Regular Savings/Drip Feed Calculator

Growingold

I may be missing something her. I've just used these calculators and results below are shown
The Regular Savings Calculator

Back
I want to drip feed the money

This calculator will tell you how much you get using the drip-feed route, and compare it with keeping the money in your normal savings account.
How far ahead do you want to look?[
1
Years
Months
How much tax do you pay?
No rate
Basic rate
Higher rate
Additional
Normal Savings Account
How much do you have saved in there?
£
3000
What's the interest rate? (before tax)
1.5
%
Regular Saver
How much will you save each month?
£
250
What's the interest rate? (before tax)
2
%
Calculate
Your Results
Normal Savings Account
After drip-feeding the cash for 12 months...

Total interest earned: £53
£21 from the normal savings & £32 in the regular saver.

Regular Saver
If you'd kept the money only in the normal savings account you'd have earned £21 in interest.

So dripfeeding £250 a month from an account with £3000 paying 1,5% interest into a Regular Saver at 2%.
Total interest £53.
However it says if I kept the money in the normal savings account instead of dripfeeding I'd have only earnt £21 in interest. 1.5% of £3000 is £45 not £21

Your thoughts please.

msallen

No it says you'd earn £21 in the normal account after drip feeding from it, not if you'd just left it all in there.
(Note I haven't run the numbers, I'm just reading what you've quoted)

colsten

Growingold wrote: »

However it says if I kept the money in the normal savings account instead of dripfeeding I'd have only earnt £21 in interest.

For dripfeeding £3,000 from a 1.5% account into a 2% account in £250 instalments, the calculator actually says is "If you'd kept the money only in the normal savings account you'd have earned £45 in interest."

Growingold

It clearly states

Regular Saver
If you'd kept the money only in the normal savings account you'd have earned £21 in interest.

colsten

No idea what you are doing that you get that result. I get the correct one.

msallen

Growingold wrote: »

It clearly states

Regular Saver
If you'd kept the money only in the normal savings account you'd have earned £21 in interest.

So why did you write :

Growingold wrote:

Total interest earned: £53
£21 from the normal savings & £32 in the regular saver.

IanSt

I'm using Chrome and the calculator seems to have problems when you put the tax as anything other than 'No rate'.

E.g. put 'Basic rate' and it will say If you'd kept the money only in the normal savings account you'd have earned £21 in interest., however put 'No rate' and it will give the correct If you'd kept the money only in the normal savings account you'd have earned £45 in interest.

I don't have access here to any other browser, but I'd guess that it's a general issue with the calculator on all browsers.

colsten

well spotted, IanSt. The calculations are majorly up the creek if you use anything but the 'no rate' tax. Not a massive issue, as most people would not pay tax on their income from interest, but a bit embarrassing for MSE.

Growingold

I see now where you get your figure of £45

If you click under the heading How much tax do you pay? No Rate it shows £45. 20% Rate £21

yet 20% tax on £45 interest is only £9 making net interest of £36 still not £21