We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
The New Top Easy Access Savings Discussion Area
Comments
-
Can someone enlighten me how on earth do we get from 5.84% gross to 6% aer in the Santander edge saver? The monthly interest paid does not accrue interest because it's over the 4k limit
0 -
AER is a made-up number with strict rules, that assume all interest compounds. - which the edge saver would do, if you didn't have so much in it.
Eco Miser
Saving money for well over half a century0 -
Same thing (sort of) with AER on 6 month savings accounts - how can you quote an ANNUAL rate for a product that is only running for half that term?
Answer's in the EQUIVALENT bit of AER.
1 -
Makes sense. So for all those 4k ers out there the interest rate is really 5.84 not 6
0 -
There's a maths problem. What's the maximum you could put in so for the whole year your interest is truly 6%
1 -
..or have a second Edge Saver to which you transfer the monthly interest from the first £4k Edge Saver, then I think the combined interest rate is 6%….until that one's full too.
1 -
How do you get a second Edge Saver please?
0 -
If someone has that then why not move some funds from one to the other so that you do not have to skim the interest each month?
1 -
Well since you're being serious, because both Edge savers are already full (earning 6% APR).
Open a second Edge current account (there may be cashback available). Do not set up DDs on this second account and it won't attract the monthly fee.
2 -
4000 / 1.06 = £3,773.58. Or perhaps slightly more - that gets you to £4,000 after 12 months, and I suppose that if you're at or under £4,000 after 11 months, you'll still get the full interest on the anniversary, but not after that.
The monthly factor by which your savings are multiplied by is (1 + .0584/12) = 1.004867. £3,791.99 would end up as £4,000.00 after 11 months.
1
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 355.2K Banking & Borrowing
- 254.7K Reduce Debt & Boost Income
- 455.8K Spending & Discounts
- 247.9K Work, Benefits & Business
- 605K Mortgages, Homes & Bills
- 178.8K Life & Family
- 262.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards