Savings interest rate thread

[Teatowell]

NRG1976 said:

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

Metro will drop mid month, watch rates trickle down when they do.

[NRG1976]

Teatowell said:

NRG1976 said:

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

Metro will drop mid month, watch rates trickle down when they do.

You’re confusing variable rates and FRBs

[981Boxess]

NRG1976 said:

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.

When you say variable rates do you mean like this one:

We’re writing to remind you we will be reducing the rate on your Ford Money Flexible Saver account effective 17 January 2024 as follows:

Current rate New lower rate
4.84% Gross 4.75% Gross

[981Boxess]

Teatowell said:

NRG1976 said:

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

Metro will drop mid month, watch rates trickle down when they do.

Only a matter of time.

[Teatowell]

981Boxess said:

Only a matter of time.

Absolutely.

[anonymous-user]

981Boxess said:

When you say variable rates do you mean like this one:

We’re writing to remind you we will be reducing the rate on your Ford Money Flexible Saver account effective 17 January 2024 as follows:

Current rate New lower rate
4.84% Gross 4.75% Gross

Exactly like that one. I have a Marcus account currently paying 4.75%, I suspect I will get a similar email telling me it has dropped 0.25 in the next few weeks.

[eliot]

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%...

What's the maths to calculate that ? - I've got a similar a/c with YBS and probably got suckered the same way.

[Zoon]

eliot said:

What's the maths to calculate that ? - I've got a similar a/c with YBS and probably got suckered the same way.

Because the average balance over 12 months is 50% of the full amount.
This means you'll only earn half the headline rate.

[rossub]

There’s no suckering going on. You’re getting 8% interest on whatever your balance is each day.

It’s really designed for people saving from their monthly salaries, not for those who have the full annual £2,400 available at the start of the year.

[GT4P]

I have savings in the Santander at 5.2% and every month take out £500 to put in YBS at 7 % so getting a little extra but maintaining a base savings rate of 5.2% for whole amount

[LH.]

eliot 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%...

What's the maths to calculate that ? - I've got a similar a/c with YBS and probably got suckered the same way.

https://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php

[eliot]

LH. said:

ttps://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php

Thanks - spot on

[Drew106]

eliot 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%...

What's the maths to calculate that ? - I've got a similar a/c with YBS and probably got suckered the same way.

As per rossub's post; There's really no suckering in. These are 'regular savers'. Generally higher interest rates to encourage monthly saving which are limited to a monthly max deposit. A decent way to max interest receivable if you can be bothered with the small amount of additional admin.

Comparing them to an easy access or fixed term saver isn't really relevant. If you have a lump sum which you're looking to pop in a saver for a period of time, these aren't for you.

Referring to my last post, you can use these to add a bit of extra interest:

Drew106 said:

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 all 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).

£26 extra over a year in this comparison. Worth setting up a new account? I don't think so, personally. But I have a 7% regular saver linked to my existing First Direct current account which I drip £300 into each month.

Edited by Drew106 on Friday 5th January 13:35

[NRG1976]

When you get to the point in life where you have to chase 50p per week extra interest, something has probably gone wrong somewhere in your life decisions!!!!

[Whistle]

NRG1976 said:

When you get to the point in life where you have to chase 50p per week extra interest, something has probably gone wrong somewhere in your life decisions!!!!

Would you walk past £26.00 on the floor?

That’s not allowing for compounding

[markiii]

Both fair points but it's so easy to open online these days why wouldn't you

[gotoPzero]

Just had an email from Virgin saying they are reducing their standard rates by 1% on saver accounts.

Think that means its 2.5% from next month.

[OldSkoolRS]

Virgin email said said:

Hello OldskoolRS,

We’re writing to let you know that on 19 March 2024, we’ll be reducing the interest rate payable on your M Plus Saver account.

As above, so in another two months before the rate drops to 2.50% and 2.00% AER (depending on balance). Mine is pretty much empty as it's easy enough to move money from Santander @ 5.08% (monthly interest), but it's more that it's a sign of the rates sliding back down again. Premium bonds 'prize rate' is coming down too.

Hopefully, with thanks to this thread a few of us managed to get some decent rates while they were still available.

[brickwall]

I had an email from Monument saying they were reducing the rate on the notice account. Was 5.12% gross, now 5.03%.

[Teatowell]

Teatowell said:

Metro will drop mid month, watch rates trickle down when they do.

Lo and behold.