Where will I make more interest?

jameseonline

Regular Savings accounts pay the best on smaller amounts of money, so £250 max deposit on Virgin's 10% per month for example.

As for Virgin Money do you already have a current account with them?, if not you need 1 I think.

You can also hold other regular savings accounts with other providers if you have the funds so co op at 7% on £250 a month.

https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/

You'll see a decent list of Regulars there.

Then a decent list of other savings accounts here:

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

To note are the Cahoot (Santander owned) Sunny Day & Santander Edge Saver (you need Edge current account 1st), Cahoot has a £3000 total limit you can get interest on, Santander £4000 total limit you can earn interest on, both pay monthly.

I think it might be worth looking at your options savings wise, particularly if you have any ending soon.

steven141

There’s also Club Lloyds 6.25% regular saver for Club Lloyds current account customers and Royal Bank of Scotland/NatWest digital regular saver 6.17% and First Direct do 7% also co-operative bank do 7% as well I think. It’s worth splitting your money across them as much as you can. 

jameseonline

The Virgin Money Regular ends for new applicants on Friday (see regular savings thread)

mademe

I've applied for a 7% with Skipton as I'm already a customer. Is it worth reapplying with Virgin after they refused me? It was only a couple of weeks ago.

mademe

Skipton is fixed for a year but maximum £250 per month. I was hoping to open a Virgin savings as I could put all my savings in there but they refused my application for a current account.

surreysaver

MikeJXE said:

mademe said:

I currently have 3 savings accounts:
1 at 5.25% opened in Nov last year but I can only deposit £400 per month, interest paid annually
1 at 8% opened in Nov last year but I can only deposit £200 per month, interest paid annually
1 at 3.93% opened and I can make unlimited deposits, interest paid monthly

I work part time due as I have small children and save what I can - usually I can pay the £400 and the £200 and then any extra goes into the 3.93% account. I currently have nearly £3000 in this account.

I'm getting very confused as to whether it makes sense to do as I am now by paying the full maximum deposits in the higher accounts, or whether to just put all of my money from the different accounts and future savings in the 3.93%? I really don't understand how to work out the maths, or is it just the case that the higher interest accounts are better, even though you have a maximum amount you can pay in?

Is there an easy-ish way to work out what the interest would be? I know it won't be much anyway but it will make a difference and with my limited savings I would like to make the most interest as possible! Thank you

Calculating 1 and 2, if you pay in for exactly 12 months you will earn half whats stated 

at 3 you will earn 3.93% of the total amount over the same period 

No, that's not correct. You earn what's stated. What confuses people is, you earn what's stated on about half the final total, as that's approximately what's held on average in the account during the year.
The stated interest rate is what's paid

MikeJXE

A twisting of words make no difference to the outcome 

jameseonline

mademe said:

Skipton is fixed for a year but maximum £250 per month. I was hoping to open a Virgin savings as I could put all my savings in there but they refused my application for a current account.

Do you have any idea why Virgin Money refused you for a current account?.

Maybe give them a call?.

I think it might be a bit late to get things setup Virgin wise but you could still try with them, failing that try other providers.

etienneg

MikeJXE said:

A twisting of words make no difference to the outcome 

It's not a twisting of words - it's a fundamental difference.

If you can find ANY account that pays interest on money that's not yet in the account, please let me know. That's what you are doing by calculating the interest on the final balance.

It would be great to open an account, keep it for 364 days with zero (or a low) balance, then fund it with a large amount and 1 day later expect a whole year's interest on the final balance that's been in the account for just 1 day.

Please learn how to calculate interest before criticizing others.

saajan_12

MikeJXE said:

mademe said:

I currently have 3 savings accounts:
1 at 5.25% opened in Nov last year but I can only deposit £400 per month, interest paid annually
1 at 8% opened in Nov last year but I can only deposit £200 per month, interest paid annually
1 at 3.93% opened and I can make unlimited deposits, interest paid monthly

I work part time due as I have small children and save what I can - usually I can pay the £400 and the £200 and then any extra goes into the 3.93% account. I currently have nearly £3000 in this account.

I'm getting very confused as to whether it makes sense to do as I am now by paying the full maximum deposits in the higher accounts, or whether to just put all of my money from the different accounts and future savings in the 3.93%? I really don't understand how to work out the maths, or is it just the case that the higher interest accounts are better, even though you have a maximum amount you can pay in?

Is there an easy-ish way to work out what the interest would be? I know it won't be much anyway but it will make a difference and with my limited savings I would like to make the most interest as possible! Thank you

Calculating 1 and 2, if you pay in for exactly 12 months you will earn half whats stated 

at 3 you will earn 3.93% of the total amount over the same period 

MikeJXE said:

A twisting of words make no difference to the outcome 

Well the outcome isn't just the £ interest in that account. It also matters how long the money needs to be in that account in order to earn that interest. For the time that parts of the money doesn't need to be in the account, it could be in another easy access savings account, which increases the total interest. 

Eg for the 8% on £400 / month account, with a total £4800 deposited, then  at the end of the year you'll have ~£208 interest. If you think of that as 8% / 2 ie 4% x 4800 then you can't compare properly. A 4% account where you put in £4800 at the start also pays about the same, but you needed to have the money upfront, whereas the 8% regular saver could have drawn money from another easy access account that was paying some additional interest.