Regular Savings Accounts: The Best Currently Available List!

mgarl10024

castle96 wrote: »

"I'd need to check, but I think someone suggested that when you reach the £6000 withdrawing £600 and putting the SO to £50"

I'm missing something here... why would you do above ? Is it 'just' to keep the a/c open/earning 3.05% ? Why £600? Why SO of £50 ? (£50 x 12 = £600, so .....?) Please explain.

I'd have to check the terms (at home) for the ISS4, but http://www.leedsbuildingsociety.co.uk/press/press-releases/2016/09/bonus-for-regular-savers-with-leeds/ says

The return of 2.30% includes a 1.80% bonus, payable if one single deposit of at least £50 is made into the account every month.
Up to £250 can be added to the account each month, up to a maximum investment of £6,000.

So, by withdrawing £600, you can both keep under the £6000 and keep paying in each month - keeping the bonus.

mhoc

castle96 wrote: »

"I'd need to check, but I think someone suggested that when you reach the £6000 withdrawing £600 and putting the SO to £50"

I'm missing something here... why would you do above ? Is it 'just' to keep the a/c open/earning 3.05% ? Why £600? Why SO of £50 ? (£50 x 12 = £600, so .....?) Please explain.

£250 per month standing order will mean I get to the max holding of £6000 in January 2019 (so £250 for 24 months)
but then you have to factor in any interest that is paid - not sure what the date is when this is paid, need to check this up, put it on the calendar for re doing the calculations .
So it will be sooner than January 2019.
What happens after that - would anything over £6000 be automatically returned?

castle96

But WHY are you to withdraw £600/set up SO for £50 ?????

steve65e

This is because the account has a maximum balance of 6k, a bonus paid annually (31 Aug), but no maturity date. So you need to find a way to keep getting interest on the maximum (almost) balance when you get there.

You have to pay in a minimum of £50 pcm to meet the conditions for the bonus (1.8% of the 2.3% total). If you didn't withdraw £600 you would go over 6k and break a different bonus condition. Also if you make more than one withdrawal per bonus year you won't get it.

This applies to those of us who opened this issue as soon as it came out (Sept 2016). If you opened it mid year you could withdraw less, but you'd still have to take out another £600 at the start of the next year. I think!

schiff

mhoc wrote: »

£250 per month standing order will mean I get to the max holding of £6000 in January 2019 2019 (so £250 for 24 months)
but then you have to factor in any interest that is paid - not sure what the date is when this is paid, need to check this up, put it on the calendar for re doing the calculations .
So it will be sooner than January 2019.
What happens after that - would anything over £6000 be automatically returned?

I opened my Issue 4 in September 2016 and I have notes that interest is paid out on 31/8/17 and 31/8/18 and that the maximum balance is £6000 excluding interest. If the max is £6000 surely you wouldn't bother putting in any more money just to find out what happens to the extra HTH

schiff

steve65e wrote: »

This is because the account has a maximum balance of 6k, a bonus paid annually (31 Aug), but no maturity date. So you need to find a way to keep getting interest on the maximum (almost) balance when you get there.

You have to pay in a minimum of £50 pcm to meet the conditions for the bonus (1.8% of the 2.3% total). If you didn't withdraw £600 you would go over 6k and break a different bonus condition. Also if you make more than one withdrawal per bonus year you won't get it.

This applies to those of us who opened this issue as soon as it came out (Sept 2016). If you opened it mid year you could withdraw less, but you'd still have to take out another £600 at the start of the next year. I think!

That's it in a nutshell!

mhoc

so with drawing £600 will keep the account viable for another 12 months adhering to the one withdrawal per year condition and minimum deposit of £50 per month to keep the 2.3% interest rate.

I am only up to month 6 as I was late to the party as usual - so I am playing catch up

Much easier sums if the interest is not counted as part of the £6 k

Then in the month I am over £5750 which will be December 2018 schedule the £600 withdrawal in week 3 of that month (and adjust the standing order down to £50) so I am then back down to a total £5150 or thereabouts at 2.3%

johnmoney05

steve65e wrote: »

This is because the account has a maximum balance of 6k, a bonus paid annually (31 Aug), but no maturity date. So you need to find a way to keep getting interest on the maximum (almost) balance when you get there.

You have to pay in a minimum of £50 pcm to meet the conditions for the bonus (1.8% of the 2.3% total). If you didn't withdraw £600 you would go over 6k and break a different bonus condition. Also if you make more than one withdrawal per bonus year you won't get it.

This applies to those of us who opened this issue as soon as it came out (Sept 2016). If you opened it mid year you could withdraw less, but you'd still have to take out another £600 at the start of the next year. I think!

How about the interest adding in? Surely should be withdrawing £600 + the interest added?

steve65e

johnmoney05 wrote: »

How about the interest adding in? Surely should be withdrawing £600 + the interest added?

No, the actual maximum balance is 6k + accrued interest, according to the (paper) t&cs I have. So you don't have to allow for the interest.

(Many thanks btw to whoever flagged this up first. I't hadn't occurred to me and I probably would have blown my bonus in year 3)

surreysaver

johnmoney05 wrote: »

How about the interest adding in? Surely should be withdrawing £600 + the interest added?

According to the link a few posts up thread, its £6,000 maximum investment. Which means money you put in. Not interest - interest would be outwith the investment. £6,000 divided be £250 is 24 equal payments into the account.