Redcliffe

Redcliffe_2

I understand Barclays are to open a new Regular Saver paying 7.75% on max payments of £250pm.Being a non tax payer what return will I receive after one year and is this the one for me. Thank you.

debbie42

Just roughly:
12*250*0.075*2 = £112.5

If you put £250 away p.m.

Redcliffe_2

Hi Debbie, Thank you for your response.Your figures suggest a lump sum account would return more.Redcliffe.

Lokolo

debbie42 wrote: »

Just roughly:
12*250*0.075*2 = £112.5

If you put £250 away p.m.

You meant /2... ;-)

LittleVoice

Redcliffe wrote: »

Hi Debbie, Thank you for your response.Your figures suggest a lump sum account would return more.Redcliffe.

If you have a lump sum available at the start, you need to add in the interest you would receive on that too pending its transfer to the regular saver.

Milarky

The 'exact' figure is 6.5* x 250 x 0.075/12 = 125.94

*the average balance of any account with 12 equal payments is 6.5/12ths of the total amount paid in and 6.5/12ths of £3000 is £1625 [£1500 + £125] and so the interest is simply 7.75% of £1625 rather than £3000

debbie42

Lokolo wrote: »

You meant /2... ;-)

Certainly did. At least the end figure was ok, so I did the calculation right, if not the typing