Barclays rainy day saver question.

tony3619

It says upto £5000 at 5%. How does that work exactly?

If I go to 5500 will I get 5% on the 5000 and 0.25% (or whatever ) on the 500? Or will it cancel out the 5% altogether

wmb194

tony3619 said:

It says upto £5000 at 5%. How does that work exactly?

If I go to 5500 will I get 5% on the 5000 and 0.25% (or whatever ) on the 500? Or will it cancel out the 5% altogether

Yes to your first question.

Noneforit999

Its really only worth adding exactly £5000 to it, anything above is worthless as there are far better savings accounts out there for the additional money

ColdIron

The Barclays web site is a fantastic resource for Barclays products

• 5% gross/5.12% AER2.on balances up to £5,000
• 0.15% gross/AER2 on balances over £5,000

https://www.barclays.co.uk/savings/instant-access/rainy-day-saver/

refluxer

ColdIron said:

The Barclays web site is a fantastic resource for Barclays products

• 5% gross/5.12% AER2.on balances up to £5,000
• 0.15% gross/AER2 on balances over £5,000

https://www.barclays.co.uk/savings/instant-access/rainy-day-saver/

To be fair to the OP, it could appear (to those less familiar with how bank accounts with a tiered interest rate work) from that info that a balance of £5500 might earn 0.15% on the whole amount, which is what they were getting at.

tony3619

refluxer said:

ColdIron said:

The Barclays web site is a fantastic resource for Barclays products

• 5% gross/5.12% AER2.on balances up to £5,000
• 0.15% gross/AER2 on balances over £5,000

https://www.barclays.co.uk/savings/instant-access/rainy-day-saver/

To be fair to the OP, it could appear (to those less familiar with how bank accounts with a tiered interest rate work) from that info that a balance of £5500 might earn 0.15% on the whole amount, which is what they were getting at.

Exactly. I wasnt planning on putting more than 5000 in. I just didn't know if it went over this whether it would be 0.15% on the entire amount. Thank you for being polite unlike some 👍

strawb_shortcake

I bet there are a lot of people that have never been able to save money with some of the interest rates available now. 
I'm 40 and this is my first time as an adult I've been able to have savings pay 5% so it shouldn't be a surprise if it seems like some are expecting a catch

Eco_Miser

There have been tiered rates where the whole of the balance attracts interest at the top tier rate. This is good where the rates increase with increasing balance (the normal situation) but would be bad where the rate decreases with increasing balance (as the account in question does, but the money in each tier gets the rate for the tier). So it's a reasonable question. "balances over £5000' is ambiguous and could mean the whole balance or just the part over £5000.

cricidmuslibale

Eco_Miser said:

There have been tiered rates where the whole of the balance attracts interest at the top tier rate. This is good where the rates increase with increasing balance (the normal situation) but would be bad where the rate decreases with increasing balance (as the account in question does, but the money in each tier gets the rate for the tier). So it's a reasonable question. "balances over £5000' is ambiguous and could mean the whole balance or just the part over £5000.

Just imagine for a moment if income tax, for example, worked in that way i.e. as soon as anyone started to earn even a penny over the personal allowance then the whole amount of earnings would be taxed at 20%, if anyone started to earn even a penny above the 40% threshold then all earnings would be taxed at 40%! It would cause a great deal of rancour amongst the population and possibly serious civil unrest!  

wolvoman

cricidmuslibale said:

Eco_Miser said:

There have been tiered rates where the whole of the balance attracts interest at the top tier rate. This is good where the rates increase with increasing balance (the normal situation) but would be bad where the rate decreases with increasing balance (as the account in question does, but the money in each tier gets the rate for the tier). So it's a reasonable question. "balances over £5000' is ambiguous and could mean the whole balance or just the part over £5000.

Just imagine for a moment if income tax, for example, worked in that way i.e. as soon as anyone started to earn even a penny over the personal allowance then the whole amount of earnings would be taxed at 20%, if anyone started to earn even a penny above the 40% threshold then all earnings would be taxed at 40%! It would cause a great deal of rancour amongst the population and possibly serious civil unrest!  

I might be wrong but I thought there was a period where stamp duty on houses did just this. I seem to recall there was a 'dead zone' price within which houses would never sold because of the stamp duty.

wolvoman

wolvoman said:

cricidmuslibale said:

Eco_Miser said:

There have been tiered rates where the whole of the balance attracts interest at the top tier rate. This is good where the rates increase with increasing balance (the normal situation) but would be bad where the rate decreases with increasing balance (as the account in question does, but the money in each tier gets the rate for the tier). So it's a reasonable question. "balances over £5000' is ambiguous and could mean the whole balance or just the part over £5000.

Just imagine for a moment if income tax, for example, worked in that way i.e. as soon as anyone started to earn even a penny over the personal allowance then the whole amount of earnings would be taxed at 20%, if anyone started to earn even a penny above the 40% threshold then all earnings would be taxed at 40%! It would cause a great deal of rancour amongst the population and possibly serious civil unrest!  

I might be wrong but I thought there was a period where stamp duty on houses did just this. I seem to recall there was a 'dead zone' price within which houses would never sold because of the stamp duty.

I was correct.
From 1999 to 2014 you paid 1% of the total property price for prices up to £250k and 3% on the whole price at £250,000 and up.

So the tax on a £250,000 property was £2,500
The tax on a £250,001 property was £7,500.03

Houses would never sell for between £250k and approx £258k.
All sorts of negotiating would take place to get the price down to £250k - fixtures & fittings being paid separately was a big thing.

Mental that it took until 2014 to resolve this.