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  • mcspanna
    Dear Moneysavers,

    Firstly, please be gentle, this is my first post on these boards and I think I'm adding it to the right section but I'm not sure! I have recently set up a Halifax 10% regular saver (I'm basic rate tax payer so 8% actual). I was reading on here somewhere last night some messages from people working out the actual interest and I'd like someone to confirm my maths!

    By my calculations you get 0.66(recurring)% interest per month and therefore it is only worth paying in the full 500 for the first 5 months and then knocking the monthly payment down to the 25 minimum because from that point on I can get more interest in Bradford and Bingley (6.51% before tax) or Kaupthing Egde 6.5%?)

    Is this correct?

    I did try to follow other people's maths as printed in other messages but found it too confusing!

    Any advice greatfully received!

    Thanks,

    Mcspanna
    • YorkshireBoy
    • By YorkshireBoy 12th Jul 08, 12:51 PM
    • 30,525 Posts
    • 18,470 Thanks
    YorkshireBoy
    Is this correct?
    Originally posted by mcspanna
    No.

    Interest accrues daily...on your closing balance each day.

    So, your choice is (fairly) simple...do you put money in an account paying 10%, or do you put it in an account paying 6.5%?

    It's an easy choice really isn't it (providing of course you don't need access to the money before the regular saver matures)?
  • LongTermLurker
    By my calculations you get 0.66(recurring)% interest per month and therefore it is only worth paying in the full £500 for the first 5 months and then knocking the monthly payment down to the £25 minimum because from that point on I can get more interest in Bradford and Bingley (6.51% before tax) or Kaupthing Egde 6.5%?)

    Is this correct?
    Originally posted by mcspanna
    No, I don't think that's right - both accounts put you in the same position so the 10% account still wins.

    Each month, whichever one you have, you get x%/12 (or more precisely, every day you get x%/365) - that's the same with both accounts so in the last 7 months you still benefit at the 10% rate. If you moved it to KE you would just get 7 months at 6.5% instead of another 7 months at 10%
    You've never seen me, but I've been here all along - watching and learning...
    • benwrigley
    • By benwrigley 15th Jul 08, 9:26 AM
    • 12 Posts
    • 0 Thanks
    benwrigley
    Regular Saver vs Mortgage payments
    I currently have a 4.75% fixed rate interest only mortage with First Direct that I am I also paying off month by month.

    I'm thinking about opening a 10% regular saver with Halifax and making the maximum deposit each month rather than repaying my mortgage.

    It seems obvious to me that I'd be better off with the savings account but is there a utility for comparing savings and mortgages?

    I am, of course, aware that one major difference between the two is that I pay tax on the savings.

    Thanks in advance.
  • kaligand
    Halifax 10 % offer
    Am I missing something. If you paid 500 each month into your Halifax Regular Saver, over 12 months you would save 6000 in total.At a guaranteed 10.00% AER this means you'd earn 260 (after basic rate of tax) in interest during the 12 months.
    But if you already have 6000 in an account earning 6%, thats 360 or 281 after basic rate of tax.
    So its OK if you want to start new savings but no good to move existing savings.

    In fact maybe the savings are marginal even for new savings as it is only max 6000. Sometimes this site wastes time.
    • JamieB
    • By JamieB 16th Jul 08, 11:15 AM
    • 29 Posts
    • 16 Thanks
    JamieB
    kaligand, if you already have 6000 in a savings account paying 6%, then the best thing to do is keep that money in there, transferring 500/mo into the regular saver paying 10%. That way you earn 390 interest (after basic tax), 133 from the 6% savings account and 257 from the regular saver. (See here: http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#savingscalc).

    That way you are maximising the amount of interest your money is earning at any given point in time.
  • stumck
    It may be too late to get the 10% regular saver account on line as there is up to 7 days for the on line registration to go through and a password, etc., to be provided! I tried to get an account yesterday and am still waiting for the details of my account to be able to deposit the money in time !
  • notalk
    Bank of Ireland Regular Savings Account - 10% AER
    This tip applies to you if you are a Bank of Ireland current account holder in Wales, Scotland or England or if you are interested in a regular saver bank account offering 9.57% gross/10% AER.

    I found out today that the Bank of Ireland have a new High Interest Regular Saver Account available to their customers in Northern Ireland which offers this amount of interest if you pay in at least 1,000 per month, and then are prepared to save between 25 and 250 per month by standing order. The interest rate only applies as long as you save the monthly sum.

    Full details are available by tapping in the Regular Saver account page at www.bankofireland.co.uk and ringing the freephone number advertised there.

    As an existing account holder in Wales, I simply asked them to activate this, and they agreed, confirming that I won't have to change my existing account name, number or branch.

    I've been a customer of the Bank for 25 years and find them to be very good - the lack of a branch network "on the mainland" isn't too big a problem.

    I don't work for them and I'm not an Independent Financial Advisor!!
  • LongTermLurker
    I found out today that the Bank of Ireland have a new High Interest Regular Saver Account available to their customers in Northern Ireland which offers this amount of interest if you pay in at least £1,000 per month, and then are prepared to save between £25 and £250 per month by standing order. The interest rate only applies as long as you save the monthly sum.
    Originally posted by notalk
    Just to clarify notalk's statement, you have to open a current account and pay £1000pm into that, and are then eligible to open a linked RS account at 10% - a bit like the A&L offering.

    Full details at http://www.bankofireland.co.uk/personal-banking/savings-and-investments/regular-saver-accounts/

    This new account is available when you open a clear Current Account with us and use it to pay in your main monthly salary of at least £1,000.
    • Earn 9.57% gross1/10% AER2
    • Rate guaranteed fixed for 1 year
    • Save a fixed amount between £20 and £250 per month by standing order from your clear current account
    • Interest paid monthly
    • No withdrawals are allowed
    Important If, for any reason, you stop making the minimum payment to your current account or you stop making standing order payments to the High Interest Regular Saver Account or you pay more than £250 in any month, the rate we will pay from that time will be reduced to the rate paid on our Demand Deposit account for the remainder of the term.
    Looks like a good account if you want a linked current account.

    edit - I've posted this on SS2's thread and credited notalk
    Last edited by LongTermLurker; 17-07-2008 at 7:12 PM.
    You've never seen me, but I've been here all along - watching and learning...
  • moneysavermick
    International Reg Saver
    hi all new to this... i just though i would let money savers know halifax do an international reg savings account where your able to save up to 2000 each month but again the offer closes on the sunday.
    http://www.halifax-international.com/Savings/regular-saver.asp is where you find you more info.... hope this is of use to anyone!!!!!!!!!!!!
    • Paul_Herring
    • By Paul_Herring 18th Jul 08, 1:31 AM
    • 6,691 Posts
    • 3,342 Thanks
    Paul_Herring
    Just to clarify notalk's statement, you have to open a current account ...
    Originally posted by LongTermLurker
    I cannot find any details on the interest rate (if indeed there is interest paid) on these accounts.

    From the T&C's:
    When you become a customer we will give you information on the interest rates that will apply to your account and when we will take it from or pay it to you. You can get information on the most up-to-date interest rates by contacting your branch or on our website.

    For accounts held in Great Britain:
    www.bank-of-ireland.co.uk
    Leads me to http://www.bank-of-ireland.co.uk/about/rates.html which makes no mention of the current accounts in the rates PDF.
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • notalk
    Bank of Ireland Regular Savings account
    The BoI website with the hyphens - www.bank-of-ireland.co.uk is the one intended for customers in England, Wales and Scotland, and doesn't offer the Regular Savings account.

    But the website without the hyphens, quoted by Long Term Lurker and myself - www.bankofireland.co.uk - is the Northern Ireland site which offers the 10% Regular Savers account. You don't have to live in Norn Iron to benefit from this account, which is why I've signed up to it.

    I'm not sure why the BoI aren't advertising it in England, Wales and Scotland.
  • LongTermLurker
    The BoI website with the hyphens - www.bank-of-ireland.co.uk is the one intended for customers in England, Wales and Scotland, and doesn't offer the Regular Savings account.

    But the website without the hyphens, quoted by Long Term Lurker and myself - www.bankofireland.co.uk - is the Northern Ireland site which offers the 10% Regular Savers account. You don't have to live in Norn Iron to benefit from this account, which is why I've signed up to it.

    I'm not sure why the BoI aren't advertising it in England, Wales and Scotland.
    Originally posted by notalk
    I'd missed that point totally - why on earth should they have a localised website? We're all park of the United Kingdom. I suspect they've just registered the two domains and have interlinked them, rather than intending them to be localised.
    Leads me to http://www.bank-of-ireland.co.uk/about/rates.html which makes no mention of the current accounts in the rates PDF.
    Not sure whether the interest rates page I looked at had hyphens or not; basically, I followed notalk's link, went through the info and clicked a rates link. As you say Paul, there's no mention of rates for that lower Demand Deposit account either - not overly transparent. Still a potentially good account though.
    You've never seen me, but I've been here all along - watching and learning...
    • Paul_Herring
    • By Paul_Herring 18th Jul 08, 10:42 AM
    • 6,691 Posts
    • 3,342 Thanks
    Paul_Herring
    We're all park of the United Kingdom.
    Originally posted by LongTermLurker
    When did Ireland join the UK? (You're either thinking of Northern Ireland, or Europe )
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
    • Paul_Herring
    • By Paul_Herring 18th Jul 08, 10:48 AM
    • 6,691 Posts
    • 3,342 Thanks
    Paul_Herring
    OK, I went hunting on the 'local' site:

    http://www.bankofireland.co.uk/bank-of-ireland-group/rates-and-fees/4/

    There is no interest paid on credit balances unless you're on Clear Account - Level 3 (sounds like something from Scientology... ;/ It's the 'level' you're on if you pay in less than £500 per month) and even then it's a whopping 0.1%

    So after paying in your £1000 'wages' to this bank, you need to get it moved sharpish out again.
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
    • langlauf
    • By langlauf 18th Jul 08, 11:02 AM
    • 2 Posts
    • 0 Thanks
    langlauf
    Halifax Regular Saver @ 10%
    I have recently opened a Halifax Regular Saver account and was told that you couldn't open a Guaranteed Saver Reward account to bump up the 10% to 12% You can choose from other accounts to bump up the 10% to 12% such as the Guaranteed Saver account which pays 5%AER and not the 6.25%AER quoted in the Money Saving website article.
    Please reply if you feel that I have been given the wrong info but if you look at the Halifax website I think you'll find that what I am saying is accurate.
  • sloughflint
    I have recently opened a Halifax Regular Saver account and was told that you couldn't open a Guaranteed Saver Reward account to bump up the 10% to 12% You can choose from other accounts to bump up the 10% to 12% such as the Guaranteed Saver account which pays 5%AER and not the 6.25%AER quoted in the Money Saving website article.
    Please reply if you feel that I have been given the wrong info but if you look at the Halifax website I think you'll find that what I am saying is accurate.
    Originally posted by langlauf
    Incorrect.
    The account is a qualifying account for the RS to boost to 12%.
    The 'reward' account is merely a guaranteed saver which earns a greater rate if opened before 10th August, the withdrawals restrictions are followed and minimum balance maintained ( £2500 for the 6.25%,£5000 for the 12% on RS).
    As long as no more than one withdrawal, the account will earn 6.25%
    Last edited by sloughflint; 18-07-2008 at 12:42 PM.
  • Kellm9
    Better qualifying account at Bank of Scotland to get 12%
    Hi,

    I opened a Halifax regular saver account yesterday in branch.

    From MSE I went armed with the account I needed to boost from 10% to 12%, namely the Guaranteed saver.

    At my "interview" I successfully opened the Regular saver but when I said I wanted the Guaranteed saver to get the extra 2% they suggested an alternative paying a higher rate and allowing upto 4 withdrawls per year. It was the Bank Of Scotland Instant AccessSavings account. Now I queried this and they said it was definately acceptable as a qualifying nominated account and it pays 6.5%.

    When I got home I was a little concerned that I might have been given wrong advice so I called the Halifax online savings number. They said the Bank Of Scotland account definately qualifies and gave me a reference for my records. I asked why it was not on the website and she said they can only put Halifax accounts on the Halifax website and ditto for BOS. However in branch they can swap and change since it is the same bank. Hope this makes sense and helps someone get a higher rate although it's getting late now.

    Cheers Kellm9
    Last edited by Kellm9; 18-07-2008 at 12:47 PM.
    • YorkshireBoy
    • By YorkshireBoy 18th Jul 08, 1:00 PM
    • 30,525 Posts
    • 18,470 Thanks
    YorkshireBoy
    ...she said they can only put Halifax accounts on the Halifax website and ditto for BOS.
    Originally posted by Kellm9
    Not strictly true. There are several Halifax accounts listed on the BoS personal banking website here...

    http://www.bankofscotlandhalifax.co.uk/savings/savingsatglance.asp

    ...and on that site, the IASAR *is* listed as a qualifying account.

    I'd be getting what they 'said' in writing though, just so you have something to help you chase the missing 2% next year, should you need to.
    Last edited by YorkshireBoy; 18-07-2008 at 1:05 PM.
  • LongTermLurker
    When did Ireland join the UK? (You're either thinking of Northern Ireland, or Europe )
    Originally posted by Paul_Herring
    OP was talking of Northern Ireland wasn't he?

    Great Britain = England, Scotland & Wales.
    The "United Kingdom of Great Britain and Northern Ireland" to give it it's full name was a later addition.

    edit:
    But the website without the hyphens, quoted by Long Term Lurker and myself - www.bankofireland.co.uk - is the Northern Ireland site
    Yup, I was right!

    edit 2 - and if it was Eire he was talking about, the domain would have a .ie suffix, not .co.uk (not always necessarily true, but I would expect banks to register in the intended country of business)
    Last edited by LongTermLurker; 18-07-2008 at 2:52 PM.
    You've never seen me, but I've been here all along - watching and learning...
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