Regular Savings Accounts: The Best Currently Available List!

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.

Special_Saver2

Kernel_Sanders wrote: »

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.

I would suggest you check the interest rate with TSB. I think the account you opened is only paying 2% interest. I think the 5% interest is only for people who opened the account from 1st July 2015 onwards. (If this is the case, it would be worth asking TSB staff if you could close the 2% account and open a new one paying 5%.)

Kernel_Sanders wrote: »

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.

Yes, the Mansfield BS Regular Savings account issues 1-3 interest rate does not fall after 12 months (which is why I had them in post 2) but the issue 4 interest rate does fall after 12 months (which is why that account appears in post 4).

Regarding the TSB 5% Monthly Saver account, I can add myself to the list of people who got this message "Sorry, but we can't show you some recent transactions as your name wasn't on the account when these transactions were processed" but I can confirm that £250 transferred by FP from my TSB current account to my TSB 5% Monthly Saver has successfully made it there (dated 1st July) and I have set up a standing order from my TSB current account from 1st August.

SS2

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For those new to this thread, the first few posts are constantly updated and are here: http://forums.moneysavingexpert.com/...=608697&page=1

GazHol

It would be helpful to note the SO conditions for the M&S monthly saver:
55. The first standing order payment must be at
least one calendar month after account
opening. You can change the amount of the
monthly standing order subject to clauses 53
and 54 above. You can only make one standing
order payment to your M&S Monthly Saver
account in any one month.
56. You can stop a standing order that has been set
up to your M&S Monthly Saver account and set
up a new standing order at a later date.

For those RS that just specify payments per calendar month, the interest gained can be increased by up to ~13% by making the first payment on the last working day of the month and then every other payment on the 1st of the next month. (1st gets 366 days of interest, 2nd gets 363-365 days etc.).

The M&S conditions appear to specifically prevent this interest 'optimisation', has anyone tested this (or sought clarification from M&S)?

Ed-1

GazHol wrote: »

Has anyone tested this (or sought clarification from M&S)?

Yes if you set up a new standing order for any other date of the month other than the date you opened it, they withdraw the payment back into your current account.