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The Top Regular Savers Discussion Thread
Comments
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Quite. But @seriously 's account was already opened on the 25th. Waiting to fund on the 1st is going to result in less interest. That's what I was getting at.
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You can fund now, 1st July or any other date, but the maximum you can deposit is £200 per account month. For example, you can deposit £100 today and £100 on 1st July. You can deposit £1 daily or not deposit at all. I fully funded the account on the day of opening to take full advantage of 8%. I don't mind making deposits outside the 1st of the month schedule, it's only three - FD, Zopa and Santander - all others work on calendar month basis.
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Haha glad to know it's not just me…let's blame the heat:)
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Coventry and HSBC also have RS accounts like that.
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True. I forgot about them. Haven't used HSBC and Coventry RSs for a while. They don't have any attractive RS offers at the moment.
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Anyone with a more mathematical brain than me capable of working out the difference in interest between a 22nd June 22nd July etc payment schedule and a 22nd June 1st August etc payment schedule.
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You're effectively replacing 9 and a halfish days at the maximum balance with the same number of days at the minimum balance, so for a Santander 8% account funded at £200 per month, that's £2200 * 9.5/365 * 0.08 = £4.50.
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£4.50 before any tax that might be due 😉
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I agree with masonic's rough calculation. Although that assumes that the money would be earning no interest for those 9 days, whereas you're likely to have it in an easy access account earning a lower rate of interest, so your loss will be less than £4.50.
Decide for yourself whether it's worth the hassle of doing some extra RS admin on another day of the month in return for £4.50 interest. Having to fund it via your Santander current account makes it a bit more of a bother as you can't just set up a standing order direct to the RS. For me, it's not too bad because it aligns nicely with my First Direct and Zopa accounts, so I'll probably fund all of them on the 24th (only losing a couple of days interest) and fund everything else on the 1st.
Another thing to consider is whether you have the funds available on the 22nd (i.e. sitting in a lower-paying easy access account). If you do, then the best strategy is to fund it on the 22nd each month. If like me your salary lands on the last working day of the month then you might not be able to fund until the 1st of the month anyway.
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I must say I'm pretty amazed it's as much as £4.50 which says a lot about how my brain isn't especially mathatical. That said, the lowest interest rate I leave money sitting at is 5.25% so I'm guessing we'd be looking in reality at a loss after basic rate tax of about £1. to avoid the hassle of breaking the routine of the 1st of the month standing orders I may stick with the 1st therefore .
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