The Top Easy Access Savings Discussion Area

typistretired

Yes I did apply via their new customer online application but when they emailed me with my online reference number and said it would take up to 3 days I contacted them on their free phone 0800 012 1532 as I didn't want to wait up to 3 days and they opened immediately. Probably have two esaver 5's now!

bobblebob

Got an interest statement from my Instant Saver yesterday (April to April), so not sure why its come end of June. Interest it says i got is wrong anyway, got double what they said, so not sure whats going on

okay79

Could someone explain the difference between having interest paid yearly or monthly on the eSaver issue 5?

From the advert, it looks like you get 3.2% at the end of a year with yearly, or 3.15% monthly with the monthly, i.e. you receive a bit less but you get it more often.

Just called Santander who insisted you got the same amount whichever one you went for, and that it was down to personal preference. Why would anyone choose yearly if that was the case???

I-LOV-MONEY

If you are not in need of the money, you may as well wait till the end of the year and get it as a lump sum.

Without working it out, I suspect if you had £100 invested and received 3.15% each month (compounded) it would be the same if you had the 3.20% added annually.

10_66

okay79 wrote: »

Could someone explain the difference between having interest paid yearly or monthly on the eSaver issue 5?

From the advert, it looks like you get 3.2% at the end of a year with yearly, or 3.15% monthly with the monthly, i.e. you receive a bit less but you get it more often.

Just called Santander who insisted you got the same amount whichever one you went for, and that it was down to personal preference. Why would anyone choose yearly if that was the case???

If you select the monthly option the interest rate is 3.15% gross but the AER would be 3.20% gross. The AER is what the interest would be if it's left in the account to carry on earning interest over a 12 month period (ie compounding).

okay79

Thank you both 10_66 and I-LOV-MONEY.

So the two rates are the same. I remain confused why they offer two different options - surely better to have the money in your pocket as soon as possible with the monthly account, as you can change if a better deal comes along.

psychic_teabag

okay79 wrote: »

Could someone explain the difference between having interest paid yearly or monthly on the eSaver issue 5?

From the advert, it looks like you get 3.2% at the end of a year with yearly, or 3.15% monthly with the monthly, i.e. you receive a bit less but you get it more often.

Just called Santander who insisted you got the same amount whichever one you went for, and that it was down to personal preference. Why would anyone choose yearly if that was the case???

There are some very small advantages to yearly. Monthly interest relies on compounding to get the AER up to the same. (As you say, you get slightly less, but earlier, and so you can start earning interest on the interest.)

if you receive interest net of tax, annual is slightly better, since the net interest cannot compound quite enough to make up the gross rate

the money has to be in for exactly a year for the compounding to make up the difference : any less than that, and annual is better.

An advantage of monthly is that if the rate drops, you are more likely to notice.

If your tax rate might change in the next year, there may be an advantage to one or the other. (Annual is better if your tax rate may drop ; monthly is better if your tax rate might increase.)

If you close the account, you'll receive all interest due immediately, irrespective of when interest was due to be paid.

jemb100

i would like to put away a large amount of savings every month into a high interest account and also add £800monthly to that for roughly around 5 years without being able to touch it,but if needs must have to take some out ,then i can,what do u think to scottish widows investments?i just dont know which high interest account to go with?

Steve_xx

jemb100 wrote: »

i would like to put away a large amount of savings every month into a high interest account and also add £800monthly to that for roughly around 5 years without being able to touch it,but if needs must have to take some out ,then i can,what do u think to scottish widows investments?i just dont know which high interest account to go with?

Have you used your ISA allowance up for this year? If not, then you ought to use that first.

ejv

psychic_teabag wrote: »

if you receive interest net of tax, annual is slightly better..............................


An advantage of monthly is that...............................

If you close the account, you'll receive all interest due immediately, irrespective of when interest was due to be paid.

I have opened WestBrom 3.17% in Sep 2011.Today Coventry has come up with 3.25%.I have chosen annual interest with WestBrom.It allows 4 withdrawals a year.If I close it and transfer funds to Coventry,how would they be calculating my interest?
Thanx in advance