nat west savings builder account advice please?

eskbanker

RG2015 said:

LittleVoice said:g

caveman38 said:

qwert10 said:

Hi I have a nat wets savings builder which needs a £50 top up each month and pays 0.95% up to £10k but the balance must go up by £50 a month so any idea how you can draw out the amount over £10k? If the excess is drawn out then the balance cannot go up next month?

On NW & RBS it quotes 1%. Where did you see 0.95%?

1% is the AER but interest is paid monthly

This is correct, but not the reason for the 0.95% the OP is quoting. NatWest is unusual in that they pay the full 1% AER every month.

I think this is more to do with the insignificance of compounding when the interest rate is only 1%, i.e. any variance between AER and gross is too small to be quoted when only using two decimal places.

qwert10

Your interest rate

Your interest rate is 0.94% gross, 0.94% AER
This is based on your balance from end of day yesterday.

RG2015

eskbanker said:

RG2015 said:n

LittleVoice said:g

caveman38 said:

qwert10 said:

Hi I have a nat wets savings builder which needs a £50 top up each month and pays 0.95% up to £10k but the balance must go up by £50 a month so any idea how you can draw out the amount over £10k? If the excess is drawn out then the balance cannot go up next month?

On NW & RBS it quotes 1%. Where did you see 0.95%?

1% is the AER but interest is paid monthly

This is correct, but not the reason for the 0.95% the OP is quoting. NatWest is unusual in that they pay the full 1% AER every month.

I think this is more to do with the insignificance of compounding when the interest rate is only 1%, i.e. any variance between AER and gross is too small to be quoted when only using two decimal places.

Maybe, but I seem to recall the Tesco current account with a 1% AER using 0.99% for the monthly calculation.

eskbanker

RG2015 said:

eskbanker said:

RG2015 said:n

LittleVoice said:g

caveman38 said:

qwert10 said:

Hi I have a nat wets savings builder which needs a £50 top up each month and pays 0.95% up to £10k but the balance must go up by £50 a month so any idea how you can draw out the amount over £10k? If the excess is drawn out then the balance cannot go up next month?

On NW & RBS it quotes 1%. Where did you see 0.95%?

1% is the AER but interest is paid monthly

This is correct, but not the reason for the 0.95% the OP is quoting. NatWest is unusual in that they pay the full 1% AER every month.

I think this is more to do with the insignificance of compounding when the interest rate is only 1%, i.e. any variance between AER and gross is too small to be quoted when only using two decimal places.

Maybe, but I seem to recall the Tesco current account with a 1% AER using 0.99% for the monthly calculation.

Not sure how they could get away with that, as paying 0.99% gross monthly would only compound to 0.9945% annually, so I can't see how they could justifiably round that to 1.00% when working to two decimal places, although I haven't gone looking for the detailed technical definitions of rounding and so on that those quoting AERs have to comply with!

RG2015

eskbanker said:

RG2015 said:

eskbanker said:

RG2015 said:n

LittleVoice said:g

caveman38 said:

qwert10 said:

Hi I have a nat wets savings builder which needs a £50 top up each month and pays 0.95% up to £10k but the balance must go up by £50 a month so any idea how you can draw out the amount over £10k? If the excess is drawn out then the balance cannot go up next month?

On NW & RBS it quotes 1%. Where did you see 0.95%?

1% is the AER but interest is paid monthly

This is correct, but not the reason for the 0.95% the OP is quoting. NatWest is unusual in that they pay the full 1% AER every month.

I think this is more to do with the insignificance of compounding when the interest rate is only 1%, i.e. any variance between AER and gross is too small to be quoted when only using two decimal places.

Maybe, but I seem to recall the Tesco current account with a 1% AER using 0.99% for the monthly calculation.

Not sure how they could get away with that, as paying 0.99% gross monthly would only compound to 0.9945% annually, so I can't see how they could justifiably round that to 1.00% when working to two decimal places, although I haven't gone looking for the detailed technical definitions of rounding and so on that those quoting AERs have to comply with!

Thank you.

I was in error with my 1% comment. I was thinking of the 1.50% NatWest anomaly.

When NatWest paid 1.50% AER, they paid 1.50% (p.a.) monthly when others paying 1.50% AER such as Santander and TSB paid 1.49% (p.a) monthly.

eskbanker

RG2015 said:

eskbanker said:

RG2015 said:

eskbanker said:

RG2015 said:n

LittleVoice said:g

caveman38 said:

qwert10 said:

Hi I have a nat wets savings builder which needs a £50 top up each month and pays 0.95% up to £10k but the balance must go up by £50 a month so any idea how you can draw out the amount over £10k? If the excess is drawn out then the balance cannot go up next month?

On NW & RBS it quotes 1%. Where did you see 0.95%?

1% is the AER but interest is paid monthly

This is correct, but not the reason for the 0.95% the OP is quoting. NatWest is unusual in that they pay the full 1% AER every month.

I think this is more to do with the insignificance of compounding when the interest rate is only 1%, i.e. any variance between AER and gross is too small to be quoted when only using two decimal places.

Maybe, but I seem to recall the Tesco current account with a 1% AER using 0.99% for the monthly calculation.

Not sure how they could get away with that, as paying 0.99% gross monthly would only compound to 0.9945% annually, so I can't see how they could justifiably round that to 1.00% when working to two decimal places, although I haven't gone looking for the detailed technical definitions of rounding and so on that those quoting AERs have to comply with!

Thank you.

I was in error with my 1% comment. I was thinking of the 1.50% NatWest anomaly.

When NatWest paid 1.50% AER, they paid 1.50% (p.a.) monthly when others paying 1.50% AER such as Santander and TSB paid 1.49% (p.a) monthly.

Yes, unlike 1.00%, 1.50% is large enough for gross and AER to be different when shown to two decimal places, i.e. an account can either be 1.49% gross and 1.50% AER, or 1.50% gross and 1.51% AER, but not both as 1.50%.

RG2015

@eskbanker,

I agree that it cannot be 1.50% gross and AER. However, NatWest previously quoted an AER of 1.50% but paid me a monthly interest calculated on my daily balance at 1.50% / 365.

NatWest were in error but no one is going to complain if they expected 1.49% monthly and actually received 1.50%.

qwert10

interest dropped now so closed it anyway. thanks all!

RG2015

qwert10 said:

interest dropped now so closed it anyway. thanks all!

Pretty soon 0.75% will be a decent rate so I am keeping mine.