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  • FIRST POST
    • redandwhitestripes
    • By redandwhitestripes 12th May 18, 11:35 AM
    • 42Posts
    • 22Thanks
    redandwhitestripes
    Are regular savings accounts worth it ?
    • #1
    • 12th May 18, 11:35 AM
    Are regular savings accounts worth it ? 12th May 18 at 11:35 AM
    I wasn't too bad at maths in my younger days although things are catching up on me a bit but I was wondering whether those regular savings accounts are actually worth using.

    I may be missing the point a little bit , but I did some back of a beermat sums and worked out that the Chelsea 2% at up to 500 a month equates to around 1% over the 2 years.
    I have a charter Savings easy access account at 1.31% , so may as well use that.

    The best ones I've found are the First Direct and and Nationwide ones.
    The TSB, Santander ones don't really offer much, and I only keep the Lloyds one because I like getting a free Empire magazine each month!.

    Just wondered your thoughts.
Page 3
    • AirlieBird
    • By AirlieBird 15th May 18, 4:27 AM
    • 1,039 Posts
    • 850 Thanks
    AirlieBird
    so to go back to the start,
    their is not a lot of interest due

    Originally posted by No_6
    So to go back to post 37. There's more interest due than if you left it sitting in an easy access account.
    Did you really mean to put loose?
    Lose: no longer possess, not to retain, unable to find
    Loose: not firmly or tightly fixed in place
    • Jibeddy
    • By Jibeddy 15th May 18, 1:32 PM
    • 76 Posts
    • 40 Thanks
    Jibeddy
    the formula given by LXDaddy doesn't work though e.g. on M & S' Regular saver, 250 x 6.5 x 1.05 it works out as final balance of 1,706.25 and given that you put in 3,000 (250 x 12), it's obviously not right!

    Splitting hairs, but dividing by 100 doesn't really add in an extra step - OK so 5% and 0.05 are the same, but I've never seen a bank quote an interest rate of 0.05 - they say 5% - so you have to divide the 5 by 100 or the calculation does't work.
    Originally posted by beefturnmail
    No but in the literal sense 5% = 0.05

    If someone knows this but not how to work out the interest and comes across "divide the interest rate by 100" they could come up with 0.0005 in theory.
    • LXdaddy
    • By LXdaddy 15th May 18, 8:06 PM
    • 687 Posts
    • 421 Thanks
    LXdaddy
    the formula given by LXDaddy doesn't work though e.g. on M & S' Regular saver, 250 x 6.5 x 1.05 it works out as final balance of 1,706.25 and given that you put in 3,000 (250 x 12), it's obviously not right!

    Splitting hairs, but dividing by 100 doesn't really add in an extra step - OK so 5% and 0.05 are the same, but I've never seen a bank quote an interest rate of 0.05 - they say 5% - so you have to divide the 5 by 100 or the calculation does't work.
    Originally posted by beefturnmail
    You are quite right - the calculation give by me is wrong - sorry.

    What I SHOULD have said is that you can work out the interest due as
    monthly amount * 6.5 * interest rate

    So for the M&S regular saver example 250 per month at 5%
    250 * 6.5 * 5% = 81.25 interest earned
    0r
    250 * 6.5 * 0.05 = 81.25 interest earned

    Apologies for the error.
    • No_6
    • By No_6 16th May 18, 8:59 PM
    • 681 Posts
    • 139 Thanks
    No_6
    and we are still talking about a LOT of interest ?
    • beefturnmail
    • By beefturnmail 16th May 18, 9:14 PM
    • 743 Posts
    • 239 Thanks
    beefturnmail
    and we are still talking about a LOT of interest ?
    Originally posted by No_6
    Well how much is "a LOT"? To some people 1 is " a LOT"
    • No_6
    • By No_6 16th May 18, 9:33 PM
    • 681 Posts
    • 139 Thanks
    No_6
    If you only have one bank account and you open a reg.saver,
    then you are not making much on the interest.
    Better to open more accounts, that pay interest and manage them,
    then open more reg.savers

    Money into accounts and back out on the same day.

    You don't need big a income to run multiple accounts.
    just a descent spread sheet.
    • RG2015
    • By RG2015 16th May 18, 10:20 PM
    • 1,458 Posts
    • 913 Thanks
    RG2015
    You don't need big a income to run multiple accounts.
    just a descent spread sheet.
    Originally posted by No_6
    My spreadsheets are always falling down too.
    • EachPenny
    • By EachPenny 16th May 18, 11:00 PM
    • 8,017 Posts
    • 21,561 Thanks
    EachPenny
    My spreadsheets are always falling down too.
    Originally posted by RG2015
    I think No_6's spreadsheet is for tracking interest rate changes over time.
    "In the future, everyone will be rich for 15 minutes"
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