Interesting - Nationwide Flex Regular Saver 8% AER

eskbanker

[Deleted User] said:
However if websites Occam Investing, Nutmeg and the Calculator site are anything to go by the interest should be £323.19.

Only if you feed the wrong information into them....

[Deleted User]

BoGoF said:

[Deleted User] said:

BoGoF said:

[Deleted User] said:

BoGoF said:

What do you think it should be?

Give Nationwide a call

No need when the website says (estimate) £104.

Yes it does   However if websites Occam Investing, Nutmeg and the Calculator site are anything to go by the interest should be £323.19.

AI Captain...

Suggest you read the responses since and see why you are wrong and not comparing like for like

Yes of course   The others present no math to support either Nationwide or themselves. So what math is Nationwide using to arrive at the princely undersum of £104. What should smart savers do, believe everthing they read?

zagfles

BoGoF said:

Officer_Dibble said:

Ah, seeing their example I think they may have got it wrong, but I'll take £104 interest happily if it arrives. I'm not sure their customer service phone answerers will find the correct calculation on their flowcharts though.

I calculate £103.91 but that doesn't take account of compounding (which would be a few pence)

There is no compounding. Interest is paid annually at the end of the term.

ColdIron

Officer_Dibble said:

Exodi said:

Using FV in Excel =FV(0.08/12,12,-200,0,1) gives £106.59 interest, but you can expect that they've factored in the things like payments clearing. Nationwide states £104.00 on their website.

With respect, I know repeatedly calling them to ask insignificant questions is amusing to you, but I'm sure both you and them have more productive things to do with your time.

[Deleted User] said:

BoGoF said:

What do you think it should be?

Give Nationwide a call

Well if anything good's come of this discussion it's that I've learnt about the FV function. I've always just halved the interest rate on annual savers as my interest guesstimate and done it in my head, but it's obviously a slight underestimation - somewhere between £8 and £10.59 on this occasion.

Monthly amount * interest rate / 100 * 6.5 will get you to the right ballpark without sparking up Excel

200 * 0.08 * 6.5 = 104

Obviously cannot take into account starting dates, 13 payments etc but easy enough to do on your phone calculator.

Exodi

[Deleted User] said:

BoGoF said:

[Deleted User] said:

BoGoF said:

[Deleted User] said:

BoGoF said:

What do you think it should be?

Give Nationwide a call

No need when the website says (estimate) £104.

Yes it does   However if websites Occam Investing, Nutmeg and the Calculator site are anything to go by the interest should be £323.19.

AI Captain...

Suggest you read the responses since and see why you are wrong and not comparing like for like

Yes of course   The others present no math to support either Nationwide or themselves. So what math is Nationwide using to arrive at the princely undersum of £104. What should smart savers do, believe everthing they read?

OK this confirms this thread is a wind up, raised with mods.

Officer_Dibble

I'd like to see the workings for the £323.19! On second thoughts, it might be better if we didn't.

BoGoF

[Deleted User] said:

BoGoF said:

[Deleted User] said:

BoGoF said:

[Deleted User] said:

BoGoF said:

What do you think it should be?

Give Nationwide a call

No need when the website says (estimate) £104.

Yes it does   However if websites Occam Investing, Nutmeg and the Calculator site are anything to go by the interest should be £323.19.

AI Captain...

Suggest you read the responses since and see why you are wrong and not comparing like for like

Yes of course   The others present no math to support either Nationwide or themselves. So what math is Nationwide using to arrive at the princely undersum of £104. What should smart savers do, believe everthing they read?

Well you are clearly not reading the responses as explanations have been given. 

zagfles

[Deleted User] said:

BoGoF said:

[Deleted User] said:

BoGoF said:

[Deleted User] said:

BoGoF said:

What do you think it should be?

Give Nationwide a call

No need when the website says (estimate) £104.

Yes it does   However if websites Occam Investing, Nutmeg and the Calculator site are anything to go by the interest should be £323.19.

AI Captain...

Suggest you read the responses since and see why you are wrong and not comparing like for like

Yes of course   The others present no math to support either Nationwide or themselves. So what math is Nationwide using to arrive at the princely undersum of £104. What should smart savers do, believe everthing they read?

The general approx formula for regular savers is monthly deposit * 6.5 * rate/100. Because the average balance over the year is 6.5 times the monthly deposit. That assume 12 deposits on the same date each month. It's approximate because of different month lengths, but will be fairly close.

But Nationwide are different in that they use calendar months for the deposit limit. That means you can open it today and pay in £200, then pay another £200 in tomorrow (because it's a new month) and on the 1st of every month till 1st Jan next year. Total of 13 payments, and you'd get about £120 interest.

In fact today is the best possible day to open this account! Because Feb is the shortest month so you get more in earlier.

BoGoF

Initial deposit £200 - gets 12 months interest at 8% p.a. = £16
Second £200 - gets 11 months interest at 8% = £14.67 (200*8%) x 11/12
Third £200 - gets 10 months interest at 8% = £13.34
Fourth £200 - gets 9 months interest at 8% = £12.00
Fifth £200 - gets 8 months interest at 8% = £10.67
Sixth £200 - gets 7 months interest at 8% = £9.34
Seventh £200 - gets 6 months interest at 8% = £8.00
Eighth £200 - gets 5 months interest at 8% = £6.67
Ninth £200 - gets 4 months interest at 8% = £5.34
Tenth £200 - gets 3 months interest at 8% = £4.00
Eleventh £200 - gets 3 months interest at 8% = £2.61
Twelfth £200 - gets 1 months interest at 8% = £1.34

Total £103.98.

That's as simple a way as I can explain it but for some they will never understand regular savers.

Middle_of_the_Road

Please close this thread, it's going nowhere!