Regular Savings Accounts: The Best Currently Available List!

Kernel_Sanders

Archi_Bald wrote: »

If it went straight away, it was most likely a Faster Payment, not an SO.

There has been some discussion with the Lloyds Rep whether they can distinguish between SOs and FPs when the payments come from another bank. The Lloyds Rep said they could, and since the TSB system and terms are basically a clone of the Lloyds ones, I assume TSB can too. The T&Cs say you must pay by SO. I didn't want to risk breaking the T&Cs for the sake of 1 day's interest on £250 (about 3p before tax).

I opened one online (accidentally!) on 30 June, so decided to fund it there and then with a £250 FP from Santander. I assumed TSB really meant 'by electronic transfer' instead of specifically 'standing order' but after reading this thread, I'll use SOs for this and subsequent months.

Special_Saver2 wrote: »

I have also removed the Mansfield BS Regular Savings (Issue 3) account from post 2 and replaced it with the issue 4 account in post 4 as the interest rate drops after 12 months on this account. Besides the interest rate being 2.5% now,

I've had one for years without the interest dropping after 12 months. Maybe it's for new applicants, or ones not in our area. I think my own interest rate fell from 2.7% to just over 2% on 1 July.

typistretired wrote: »

TSB constantly amuse me when I clicked on monthly saver account today I received the following message. (The £250 standing order had been processed)
"Sorry, but we can't show you some recent transactions as your name wasn't on the account when these transactions were processed"

I also got this, but with a FP from Santander. Completely bizarre!

RebekahR

Hello Hello - Just opened this mid June and only have 80p interest on £500 for 12 days??! Am I missing something ...?

This is the tsb 5% classic plus current account for savings.

glider3560

RebekahR wrote: »

Hello Hello - Just opened this mid June and only have 80p interest on £500 for 12 days??! Am I missing something ...?

Not sure which account you are referring to, but that is approximately 4.8% AER.

YorkshireBoy

RebekahR wrote: »

Hello Hello - Just opened this mid June and only have 80p interest on £500 for 12 days??! Am I missing something ...?

This is the tsb 5% classic plus current account for savings.

£500 x 4.89% / 365 x 12 = £0.80 (gross)


If the account is full its about £6.50 a month after BR tax.

Ed-1

RebekahR wrote: »

Hello Hello - Just opened this mid June and only have 80p interest on £500 for 12 days??! Am I missing something ...?

This is the tsb 5% classic plus current account for savings.

No that amount is correct. You received 4.89% interest per day:

[(500 x 0.0489)/365] x 12 days = £0.8038 interest.

saintalan

RebekahR wrote: »

Hello Hello - Just opened this mid June and only have 80p interest on £500 for 12 days??! Am I missing something ...?

This is the tsb 5% classic plus current account for savings.

Yes I think you might be but not interest!
£500 At 4% = £20/year how much were you expecting for 12 days?

Alan

PS sorry only just seen other replies, should have refreshed!

RebekahR

Sorry dumb as they come me! Why is it 4.89 instead of 5%? Is it taxed? I'm a stay at home mum so shouldn't pay tax.

This is the tsb 5% on up to 2k classic plus current account for savings from martins switching offer (although I didn't switch)

YorkshireBoy

RebekahR wrote: »

Sorry dumb as they come me! Why is it 4.89 instead of 5%? Is it taxed? I'm a stay at home mum so shouldn't pay tax.

You always earn interest at the gross p.a. rate (in this case, 4.89%). Once the interest is paid each month it is said to 'compound' (ie you earn interest on interest). The problem is that when the account is full you cannot benefit from this compounding.


It will be taxed unless you've completed a R85 form with them. But if you've received 80p (not 64p) then you must have.

RebekahR

Right just been to Martin's school to learn about compounds etc - A little over my head but I think I get the gist of it. Not sure why its less but I understand its only for the year and because interest is monthly rather than annually. So compounding stops at the 2k? Does it grow on that 2k only or nothing at all once that amount has been reached? I have set out to pay in £500 p/m until the end of September and then just bounce £500 between this and my current account.

Eco_Miser

Banks don't actually pay compound interest. They pay simple interest on whatever is in the account at the end of each day (or for this account, on £2000 if that is less) and add the interest to the account at intervals (calendar months for this account). This gives the effect of compound interest, but the bank don't calculate it using the compound interest formula.
Each month you get the interest earned on the lower of £2000 or balance for for each day since the preceding interest day. Once you have £2000 in the account, and keep it at £2000 or more, you get interest only on £2000, and there is no compounding. You should pay £500 in each month and £508 and some pence out, to hold the balance at exactly £2000, because you get no interest on the excess over £2000.