Regular Savings Accounts: The Best Currently Available List!

NorthYorkie

Wheres_My_Cashback said:

NorthYorkie said:

Before getting carried away with the headline rates being quoted, just remember to halve the rate to find the approximate effective rate for the year.
Your first monthly deposit will get, say, 5% for the full year, but the second deposit will only get it for 11 months i.e. 4.58%, the third deposit for 10 months i.e. 4.16%, and so on. The twelfth will only get 1 months interest, 0.41%. 

As you and the majority of people already know the effective rate on all funds in the account is what's advertised so in your  example it's 5%.

A better way to put it would be that assuming a credit payment on the 1st each month you get 5% for 365 days for the first credit, 5% for 334 days on the next credit, 5% for 304 days on the next credit etc 

Don't think this click bait needs any further discussion here

Perhaps you had better tell this to Martin Lewis - see point 5 of this; https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/

Bridlington1

ForumUser7 said:

N.B. Re SRBS RS ~ "Deposits to this account must come from your nominated bank account via standing order." I was going to fund by internal transfer, but seems like that may not be possible. Anyone done this please?

I've only got the one SRBS account co can't comment on internal transfers but I have funded the SRBS regular saver from at least 4 different accounts by faster payment without issues.

RG2015

NorthYorkie said:

Wheres_My_Cashback said:

NorthYorkie said:

Before getting carried away with the headline rates being quoted, just remember to halve the rate to find the approximate effective rate for the year.
Your first monthly deposit will get, say, 5% for the full year, but the second deposit will only get it for 11 months i.e. 4.58%, the third deposit for 10 months i.e. 4.16%, and so on. The twelfth will only get 1 months interest, 0.41%. 

As you and the majority of people already know the effective rate on all funds in the account is what's advertised so in your  example it's 5%.

A better way to put it would be that assuming a credit payment on the 1st each month you get 5% for 365 days for the first credit, 5% for 334 days on the next credit, 5% for 304 days on the next credit etc 

Don't think this click bait needs any further discussion here

Perhaps you had better tell this to Martin Lewis - see point 5 of this; https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/

He says...

• 5.You'll earn what looks like half the headline interest rate

It only looks like half the rate. It isn't actually half the rate.

There is a big difference.

Bridlington1

ForumUser7 said:

ForumUser7 said:

On the SRBS adult accounts page, I noticed the RS has changed from saying availability ‘private individuals living in Staffordshire only’ to availability ‘private individuals’. I’ve verified this using the way back machine, and comparing what it said yesterday to what it says today. The summary box still references Staffordshire, as does the application process (yes/no question re residency in Staffordshire), but I’m wondering if perhaps they just need to be updated? Wishful thinking or have they opened the flood gates? I know it used to flick between the two before, but unsure if the application process was updated or not.

Confirmed ~ Flood gates opened! "It is now open to non Staffordshire residents and we will accept your application and I have fed this back to our marketing team to update the website too."

Also it appears Earl Shilton BS has once again become available for all UK residents to open. At 3.7% the regular saver isn't currently competitive but it may be worth keeping an eye on.

NorthYorkie

RG2015 said:

NorthYorkie said:

Wheres_My_Cashback said:

NorthYorkie said:

Before getting carried away with the headline rates being quoted, just remember to halve the rate to find the approximate effective rate for the year.
Your first monthly deposit will get, say, 5% for the full year, but the second deposit will only get it for 11 months i.e. 4.58%, the third deposit for 10 months i.e. 4.16%, and so on. The twelfth will only get 1 months interest, 0.41%. 

As you and the majority of people already know the effective rate on all funds in the account is what's advertised so in your  example it's 5%.

A better way to put it would be that assuming a credit payment on the 1st each month you get 5% for 365 days for the first credit, 5% for 334 days on the next credit, 5% for 304 days on the next credit etc 

Don't think this click bait needs any further discussion here

Perhaps you had better tell this to Martin Lewis - see point 5 of this; https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/

He says...

• 5.You'll earn what looks like half the headline interest rate

It only looks like half the rate. It isn't actually half the rate.

There is a big difference.

What is the difference?

In Martin's example, Matt gets £150 interest on a total investment of £3,000. Isn't that 5% of his investment, i.e. half the headline rate?

pookey

NorthYorkie said:

Before getting carried away with the headline rates being quoted, just remember to halve the rate to find the approximate effective rate for the year.
Your first monthly deposit will get, say, 5% for the full year, but the second deposit will only get it for 11 months i.e. 4.58%, the third deposit for 10 months i.e. 4.16%, and so on. The twelfth will only get 1 months interest, 0.41%. 

I usually use the calculator on mse
https://www.moneysavingexpert.com/savings/regular-savings-calculator/ 
To help me decide what works out best. Some of the high interest ones only let you pay in a smaller amount so I prefer to have a couple that pay out better as its easier for me to keep track of. Of course everyone has different preferences but I find the calculator the best way to make a decision 

NorthYorkie

Bridlington1 said:

NorthYorkie said:

Section62 said:

NorthYorkie said:

Before getting carried away with the headline rates being quoted, just remember to halve the rate to find the approximate effective rate for the year.
Your first monthly deposit will get, say, 5% for the full year, but the second deposit will only get it for 11 months i.e. 4.58%, the third deposit for 10 months i.e. 4.16%, and so on. The twelfth will only get 1 months interest, 0.41%. 

The "effective rate" is whatever the headline rate is.  You don't have to halve it.

The amount of interest earned can be estimated based on around half the final balance - assuming regular pay-ins of the same amount - as the average balance over the time period will be about half.  On which the headline interest rate is being paid.

In your example, the last payment would get 5% paid on a pro-rata basis for one month.  The interest rate isn't 0.41%.  It is that the duration the money is earning 5% is 1/12th of a year.

I think we are saying the same thing in different ways! Working out the interest at 5% on half the final balance (say £300 on a £50 pm account) equals £15 interest, whereas applying half the interest rate (2.5%) on the actual final balance of £600 also produces £15 interest. QED.

Though if I may be pedantic in reality a 5% regular saver would have an average balance of £325 over the entire year assuming you open the account on 1st of the month and find it on 1st of each month. 5% of £325 is £16.25. Thus you would earn the equivalent of 2.7083333333....% interest on the final balance over the entire year.

Yes, you may.

If I may be permitted to do likewise, I did say 'approximate' effective rate.

AmityNeon

NorthYorkie said:

Before getting carried away with the headline rates being quoted, just remember to halve the rate to find the approximate effective rate for the year.
Your first monthly deposit will get, say, 5% for the full year, but the second deposit will only get it for 11 months i.e. 4.58%, the third deposit for 10 months i.e. 4.16%, and so on. The twelfth will only get 1 months interest, 0.41%. 

I'm not sure why you decided to beat this dead horse, out of the blue, in a thread that's over 800 pages long. You weren't asking a question, or responding to one.

IanManc

NorthYorkie said:

Before getting carried away with the headline rates being quoted, just remember to halve the rate to find the approximate effective rate for the year.
Your first monthly deposit will get, say, 5% for the full year, but the second deposit will only get it for 11 months i.e. 4.58%, the third deposit for 10 months i.e. 4.16%, and so on. The twelfth will only get 1 months interest, 0.41%. 

No one was getting carried away. And you get the full quoted interest rate on the deposit for the time that the money is in the account, not half of the interest rate. That's just like any other account.

ColdIron

NorthYorkie said:

RG2015 said:

NorthYorkie said:

Wheres_My_Cashback said:

NorthYorkie said:

Before getting carried away with the headline rates being quoted, just remember to halve the rate to find the approximate effective rate for the year.
Your first monthly deposit will get, say, 5% for the full year, but the second deposit will only get it for 11 months i.e. 4.58%, the third deposit for 10 months i.e. 4.16%, and so on. The twelfth will only get 1 months interest, 0.41%. 

As you and the majority of people already know the effective rate on all funds in the account is what's advertised so in your  example it's 5%.

A better way to put it would be that assuming a credit payment on the 1st each month you get 5% for 365 days for the first credit, 5% for 334 days on the next credit, 5% for 304 days on the next credit etc 

Don't think this click bait needs any further discussion here

Perhaps you had better tell this to Martin Lewis - see point 5 of this; https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/

He says...

• 5.You'll earn what looks like half the headline interest rate

It only looks like half the rate. It isn't actually half the rate.

There is a big difference.

What is the difference?

Well one is a confected approximation and the other is very close to what what actually happened

• With your method you would receive half the rate (which nobody paid) on an amount (that was never fully deposited)
• With the other you use the actual rate (the headline rate that was paid) on an amount that was deposited (the average annual balance)

One problem that can arise from the first, and this happens a lot on this board, is that someone looking at the first would see 2.50% on, say, £3,000 and conclude that they  would be better off putting their £3,000 in an account paying 3.00% which would obviously be a mistake. That wouldn't happen with the second and a 5.00% rate

If you hang around this board long enough you will see many many posts from people who think they have been diddled and call regular savers a sort of scam. It's probably the single most common source of confusion here, perhaps over 1 post a week