Savings interest rate thread

[egor110]

Gas1883 said:

Opened a nationwide savings account , 8 % , but can only deposit £200 p/m ( or that’s all I can )

Because it's a regular saver account where they limit the max you can put in per month.

[981Boxess]

Reliance bank 1 year FRB - 5.50%

[Mr Whippy]

BofE cut rates in 1929 from ~6% to ~3%, we all know 1929 was a bad crash but it was many steps down, and rates were back at ~6% by 1931.

We’re seeing the same problems here.

1972 to 1983 had ups and downs in both inflation and interest rates too.


To think all this can be smoothly controlled and corrected and softly landed when historically (even just two years ago when this was all transitory nonsense) central banks don’t have a clue.


I suspect some great rates will be available in 2024 as bond rates rise in response to UK gov borrowing money for fun to stimulate our economy out of the mess it’s in (while keeping rates high to fight inflation )

[asfault]

Gas1883 said:

Opened a nationwide savings account , 8 % , but can only deposit £200 p/m ( or that’s all I can )

Is it paid minth or at the end.
Doesn't it end up as similar to 4% by the end of the year overall?

[Funk]

asfault said:

Gas1883 said:

Opened a nationwide savings account , 8 % , but can only deposit £200 p/m ( or that’s all I can )

Is it paid minth or at the end.
Doesn't it end up as similar to 4% by the end of the year overall?

"We work out your interest daily. This is then paid into your account on the anniversary of your account opening."

So yes, you're right - it works out at 4.33%...

Edited by Funk on Thursday 28th December 15:47

[ferret50]

Funk said:

asfault said:

Gas1883 said:

Opened a nationwide savings account , 8 % , but can only deposit £200 p/m ( or that’s all I can )

Is it paid minth or at the end.
Doesn't it end up as similar to 4% by the end of the year overall?

"We work out your interest daily. This is then paid into your account on the anniversary of your account opening."

So yes, you're right - it works out at 4.33%...

Edited by Funk on Thursday 28th December 15:47

But you do get £200 for switching to them.....

[markiii]

Funk said:

asfault said:

Gas1883 said:

Opened a nationwide savings account , 8 % , but can only deposit £200 p/m ( or that’s all I can )

Is it paid minth or at the end.
Doesn't it end up as similar to 4% by the end of the year overall?

"We work out your interest daily. This is then paid into your account on the anniversary of your account opening."

So yes, you're right - it works out at 4.33%...

Edited by Funk on Thursday 28th December 15:47

this is true but unless the cash your paying in was stored under teh mattress its getting interest elsewhere. So you might as well move it and get teh 8% on the £200. So its still an improvement

[spikyone]

Funk said:

asfault said:

Gas1883 said:

Opened a nationwide savings account , 8 % , but can only deposit £200 p/m ( or that’s all I can )

Is it paid minth or at the end.
Doesn't it end up as similar to 4% by the end of the year overall?

"We work out your interest daily. This is then paid into your account on the anniversary of your account opening."

So yes, you're right - it works out at 4.33%...

Edited by Funk on Thursday 28th December 15:47

Except he's really not right. You'll get 4.33% on your total balance at the end of the year, but then most of that money won't have been in there for a full year. It's no different from any other savings account in that regard, and if you put that money into the highest interest easy access account at £200 every month for a year, you won't get the 5%(ish) that they currently pay on the total balance.

The interest rate is 8% pa, you've just misunderstood how savings interest works, on all types of account.

[paulguitar]

spikyone said:

Funk said:

asfault said:

Gas1883 said:

Opened a nationwide savings account , 8 % , but can only deposit £200 p/m ( or that’s all I can )

Is it paid minth or at the end.
Doesn't it end up as similar to 4% by the end of the year overall?

"We work out your interest daily. This is then paid into your account on the anniversary of your account opening."

So yes, you're right - it works out at 4.33%...

Edited by Funk on Thursday 28th December 15:47

Except he's really not right. You'll get 4.33% on your total balance at the end of the year, but then most of that money won't have been in there for a full year. It's no different from any other savings account in that regard, and if you put that money into the highest interest easy access account at £200 every month for a year, you won't get the 5%(ish) that they currently pay on the total balance.

The interest rate is 8% pa, you've just misunderstood how savings interest works, on all types of account.

So would I be better off keeping the money in Tandem at 5% rather than doing the Nationwide account?

[markiii]

if you leave it in tandem but move £200 per month to nationwide. it will be best

[paulguitar]

markiii said:

if you leave it in tandem but move £200 per month to nationwide. it will be best

Thanks, that's what I intended to do. I've set up the NW account and transferred the first £200.

[OldSkoolRS]

paulguitar said:

markiii said:

if you leave it in tandem but move £200 per month to nationwide. it will be best

Thanks, that's what I intended to do. I've set up the NW account and transferred the first £200.

Not sure if on this thread or another in the finance section, but I saw a table that showed the differences. For £200 a month it wasn't a huge amount more than just leaving it in a higher rate savings account though. I see these regular savings accounts as more useful if you have excess income that you want to put away each month, then transfer (maybe to an ISA or whatever) at the end of the year. The sums for taking it out of savings didn't seem worth the bother to me.

[Jawls]

OldSkoolRS said:

paulguitar said:

markiii said:

if you leave it in tandem but move £200 per month to nationwide. it will be best

Thanks, that's what I intended to do. I've set up the NW account and transferred the first £200.

Not sure if on this thread or another in the finance section, but I saw a table that showed the differences. For £200 a month it wasn't a huge amount more than just leaving it in a higher rate savings account though. I see these regular savings accounts as more useful if you have excess income that you want to put away each month, then transfer (maybe to an ISA or whatever) at the end of the year. The sums for taking it out of savings didn't seem worth the bother to me.

Vs a 5% savings account, you’re talking a marginal win of approx £36.

£36 for a handful of clicks? That’s good value to me. £36 is a decent steak out (though you’d have to find money elsewhere for your drink!)

[OldSkoolRS]

Jawls said:

Vs a 5% savings account, you’re talking a marginal win of approx £36.

£36 for a handful of clicks? That’s good value to me. £36 is a decent steak out (though you’d have to find money elsewhere for your drink!)

I suppose, though in reality it's more than 'a handful of clicks' as you'd need to set up the bank account which sometimes can be a bit of hassle. Not sure if I could set up a monthly transfer from my savings account either, so that part might have to be manual in my case. We used to go to a Sri Lanka restaurant and typically our meal would be about £36 including soft drinks, so maybe worth the effort I guess.

I've ended up with so many different accounts through following this thread over the last 18 months or so. I'm still benefiting from the Santander 5.2% one at the moment, though I do wonder how long before they reduce the rate. I have at least got some high 5% FRBs thanks to this thread too.

[981Boxess]

OldSkoolRS said:

I've ended up with so many different accounts through following this thread over the last 18 months or so. I'm still benefiting from the Santander 5.2% one at the moment, though I do wonder how long before they reduce the rate. I have at least got some high 5% FRBs thanks to this thread too.

Same here, far too many to admit to on a public forum

Santander and CBS are my last two standing at 5.2% but as you say probably for not much longer, I am also sorted with FRBs now so they can do what they like now.

[Drew106]

paulguitar said:

spikyone said:

Funk said:

asfault said:

Gas1883 said:

Opened a nationwide savings account , 8 % , but can only deposit £200 p/m ( or that’s all I can )

Is it paid minth or at the end.
Doesn't it end up as similar to 4% by the end of the year overall?

"We work out your interest daily. This is then paid into your account on the anniversary of your account opening."

So yes, you're right - it works out at 4.33%...

Edited by Funk on Thursday 28th December 15:47

Except he's really not right. You'll get 4.33% on your total balance at the end of the year, but then most of that money won't have been in there for a full year. It's no different from any other savings account in that regard, and if you put that money into the highest interest easy access account at £200 every month for a year, you won't get the 5%(ish) that they currently pay on the total balance.

The interest rate is 8% pa, you've just misunderstood how savings interest works, on all types of account.

So would I be better off keeping the money in Tandem at 5% rather than doing the Nationwide account?

No, you're better off doing a combination of both, if you're looking to max interest earned. But there's not a huge amount of difference in the overall given you're limited to putting in a fixed amount.

You've either got the £200 sitting in the Tandem earning 5% or the Nationwide earing 8% in any given month.

Presuming you have £2400 at the start of the year and don't save any extra. If you just hold it in a 5% account you earn £120 interest.

If you drip fed £200/month into an 8% regular saver, you'd earn £146 (£55 from Tandem and £91 from Nationwide).

*back of fag packet workings.

[anonymous-user]

The cash borrowing rate on my credit card has gone down from 5% to a 4.5% fee over 12 months.

I suspect savings rates will also start to fall over the next month or two.

[981Boxess]

Joey Deacon said:

The cash borrowing rate on my credit card has gone down from 5% to a 4.5% fee over 12 months.

I suspect savings rates will also start to fall over the next month or two.

That started happening in August/September, the FRB rates have been dropping for some time now.

[Teatowell]

981Boxess said:

That started happening in August/September, the FRB rates have been dropping for some time now.

Variable would have likely started dropping more as well had it not been for Metro/Ulster.

[NRG1976]

Teatowell said:

981Boxess said:

That started happening in August/September, the FRB rates have been dropping for some time now.

Variable would have likely started dropping more as well had it not been for Metro/Ulster.

Variable rates not dropping has nothing to do with metros/Ulster.