The New Top Easy Access Savings Discussion Area

Eco_Miser

https://forums.moneysavingexpert.com/discussion/comment/81964054#Comment_81964054

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.

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/81964094#Comment_81964094

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.

p1ston

https://forums.moneysavingexpert.com/discussion/comment/81964094#Comment_81964094

Makes sense. So for all those 4k ers out there the interest rate is really 5.84 not 6

p1ston

There's a maths problem. What's the maximum you could put in so for the whole year your interest is truly 6%

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/81964141#Comment_81964141

..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.

pecunianonolet

https://forums.moneysavingexpert.com/discussion/comment/81964233#Comment_81964233

How do you get a second Edge Saver please?

crumpet_man

https://forums.moneysavingexpert.com/discussion/comment/81964233#Comment_81964233

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?

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/81964261#Comment_81964261

Well since you're being serious, because both Edge savers are already full (earning 6% APR).

https://forums.moneysavingexpert.com/discussion/comment/81964242#Comment_81964242

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.

EthicsGradient

https://forums.moneysavingexpert.com/discussion/comment/81964144#Comment_81964144

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.

crumpet_man

https://forums.moneysavingexpert.com/discussion/comment/81964283#Comment_81964283

You said "have a second Edge Saver to which you transfer the monthly interest from the first £4k Edge Saver"

If the second Edge saver is already full you wouldn't do that. If the second Edge saver isn't full, you would split the funds between the two in order to avoid having to transfer the interest.

I acknowledge I am being pedantic.