Nottingham BS FIXED RATE SAVINGS Issue 53 7.10%

skoolmaster

Nottingham BS
FIXED RATE SAVINGS Issue 53 launched w.e.f. 17.6.08: a fixed term postal account maturing 1.7.09 with a minimum investment of £1K paying 7.10% yearly. No earlier access permitted. Further additions allowed whilst issue remains open.
17 Jun 2008

tomthered

Is this better than the Halifaxs 10% deal as its a lump sum up front. on 1000 invested you would get £71. Therefore £6000 over 1 year is £426 gross or £340.8 net of 20% tax. Same deal from halifax only has £260 approx interest due to payments made monthly. Can anyone advise please?

Baldur

tomthered wrote: »

Is this better than the Halifaxs 10% deal as its a lump sum up front. on 1000 invested you would get £71. Therefore £6000 over 1 year is £426 gross or £340.8 net of 20% tax. Same deal from halifax only has £260 approx interest due to payments made monthly. Can anyone advise please?

Whether it's better or not depends on your circumstances - if you have a lump sum available, then it's obviously, by your own calculations, going to give you more interest than the regular saver.

Most people appear to drip feed into regular saver accounts from linked high interest easy access accounts, thereby receiving interest from both accounts.

thumshie

If you read the halifax 10% thread theres plenty of examples showing interest from feeder accounts and the average return over the 12 months.. As stated if you have 6k lump sum you may be better of combining a 6.51% feeder account(B&B?) with the regular saver but probably only by a few £

The best solution is if you can afford to save £500 from your monthly income-assuming you have some - put the lump sum in this account and feed the regular saver solely from income.. OR put this lump sum in the halifax to earn the 12% on the regular saver, but thats another question.....;)