Regular Savings Accounts: The Best Currently Available List!

Spies

Maybe I'm wrong but aren't these a massive farce?

Take 1st direct for example, over 12 months you'll deposit £3600 earning you about £123 interest, this equates to 3.4% GROSS which isn't that fantastic and some easy access savers manage this rate! :mad:

ctdctd

Spies wrote: »

Maybe I'm wrong but aren't these a massive farce?

Take 1st direct for example, over 12 months you'll deposit £3600 earning you about £123 interest, this equates to 3.4% GROSS which isn't that fantastic and some easy access savers manage this rate! :mad:

You are wrong

You earn 8% for every penny that is in the account.

KTF

Yes but the average over the term is nearer to 3.4%

Spies

But you can only deposit a maximum of £300 in any month?

8% AER works out to 0.6% a month.

So

£300 is about £2 GROSS interest.
£600 is about £4 GROSS interest.

etc etc, and I realise it's compounded but it's still just a headline grabbing rate, it's nothing special.

So overall it works out to 3.4%, no use for people with a wedge of money as they'd be better off sticking it in an easy access.

alanq

You seem to be assuming that the funds must sit in account earning 0% until paid into the regular saver. If the funds are held in an easy access account UNTIL they are required to fund the regular saver one earns a significantly higher rate of interest on the limited amount.

Biggles

Spies wrote: »

So overall it works out to 3.4%, no use for people with a wedge of money as they'd be better off sticking it in an easy access.

It works out at 8% (gross AER). It's not intended for people with a wedge of money, it's for people who want to save a few hundred every month. This whole thread is about Regular Savings Accounts, hence the title.

noh

KTF wrote: »

Yes but the average over the term is nearer to 3.4%

No it is 8% AER

Spies

Much easier to look at it as 0.6% AER monthly GROSS as it's more accurate.

A lot of these deals much sucker in people thinking "ooh 8%".

noh

Spies wrote: »

Much easier to look at it as 0.6% AER monthly GROSS as it's more accurate.

A lot of these deals much sucker in people thinking "ooh 8%".

Obviously not suitable for the mathematically challenged.

If you care to use the calculator and read the guide on the main board here:-
http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#savingscalc

You may understand that you are wrong.

Spies

Rather than insulting me, why don't you explain it?

It's not 8% AER on £3600, the amount builds over the year, so you end up with £123 interest, I've already checked against the savings calculator.

123/3600 = 0.034 * 100 = 3.4% equivalent.

Argue that, maths genius.