3.45%	3.45%
Monthly	£1 - £999	0.10%	0.10%
	£1,000+	3.45%	3.40%

Hello,

Do you know if existing customers will automatically be moved to the new higher interest rates, or do we need to close and reopen the account? I’ve recently opened a new account with Kent Reliance, still
learning how it all works 

You will need to open a new account. Login and apply, it's quite straightforward. I have just done it! 

I then did an internal transfer to the Issue 57 leaving £1 in the Issue 56 (minimum balance) and sent an internal secure message requesting closure of the D56 with the £1 plus interest to date to be transferred to the D57.

You will need to do before 3:30pm today if you wish to transfer your funds today otherwise set up for / wait until Tuesday. 

You might want to check out Shawbrook Issue 33 3.65% if not already done so. 

*Stacey*

mebu60 said:

*Stacey* said:

ForumUser7 said:

@soulsaver Kent Reliance EA Issue 57

Interest paid	Opening balance	AER	Gross rate
Annual	£1 - £999	0.10%	0.10%
	£1,000+	3.45%	3.45%
Monthly	£1 - £999	0.10%	0.10%
	£1,000+	3.45%	3.40%

Hello,

Do you know if existing customers will automatically be moved to the new higher interest rates, or do we need to close and reopen the account? I’ve recently opened a new account with Kent Reliance, still
learning how it all works 

You will need to open a new account. Login and apply, it's quite straightforward. I have just done it! 

I then did an internal transfer to the Issue 57 leaving £1 in the Issue 56 (minimum balance) and sent an internal secure message requesting closure of the D56 with the £1 plus interest to date to be transferred to the D57.

You will need to do before 3:30pm today if you wish to transfer your funds today otherwise set up for / wait until Tuesday. 

You might want to check out Shawbrook Issue 33 3.65% if not already done so. 

Thank you so much for the quick reply, I will
do this now :-) 

OceanSound

mebu60 said:

*Stacey* said:

ForumUser7 said:

@soulsaver Kent Reliance EA Issue 57

Interest paid	Opening balance	AER	Gross rate
Annual	£1 - £999	0.10%	0.10%
	£1,000+	3.45%	3.45%
Monthly	£1 - £999	0.10%	0.10%
	£1,000+	3.45%	3.40%

Hello,

Do you know if existing customers will automatically be moved to the new higher interest rates, or do we need to close and reopen the account? I’ve recently opened a new account with Kent Reliance, still
learning how it all works 

You will need to open a new account. Login and apply, it's quite straightforward. I have just done it! 

I then did an internal transfer to the Issue 57 leaving £1 in the Issue 56 (minimum balance) and sent an internal secure message requesting closure of the D56 with the £1 plus interest to date to be transferred to the D57.

You will need to do before 3:30pm today if you wish to transfer your funds today otherwise set up for / wait until Tuesday. 

You might want to check out Shawbrook Issue 33 3.65% if not already done so. 

I opened a issue 35 yesterday. That had 3.65% Gross/AER too. 

Do you mean issue 35?