Regular Monthly Saving Account

delighted12

As anyone else experienced this.. I have opened various monthly savings account with fixed interest rate for 12 months @ 2.75%, made the maximum monthly deposit, no withdrawals made. But when it comes to paying the interest, they pay less than what was previously quoted. 

colsten

I am reasonably certain that you have misunderstood how Regular Savers work. Can I suggest you read this article: https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/

If you are still unclear after reading it, please post more detail - exactly how much did you deposit when (exact dates and amounts matter), and how much interest did you get paid.

delighted12

@Colston thank you for that response, it makes sense. 

When I opened the account it gave an example of interest paid, if deposited the maximum amount on a regular basis for 12 months with no withdrawals made. I set up a Standing Order paying in £300 a month @ 2.75% total interest quoted was £99. I am still searching through my old documents for the original quote, to query it.  Previously with another bank I deposited £200 per month, standing order again and received £64 at the end of the 12 months, interest rate was also 2.75% which was what was quoted in the example. 

eskbanker

delighted12 said:

@Colston thank you for that response, it makes sense. 

When I opened the account it gave an example of interest paid, if deposited the maximum amount on a regular basis for 12 months with no withdrawals made. I set up a Standing Order paying in £300 a month @ 2.75% total interest quoted was £99. I am still searching through my old documents for the original quote, to query it.  Previously with another bank I deposited £200 per month, standing order again and received £64 at the end of the 12 months, interest rate was also 2.75% which was what was quoted in the example. 

You must be mistaken - you'd only earn £99 from a 2.75% interest account if the £3600 final balance was in the account for the whole year, but obviously this doesn't apply for regular savers, so the maximum interest will be about half that (as the average balance over the year is about half the final figure).  Same applies for a £200/month regular saver, you can't get £64 interest at 2.75% from one of those over a year....

RG2015

Two years ago, First Direct was paying 5% on their regular saver allowing deposits of up to £300 per month. They would have quoted about £97 interest for the full amount for 12 months.

I do not recall any bank paying 2.75% on up to £200 per month, but there may have been a building society paying this. However, this amount at 5% would have paid about £64 upon maturity.

wiseonesomeofthetime

I had a First Direct @ 2.75% which was funded to the max (£300pm) and matured in April this year.

I received £53.43, which was as expected

In 2019-2020, at the rate of 5%, the same product netted me £97.01 (per @RG2015 figure above)

Just for info/comparison.

pokora

Maybe you got a Regular saving account with variable rate ?
Did you receive back money ?