The Top Easy Access Savings Discussion Area

jak22

It's normal on any saving account that if you choose monthly interest you'll be earning a figure around  .01% or .02% lower than the headline AER rate. If you just leave that interest in the account it will compound back to the same as the higher figure that you get with annual interest but not if you have it paid out monthly to your current account for example. Gross is just used as the common name for monthly - as all interest is no longer paid net of tax.

RG2015

WBCPB said:

MDMD said:1.84% must be the gross, 1.84% gross monthly is 1.86% AER

Can you please show me the workings on Gross & AER?

It would be complicated. I have done it on Excel but that is not easy to share. However you can Google it and I have a link below to one result.

https://www.shawbrook.co.uk/direct/savings/aer-interest-explained/

eskbanker

WBCPB said:

MDMD said:1.84% must be the gross, 1.84% gross monthly is 1.86% AER

Can you please show me the workings on Gross & AER?

(1+(0.0184/12))^12 = 1.0186

Mr._H_2

I don't think I've seen anyone mention this yet, so I think it might be worth pointing out:

For those who are earning more than £1k/year in interest, it might be worth considering the Virgin Flexi ISA issue 2, as the interest rate is equivalent to 1.75/0.8 = 2.19% for standard-rate tax payers, and 1.75/0.6 = 2.92% for higher-rate tax payers, and cash ISAs can now be operated much like an instant-access savings account.

Whilst there is the £20k per year contribution limit, with fully-flexible ISAs you can replace any money you take out, as long as you do so within the same tax year. 

ranciduk

My shawbrook easy access is still showing as 1.84% monthly 

If this is a variable rate, why haven’t they reduced it to the new lower rate?

AndyTh_2

ranciduk said:

My shawbrook easy access is still showing as 1.84% monthly 

If this is a variable rate, why haven’t they reduced it to the new lower rate?

presumably:
* existing rate for existing customers - they don't want to lose existing customers
* lower rate for newer customers - they don't want as many newer customers

ranciduk

So... as an existing customer, my easy access account is sort of a ‘fixed rate’ account?!

not complaining 

RG2015

RG2015 said:

WBCPB said:

MDMD said:1.84% must be the gross, 1.84% gross monthly is 1.86% AER

Can you please show me the workings on Gross & AER?

It would be complicated. I have done it on Excel but that is not easy to share. However you can Google it and I have a link below to one result.

https://www.shawbrook.co.uk/direct/savings/aer-interest-explained/

eskbanker said:

WBCPB said:

MDMD said:1.84% must be the gross, 1.84% gross monthly is 1.86% AER

Can you please show me the workings on Gross & AER?

(1+(0.0184/12))^12 = 1.0186

I take it back. It's not at all complicated.

How did I not know this!  

PS. I can even put the formula into Excel as it is.

ProDave

So people, what is the best saving rate available please?

Best I have found is Santander ISA up to 2.8% but only on a fixes 2 year.  If you want instant access the best I have found is 1.5% also from Santander.

That seems pathetically low to me, I would have expected higher by now.  What have others found please?

EDIT just found the Shawbrook instant savings account at 1.81% is that the best on offer?

RG2015

ProDave said:

So people, what is the best saving rate available please?

Best I have found is Santander ISA up to 2.8% but only on a fixes 2 year.  If you want instant access the best I have found is 1.5% also from Santander.

That seems pathetically low to me, I would have expected higher by now.  What have others found please?

Have you read any of the recent previous posts?

Not to mention the excellent top 10 post that is regularly updated. I think that is currently on page 700.