Regular Savings Accounts Article Discussion

KTF

The monthly saver will convert to an esaver at a lower rate.


Then you will need to open a new monthly saver.

dekkard

Virgin seem to have only an in-branch Regular Saver and not one you can apply for online. The in-branch one offers 3%; hopefully they offer an online one again soon.

schiff

dekkard wrote: »

Virgin seem to have only an in-branch Regular Saver and not one you can apply for online. The in-branch one offers 3%; hopefully they offer an online one again soon.

I had to think about that!

OceanSound

KTF wrote: »

The formula I use to work out the max possible interest is:

=SUM(12*E10)*C10/12*6.5

In this case E10 is the max amount per month and C10 is the interest rate in %.

Replace the cell references with your own values and see if it is any closer.

Tried your formula with Nationwide Regular saver values.i.e.
Interest Rate: 5.0%
Maximum Monthly deposit: £250

Formula returned result of: 8125
Seems a bit on the high side.

verybigchris

OceanSound wrote: »

Tried your formula with Nationwide Regular saver values.i.e.
Interest Rate: 5.0%
Maximum Monthly deposit: £250

Formula returned result of: 8125
Seems a bit on the high side.

Sounds like you've put the interest rate in as "5" rather than "0.05". Actual result should be £81.25.


(BTW, the SUM in the original function does nothing; "SUM(12*E10)" could just be "12*E10")

Mr.Saver

verybigchris wrote: »

Sounds like you've put the interest rate in as "5" rather than "0.05". Actual result should be £81.25.


(BTW, the SUM in the original function does nothing; "SUM(12*E10)" could just be "12*E10")

£81.25 still sounds a bit high. Last year I only got £80.72 interest from the same 5% interest £250 per month regular saver.

OceanSound

Mr.Saver wrote: »

£81.25 still sounds a bit high. Last year I only got £80.72 interest from the same 5% interest £250 per month regular saver.

Did you make the £250 deposit on the 01st of each month?

chas49

OceanSound wrote: »

Did you make the £250 deposit on the 01st of each month?

Just looked at my NW Flex Regular Saver 2 to check the dates (payments due on 1st of month starting March. All except April and July on the 1st. Those two on the 2nd. But on both of those, the description includes (for example) "Credit 01 April 2018".

This suggests to me that the effective date for interest is fixed even if the transfer takes place early or late due to weekends/bank hols etc.

OceanSound

chas49 wrote: »

....This suggests to me that the effective date for interest is fixed even if the transfer takes place early or late due to weekends/bank hols etc.

This is what the Nationwide website says:

The estimated balance after 12 months based on 12 monthly deposits of £250 with an interest rate of 5.00% AER/ gross p.a. (variable) would be £3,081.25.
The estimated balances are for illustration only and assume that:
* each deposit is made on the first day of each calendar month
* no further deposits or withdrawals are made
* there is no change to the interest rate.

Are you sure that you opened account on 1st March and made deposit on 1st March?
What was the interest earned, higher,..lower than £81.25 (higher...lower...sounds like Brucie's play your cards right, doesn't it?)

...All except April and July on the 1st. Those two on the 2nd. But on both of those, the description includes (for example) "Credit 01 April 2018".

I've noticed halifax does this with my credit card payments. If the payment is made over the weekend, it appears on the account one or two days later (during weekday) but the date of transaction is the weekend date. I think the interest is calculated from the date of transaction (not date of posting).

Mr.Saver

OceanSound wrote: »

Did you make the £250 deposit on the 01st of each month?

No, I made the deposit every 30 days. (OK, in fact that's how HSBC's regular saver works, I didn't touch the SO settings)