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Easy access used as a regular saver
Bob2000
Posts: 425 Forumite
If l open a easy access account at say 4.5% but used it like a regular saver account say £100 per month.
Could l achieve the same interest gain as if l had a regular saver at 9%.
I don't think there is one at 9% mind.
Just a example.
Could l achieve the same interest gain as if l had a regular saver at 9%.
I don't think there is one at 9% mind.
Just a example.
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Comments
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You're maths is miles off.2
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If you put in £100 each month into any account, then by the end of the year you'll have deposited £1200 by the end, plus around 1200 * 4.5% / 2 = £27 interest. The halving is because in early months you don't have the full balance in the account, in fact on average you have 600 in the account at any time. To be more precise, if you deposit it at the start of each month then its an average balance of 650, plus compounding takes this to around £29.65 interest.Bob2000 said:If l open a easy access account at say 4.5% but used it like a regular saver account say £100 per month.
Could l achieve the same interest gain as if l had a regular saver at 9%.
I don't think there is one at 9% mind.
Just a example.
The label of 'regular saver' doesn't make a difference.
An easy access @ 4.5% would only match a 9% regular saver if you put the full £1200 balance in at the start.3 -
£100 month @ 4.5% will end up being the equivalent of £1200 @ 2.25% by the end of the year
£100 month @ 9% will end up being £1200 @4.5% at the end of the year1 -
Thank you all for replying l forgot to half the 4.5% in my easy access account.
Was too fixated on that 9%.
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Thank you for your explanation l appreciated it.saajan_12 said:
If you put in £100 each month into any account, then by the end of the year you'll have deposited £1200 by the end, plus around 1200 * 4.5% / 2 = £27 interest. The halving is because in early months you don't have the full balance in the account, in fact on average you have 600 in the account at any time. To be more precise, if you deposit it at the start of each month then its an average balance of 650, plus compounding takes this to around £29.65 interest.Bob2000 said:If l open a easy access account at say 4.5% but used it like a regular saver account say £100 per month.
Could l achieve the same interest gain as if l had a regular saver at 9%.
I don't think there is one at 9% mind.
Just a example.
The label of 'regular saver' doesn't make a difference.
An easy access @ 4.5% would only match a 9% regular saver if you put the full £1200 balance in at the start.0 -
Newbie error.Flugelhorn said:£100 month @ 4.5% will end up being the equivalent of £1200 @ 2.25% by the end of the year
£100 month @ 9% will end up being £1200 @4.5% at the end of the year1 -
Have a play with the MSE Regular Saver calculator https://www.moneysavingexpert.com/savings/regular-savings-calculator/
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Thanks for directing me to this.friolento said:Have a play with the MSE Regular Saver calculator https://www.moneysavingexpert.com/savings/regular-savings-calculator/0
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