Regular Savings Accounts: The Best Currently Available List!

dark.knight_3

veryintrigued wrote: »

They must have had some help with calculating the % in their signature coming out with nonsense like that....

I would advise keeping your comments to yourself if that is all you have to offer.

veryintrigued

dark.knight wrote: »

No offence was intended, it was an genuine question and I would like to know. I only have one with First Direct which is at 5% (down from 6 last year) I have looked around and seen some of these but I didn't think they were worth the effort just for say £60 over a year. Does having so many mean the actual rate increases by recycling the money to make it worthwhile?

Revisit your '2% pays equivalent of 1% after a year' comment.

Its incorrect - or do you think you are getting 2.5% with FD?

veryintrigued

dark.knight wrote: »

I would advise keeping your comments to yourself if that is all you have to offer.

I'd advise popping back to school!

dark.knight_3

No need - last year i deposited 3600 @ 6% and i got 116.33 interest

116.33/3600*100 = 3.23% i.e more or less half of the quoted rate

This year i expect to get

3600*2.5% = 90.00

i.e more of less half of what the quoted rate is

Calculator here
http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#calculator

Using above calc

300*12 = 3600
5% annual rate
96.77interest

96.77/3600*100 = 2.68% - i.e. half

If i'm missing something, please let me know

Eco_Miser

dark.knight wrote: »

If i'm missing something, please let me know

You are missing that the money is only in the account for half a year (on average), and that for the other half year it is earning somewhere else, or you haven't even got it yet.

Go through a year calculating the interest earned each month, you'll see it's one twelfth of the advertised gross rate, making the full gross rate for the full year, but each month has a different amount deposited, so a different number of pounds interest earned.

schiff

dark.knight wrote: »

No need - last year i deposited 3600 @ 6% and i got 116.33 interest

The interest on your first monthly deposit of £300 is £1.50 - right?

In month two you have a balance of £600 on which the interest is £3 - right?

Work that through month by month till month 12 when you arrive at your figure.

Now calculate the interest earned in months one and two at 6% - £300 at 6% and £600 at 6%. Inescapable fact - you are getting 6% on your money.

Be happy

Kernel_Sanders

dark.knight wrote: »

Excuse me for being flippant but why would anyone have a regular saver that pays less than 2%. A basic calulation for the interest recieved is to half the interest and that its roughly what you'd get for a year i.e a 2% RS would net the equivalent of 1% after a year. You can get that in a number of savings account and save a lot more than what you can on regular savers

dark.knight wrote: »

300*12 = 3600
5% annual rate
96.77interest

96.77/3600*100 = 2.68% - i.e. half

If i'm missing something, please let me know

You are missing the fact that the interest rate is per annum, i.e. the interest for each pound you have in is proportioned by the number of days it is in there. Thus, only the first month's subscription will earn all of the quoted rate. Your argument completely ignores the interest funds are getting elsewhere whilst waiting to feed the RS.

typistretired

Fastest account I have opened in a long time. Opened an online account and the new regular saver issue 3 immediately. They gave details of account and sort number so was able to transfer £250 immediately. Interest is showing at 0.10% but their help section says the correct interest rate will show when funds have cleared next working day.

dark.knight_3

To the last 3 posters - i think i have been misunderstood

That is exactly what I am saying. I know that the money has not been in the account for the full term and only earns between 12 twelfths and 1 twelfth for the last deposit. So in my calculation a 6% earns roughly 3% after it matures....i.e. half the quoted rate. I am not expecting 5 or 6%. "Very Intrigued" after the insults said "Its incorrect - or do you think you are getting 2.5% with FD?"... yes, I do think after 12 months you get a Net of 2.5% because the money has not been in the account for the full 12 months - do they think it will earn 5%?

To be honest I thought there may have been some sort of way to increase on the amount you earn by having and why people have 30 regular savers and was interested to know the answer.

Jo_Blogs

veryintrigued wrote: »

They must have had some help with calculating the % in their signature coming out with nonsense like that....

You can only hope lots of others think similar tripe so that these sorts of offers don't get blown out of the market by the MSE massive

:rotfl::rotfl::rotfl: