TSB Monthly Saver still 2%

MACKEM99

george4064 said:

Slightly depressing to see we're now after 2.0% regular savers!

Which of course is really 1%.

clivep

MACKEM99 said:

george4064 said:

Slightly depressing to see we're now after 2.0% regular savers!

Which of course is really 1%.

Which of course is actually 2.0% AER, the meaningful interest rate.

MACKEM99

clivep said:

MACKEM99 said:

george4064 said:

Slightly depressing to see we're now after 2.0% regular savers!

Which of course is really 1%.

Which of course is actually 2.0% AER, the meaningful interest rate.

clivep said:

MACKEM99 said:

george4064 said:

Slightly depressing to see we're now after 2.0% regular savers!

Which of course is really 1%.

Which of course is actually 2.0% AER, the meaningful interest rate.

clivep said:

MACKEM99 said:

george4064 said:

Slightly depressing to see we're now after 2.0% regular savers!

Which of course is really 1%.

Which of course is actually 2.0% AER, the meaningful interest rate.
Yes for the amount you put in for 12 months.  Then 11/12th of 2% for next month and so on till the last month is 1/12 of 2%.  Unless I am missing something?

clivep

soulsaver said:

clivep said:

Opened TSB, Lloyds & BOS 2% ones yesterday.

Already have HBOS, HBSC, First Direct, M&S, Santander and Club Lloyds ones currently paying better rates.

Hi Clive Who is BOS if you don't mean Halifax BOS? 

BOS is Bank of Scotland.

HBOS (Halifax Bank of Scotland) is a group formed from the merger of Halifax plc and Bank of Scotland plc and this group was later acquired by Lloyds Bank.

MACKEM99

MACKEM99 said:

clivep said:

MACKEM99 said:

george4064 said:

Slightly depressing to see we're now after 2.0% regular savers!

Which of course is really 1%.

Which of course is actually 2.0% AER, the meaningful interest rate.

clivep said:

MACKEM99 said:

george4064 said:

Slightly depressing to see we're now after 2.0% regular savers!

Which of course is really 1%.

Which of course is actually 2.0% AER, the meaningful interest rate.

clivep said:

MACKEM99 said:

george4064 said:

Slightly depressing to see we're now after 2.0% regular savers!

Which of course is really 1%.

Which of course is actually 2.0% AER, the meaningful interest rate.
Yes for the amount you put in for 12 months.  Then 11/12th of 2% for next month and so on till the last month is 1/12 of 2%.  Unless I am missing something?

So if you add up 2%, 11/12 of 2%, 10/12 of 2% all the way down to 1/12 of 2% and then divide the total by 12 you are getting 1%.

RG2015

MACKEM99 said:

MACKEM99 said:

clivep said:

MACKEM99 said:

george4064 said:

Slightly depressing to see we're now after 2.0% regular savers!

Which of course is really 1%.

Which of course is actually 2.0% AER, the meaningful interest rate.

clivep said:

MACKEM99 said:

george4064 said:

Slightly depressing to see we're now after 2.0% regular savers!

Which of course is really 1%.

Which of course is actually 2.0% AER, the meaningful interest rate.

clivep said:

MACKEM99 said:

george4064 said:

Slightly depressing to see we're now after 2.0% regular savers!

Which of course is really 1%.

Which of course is actually 2.0% AER, the meaningful interest rate.
Yes for the amount you put in for 12 months.  Then 11/12th of 2% for next month and so on till the last month is 1/12 of 2%.  Unless I am missing something?

So if you add up 2%, 11/12 of 2%, 10/12 of 2% all the way down to 1/12 of 2% and then divide the total by 12 you are getting 1%.

What about the 11 months worth of interest you are getting before it goes into the regular saver account? This could be earning interest in an easy access account.

eskbanker

MACKEM99 said:
So if you add up 2%, 11/12 of 2%, 10/12 of 2% all the way down to 1/12 of 2% and then divide the total by 12 you are getting 1%.

That only applies if you misleadingly choose to regard the interest earned from a regular saver as (full final balance x half interest rate), whereas it's much more realistic to present it as (average balance x full interest rate), reflecting the fact that interest is only earned on money actually in the account at the time....

ColdIron

MACKEM99 said:

So if you add up 2%, 11/12 of 2%, 10/12 of 2% all the way down to 1/12 of 2% and then divide the total by 12 you are getting 1%.

You're not the first, and won't be the last, to make this mistake. It comes up regularly. Every pound you put in will be earning 2.00% AER but not every pound will be there for a year. Rather than thinking that you are getting a lower rate than they are actually paying you it is more helpful to think of it in terms of the advertised rate multiplied by the average balance as that is the reality of what is happening

If you want a quick ready reckoner try this - the monthly deposit * the rate * 6.5

So for TSB this would be 250 * 0.02 * 6.5 = £32.50

RG2015

ColdIron said:

MACKEM99 said:

So if you add up 2%, 11/12 of 2%, 10/12 of 2% all the way down to 1/12 of 2% and then divide the total by 12 you are getting 1%.

You're not the first, and won't be the last, to make this mistake. It comes up regularly. Every pound you put in will be earning 2.00% AER but not every pound will be there for a year. Rather than thinking that you are getting a lower rate than they are actually paying you it is more helpful to think of it in terms of the advertised rate multiplied by the average balance as that is the reality of what is happening

If you want a quick ready reckoner try this - the monthly deposit * the rate * 6.5

So for TSB this would be 250 * 0.2 * 6.5 = £32.50

This will really confuse them.

£250 x 0.2 x 6.5 = £325.00

Now that is worth having!

ColdIron

RG2015 said:

ColdIron said:

MACKEM99 said:

So if you add up 2%, 11/12 of 2%, 10/12 of 2% all the way down to 1/12 of 2% and then divide the total by 12 you are getting 1%.

You're not the first, and won't be the last, to make this mistake. It comes up regularly. Every pound you put in will be earning 2.00% AER but not every pound will be there for a year. Rather than thinking that you are getting a lower rate than they are actually paying you it is more helpful to think of it in terms of the advertised rate multiplied by the average balance as that is the reality of what is happening

If you want a quick ready reckoner try this - the monthly deposit * the rate * 6.5

So for TSB this would be 250 * 0.2 * 6.5 = £32.50

This will really confuse them.

£250 x 0.2 x 6.5 = £325.00

Now that is worth having!

Oops, corrected