Nationwide to axe 5% regular savings account on Friday

KTF

I realise it is 5% of £250 then 5% of £500 and so on which is why over the full term it averages out at less than the headline rate.

bowlhead99

KTF wrote: »

I realise it is 5% of £250 then 5% of £500 and so on which is why over the full term it averages out at less than the headline rate.

No, it pays the headline rate. It pays 5% AER on every penny that's in the account.

As the full £3000 is not in there until the last month, you have a lot of pennies that are not in the account in early months. Presumably they will be in other accounts, earning you interest there instead. Or perhaps that money isn't even in your other accounts yet because you haven't even earned it from your job, so your boss has the money .

It would be unreasonable for you to expect Nationwide to be paying you 5% interest in money that was in your other bank account or in your boss's pocket. The account is still paying you a full 5% a year on every penny it receives. What you do with the pennies that aren't in the account is up to you.

eskbanker

KTF wrote: »

I realise it is 5% of £250 then 5% of £500 and so on which is why over the full term it averages out at less than the headline rate.

It's misleading and unhelpful to characterise it as half the rate on the full closing balance, but it's more meaningful to express it as the full rate on half the closing balance (as this is what the approximate average is across the year).

So, if you're ignoring regular savers at 3% AER because you're believing that you get the same interest from a Marcus account at 1.5% AER then you're only fooling yourself!

veryintrigued

KTF wrote: »

I realise it is 5% of £250 then 5% of £500 and so on which is why over the full term it averages out at less than the headline rate.

Please stop!

d63

is the last chance to apply thursday or friday? this article in thisimoney says midnight on thursday:
https://www.thisismoney.co.uk/money/saving/article-6878813/End-line-5-deal-Nationwide-withdraw-popular-monthly-savings-account.html
but the mse article says midnight on friday:
https://www.moneysavingexpert.com/news/2019/04/nationwide-to-pull-5--regular-saver-this-friday/?_ga=2.8906293.1226963466.1554060685-171130773.1526364707

(i cannot find the official nationwide announcement)

redux

KTF wrote: »

I realise it is 5% of £250 then 5% of £500 and so on which is why over the full term it averages out at less than the headline rate.

£975, lovely.

Or try dividing by 12.

polymaff

Deleted_User wrote: »

Yes, happy to use any legal loopholes. Just don't understand why NW leave it open.

Perhaps they are going to drop the rate paid next Monday.


After all it IS a variable-rate account.

hostertlady

mhoc wrote: »

I've closed both of ours today - it can all be done online - look for other services on the left hand margin. The accounts get closed straight away and the balance goes to your current account. I should think you could do this over the phone if its easier - might be worth a try

0800 302011

OHs was near maturity so he had £80 in interest and mine which was a few months had £10 interest.

Wednesday we open new accounts so at least we have 5% interest until April 2020

thanks for this... just done mine now... now i'm hoping to open another one before friday

hostertlady

BBH123 wrote: »

Opened mine. Thanks for the heads up. Shame you can only save £250 a month though

I know! it used to be £500

bioboybill

Opened a new regular saver this morning. Thanks to the original poster for the heads up.