Also just got one and opted for the monthly interest.
When I plugged the figures into the Compound Interest calculator the interest after 12 months worked out the same between compounding monthly at 5.08% or yearly at 5.2%.
Best savings account?
- Thread starter Merlin5
- Start date
When I plugged the figures into the Compound Interest calculator the interest after 12 months worked out the same between compounding monthly at 5.08% or yearly at 5.2%.
both LOL!
im just waiting for a crash, or not... my intention for years has been to make sure i can have a VERY good deposit. i ended up locking in a large amount of cash into a halifax 4.0% for 12 months in dec 22 , thankfully not long left, but the amount in this account alone is doing 2/3 of my rent alone.
halifax 4.5% reg saver
2 x club lloyds savers
natwest 6.0% ? saver
newcastle BS 4.5% saver
santander 4.0 % saver
just opened the santan 5.2% today and moving over whats in the newcastle bs over to it
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That's nuts though. House prices may have dropped a bit, but they're not going to crash through the floor. Even taking into account the market dropping our house has increased in value by nearly 25% in 4 years. You'd never see that sort of returns from savings.
That's kinda the point of them though. Can't have your cake and eat it. If you want easy access then you need to sacrifice on the rate a bit.
Associate
Plus anything over the interest savings allowance is taxable
Soldato
Yeah it's just not stated anywhere if the 5.08 is the aer or gross, it says both which isn't how compounding interest works
Soldato
Just got the Santander account open email with a key facts document attached which states:
What is the interest
rate?
£1 to £250,000
If interest is paid annually:
5.20% AER/gross (variable)
for 12 months from account
opening
If interest is paid monthly:
5.08% AER/gross (variable)
for 12 months from account
opening
{ We work out the interest we’ll pay on your account each day.
{ You can choose whether you want us to pay interest monthly or yearly into your account.
Once you’ve chosen, you can’t change your mind. We’ll pay the interest on the monthly or
yearly anniversary of the day you opened the account.
{ We don’t pay interest on balances above £250,000.
-----
Just in case anyone is interested.
What is the interest
rate?
£1 to £250,000
If interest is paid annually:
5.20% AER/gross (variable)
for 12 months from account
opening
If interest is paid monthly:
5.08% AER/gross (variable)
for 12 months from account
opening
{ We work out the interest we’ll pay on your account each day.
{ You can choose whether you want us to pay interest monthly or yearly into your account.
Once you’ve chosen, you can’t change your mind. We’ll pay the interest on the monthly or
yearly anniversary of the day you opened the account.
{ We don’t pay interest on balances above £250,000.
-----
Just in case anyone is interested.
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Absolutely garbage.
Stuck mine in premium bonds.
Decided to basically gamble with the interest
oh ye for sure im paying tax on my savings, but i cant get out of that, when i did some bitcoin / alt mining, i always just sold for either cash directly with a buyer or bought things at places that accepted BTC, that way i was " off grid " as i never went through exchanges. This time i have no say in the matter as i think HMRC just adjust my tax code to suit the amount ill have to pay in tax
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Soldato
National Savings are offering 6.2% if you are willing to tie money up for a year: https://www.nsandi.com/products/guaranteed-growth-bonds Saw this via MSE and have opened up an account. Certainly better than what I'm currently getting. Upper limit is £1m, so even the gucci belt wearing top revenue earning alphas can play.
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Soldato
Somewhere to put the children’s pocket money
Yeah but they wont do that because its not tax effficent, low coupon gilts are a far better option.
Soldato
To be fair ISAs were never really designed to be an easy access option and the rules to allow early withdrawals were only implemented with significant interest loss penalties. They are still the best risk-free option with a guaranteed rate of return (~5%) which avoids further tax liabilities _if_ you are able to leave the investment in-place for the bond duration.
e: bon = bond
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Unfortunately for me I am planning a big spend next year so unable to lock away with any significant money. Shame as rates are so good for bonds.
Soldato
Okay how long before Chip up it from 4.82% to over 5.04% to beat Santander...and then I'll have to move all my money back?
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I’ve done this, it’s showing two accounts on my online banking, this normal?