Regular Savings Account - First of the Month?

pafpcg

eskbanker wrote: »

I'd say rather more than just pence - the variation in interest from optimally-scheduled to worst-timed is effectively a year's interest on an extra month's payment, so roughly 5% of £250 = £12.50, or perhaps a shade below this, closer to £12.

OK, OK! But that's still only 1,250 pence!

I did this calculation a couple of years ago with a spreadsheet to optimise the opening day-of-month, but I deleted the spreadsheet and all I could remember is that it wasn't enough to make me change my own renewal date and that the effort to create the spreadsheet was too great to do it all again!

Don't forget that there's lost interest while waiting for the initial funding and uninvested money is earning interest elsewhere (@ 1.5% for me).

Ah, the lengths some MoneySavers will go to to extract the maximum return......

eskbanker

pafpcg wrote: »

Don't forget that there's lost interest while waiting for the initial funding and uninvested money is earning interest elsewhere (@ 1.5% for me).

Yes, that's a fair point, if that same 'extra' £250 would be earning 1.5% elsewhere then the net variance between funding schedules is reduced accordingly, to more like 850 pence

pafpcg wrote: »

Ah, the lengths some MoneySavers will go to to extract the maximum return......

I should perhaps clarify that I was purely looking at this out of mathematical curiosity (and pedantry!) rather than actually advocating this approach as such....

colsten

etienneg wrote: »

So, as has been said in previous posts, you achieve this by opening the account (and making the first deposit) late in a calendar month and then making subsequent deposits on the first of subsequent months.

More pedantry: Many, but not all RS accounts operate on a calendar month basis. For those that don't, it doesn't usually matter when you open them and make the first deposit (same day, preferably, for all types of RS) as their deposit periods will start on the opening date, and will repeat on each monthiversary.

aj23_2

I think we are talking about a matter of pennies here.

You can choose your own date for Nationwide's for example but First Direct will take on the same day each month, which can't be changed.

eskbanker

aj23 wrote: »

I think we are talking about a matter of pennies here.

Technically you could measure the GDP of the USA in pennies - my earlier point was that when it's hundreds or even thousands of pennies involved then it ceases to be the most indicative unit of measurement....

KieranMac

Thank you pafpcg & etienneg for the answers, as well as everybody else!

Think this has been resolved: open late in the month, transfer in at the beginning of the month!

EDIT:

Not opening the end of the month...opening ASAP!

kuratowski

KieranMac wrote: »

Thank you pafpcg & etienneg for the answers, as well as everybody else!

Think this has been resolved: open late in the month, transfer in at the beginning of the month!

Based on today's news, this advice has now been changed to: open by this Friday or miss out!

JoP1

I pay £100/month into three Halifax Kid's Monthly Savings accounts (5% int) for my 3 grandchildren & then transfer their savings annually into their individual stock market trust funds with St. James's Place.
My eldest grandchild is 17 this month and Halifax don't allow children over 17 to continue with a Monthly Saver. I wish to continue saving for him, and the other 2 when they reach 17, until they're c.25 years old (they're unaware the trust funds exist).
Suggestions would be welcome for the best way to do this.

webjaved

Voyager2002 wrote: »

You only earn interest on money that is in the account, so if you pay in later in the month you will earn less than if you pay in on the first.

Best set up an standing order so it automatically drops in £250 on the start of every month then. Thanks. :money:

aj23_2

eskbanker wrote: »

Technically you could measure the GDP of the USA in pennies - my earlier point was that when it's hundreds or even thousands of pennies involved then it ceases to be the most indicative unit of measurement....

I wasn't replying to you, it was a general comment. I don't really see the point of your reply to me in this instance.