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Easy access used as a regular saver

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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. 

Comments

  • penners324
    penners324 Posts: 3,511 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    You're maths is miles off.
  • saajan_12
    saajan_12 Posts: 5,014 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    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. 
    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. 

    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. 
  • Flugelhorn
    Flugelhorn Posts: 7,296 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    £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 year
  • Bob2000
    Bob2000 Posts: 299 Forumite
    100 Posts Name Dropper Photogenic
    edited 7 November 2024 at 5:11PM
    Thank you all for replying  l forgot to half the 4.5% in my easy access account. 
    Was too fixated  on that 9%.
     :# 
  • Bob2000
    Bob2000 Posts: 299 Forumite
    100 Posts Name Dropper Photogenic
    saajan_12 said:
    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. 
    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. 

    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. 
    Thank you for your explanation l appreciated  it.
  • Bob2000
    Bob2000 Posts: 299 Forumite
    100 Posts Name Dropper Photogenic
    £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 year
    Newbie error. 
  • friolento
    friolento Posts: 2,373 Forumite
    1,000 Posts Second Anniversary Name Dropper Photogenic
    Have a play with the MSE Regular Saver calculator https://www.moneysavingexpert.com/savings/regular-savings-calculator/

  • Bob2000
    Bob2000 Posts: 299 Forumite
    100 Posts Name Dropper Photogenic
    friolento said:
    Have a play with the MSE Regular Saver calculator https://www.moneysavingexpert.com/savings/regular-savings-calculator/

    Thanks for directing me to this.
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