Regular Savings Accounts: The Best Currently Available List!

nomorekids

pqrdef wrote: »

The way you describe it, it would be worth over 6%. But I suspect the 3 1/2% is what you get, i.e. the 3% bonus will be calculated on the daily balance, not on the final balance.

The 3% balance is calculated on the payments not the daily balance, that's what is so confusing. I've rung them and even they can't help.

pqrdef

arsenalboy wrote: »

I applied by post a year ago by downloading a generic form, both were returned with a polite letter! However, I live a little bit away from them, Devon......!

Me too. I couldn't quite convince myself that they would actually return my cheque. But they did.

rb10

nomorekids wrote: »

Can anyone tell me what interest I would earn on say £100 per month in Ipswich smart save. The way I read it is only 1/2 % on £100 in first month, 1/2 % on £100 + (£100 x 1/2 %) on second month etc plus 3% on 12 lots of £100 only, this is very different and I suspect less than 3 1/2% calculated on daily balance.

What is the real rate of interest?

The rate of interest on this account is 3.5%.

The easiest way to calculate the total amount of interest you'd receive in a year on a regular savings account is:

[Monthly payment] * [Interest rate] * 6.5

So in your case, 100*0.035*6.5 = £22.75.

Remember to deduct tax if you are a taxpayer.

For comparison, if you instead saved in a 'normal' account, paying c. 2%, you'd be getting more like £13 in a year.

nomorekids wrote: »

The 3% balance is calculated on the payments not the daily balance, that's what is so confusing.

The interest is calculated based on the balance in the account at the end of each day. This is exactly the same as all other savings accounts.

innovate

nomorekids wrote: »

Can anyone tell me what interest I would earn on say £100 per month in Ipswich smart save. The way I read it is only 1/2 % on £100 in first month, 1/2 % on £100 + (£100 x 1/2 %) on second month etc plus 3% on 12 lots of £100 only, this is very different and I suspect less than 3 1/2% calculated on daily balance.

What is the real rate of interest?

The real rate of interest is 3.5% AER, variable, incl 3% bonus (http://www.ibs.co.uk/images/documents/savings-investment/interest_rates.pdf)

You can use the MSE Regular Saver calculator to work out your amount of interest: http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#calculator

Milarky

The Ipswich Smartsave pays the bonus only on payments received during the year - not on any balance carried forward into the year from a previous year. That means you are advised to reduce a balance at the end of each year to the minimum operating balance (of £10) and start over. The £10 then earns 0.5% percent and whatever you pay in earns 3.5%.

Another way to do the calculation is that you would get 3.5% less 30p if you wish to maximise annual interest.

Timing is a bit tricky so it may be better to do the 'free' withdrawal just before the end of a year and have capitalised interest also earning 0.5% along with the tenner.

Dagobert

The Ipswich Smartsave is restricted to certain post code areas:

Please note that our savings products and deposit accounts are only available to existing members or new applicants resident in our local postcode areas IP, NR, CO, CM, CB and PE.

lightbulb2760

First Direct's 8% Regular Saver is to be withdrawn from Friday 2nd February, according to today's Savings Champion Rate Alert:

First Direct is set to withdraw its market leading Regular Savings account paying 8.00% tax free/AER on Friday 2nd February. You can save from £25 to £300 per month for a fixed term of 12 months. In order to apply for the account, you need to have a First Direct 1st Current Account. If you are interested, you still have time to open the account.

innovate

Gulp. Hugely worse than what we could have expected.:eek:

badger09

innovate wrote: »

Gulp. Hugely worse than what we could have expected.:eek:

Looks like wastedtalent wasn't completely wrong then

https://forums.moneysavingexpert.com/discussion/4393803

innovate

badger09 wrote: »

Looks like wastedtalent wasn't completely wrong then

https://forums.moneysavingexpert.com/discussion/4393803

Sadly not, no