ISA's are offering really low interest rates at the mo so thought I'd look into some regular savers. This one looks good and you can save anything from £25-£300 per month and a maximum of £3600 in a year.

Works out at £93 net interest if you save the full £300 per month from month 1.

Bear in mind you'll need a first direct current account.

EDIT**

It seems some people really struggle with basic maths and logic. So to briefly explain:

You will not receive 6% gross on £3600 for a whole year because the maximum you can save is £300 per month. I thought this was pretty obvious. Therefore, assuming you pay the maximum £300 in per month, you earn 0.005% on £300 for month 1, 0.01% on £600 for month 2, 0.015% on £900 for month 3, 0.02% on £1200 for month 4 and so on (see post 22 for a better breakdown, thanks Smithers37). It equates to £93 net interest per year, its good. If you see a better current deal, post it!

What I will be doing is moving my current ISA to the best ISA I can find, and all my new savings that I make in the next year, will go into this regular savings account - because the interest rate is far better than any ISA I've seen.

People go on about paying off mortgage etc but I have a wedding to pay for!

Hope the deal (and explanation) is useful to some of you.

Works out at £93 net interest if you save the full £300 per month from month 1.

Bear in mind you'll need a first direct current account.

EDIT**

It seems some people really struggle with basic maths and logic. So to briefly explain:

You will not receive 6% gross on £3600 for a whole year because the maximum you can save is £300 per month. I thought this was pretty obvious. Therefore, assuming you pay the maximum £300 in per month, you earn 0.005% on £300 for month 1, 0.01% on £600 for month 2, 0.015% on £900 for month 3, 0.02% on £1200 for month 4 and so on (see post 22 for a better breakdown, thanks Smithers37). It equates to £93 net interest per year, its good. If you see a better current deal, post it!

What I will be doing is moving my current ISA to the best ISA I can find, and all my new savings that I make in the next year, will go into this regular savings account - because the interest rate is far better than any ISA I've seen.

People go on about paying off mortgage etc but I have a wedding to pay for!

Hope the deal (and explanation) is useful to some of you.

did this is last year....its pants

94 quid...

Original Poster

Can you earn more in interest with a bank? If so please let me know!

i use the nationwide 5% invested 2.5k

have a standing order in and out monthly every 10th day of the month.

see what happens in 11months time!!!

Original Poster

Do you have a time machine?

Easy 6% if you have some surpass cash around.

Banned

To apply for a Regular Saver Account you must already hold a first direct current account - our 1st Account.

Original Poster

Thanks, have added to OP

These could be BoS and LLoyds Classic Vantage as well as Santander 123

If you can afford £300 savings a month the £3k to earn 3% should be no problem

Only if you don't understand how interest works. Its a regular saver, obviously if you just have £3600 sticking around earning no interest this isn't the account for you. For folks like me with a job and save some each month, its a great idea.

So could you enlighten me and perhaps others on where I've gone wrong? I'm pretty sure after reading the First Direct blurb that you would not get a total of £216 (£3,600 x 0.06) gross interest after a year of investing £300 per month.

Anyone get anything different?

The interest on each individual month of savings would be:

0.06

0.055

0.05

0.045

0.04

0.035

0.03

0.025

0.02

0.015

0.01

0.005

I don't think it works like that either. The OP has already said it would yield £94 net interest (on £300 pm / £3,600 total) after a year. That is, as you say, £117 gross which equates to a 'simple flat rate' of 3.26%. I think that the 'true compund rate' for equal monthly instalments is ([square root of 1.06] - 1) x 100, which is (1.0296 - 1) x 100 = 2.96%.

I wasn't dissing the deal, merely pointing out that the stated interest rate is, just like all other sales blurbs, slightly misleading.

Don't let the headline 6% catch you out, it's not that great. Not voted as it isn't that bad either.

Both accounts require you to pay in £500-1000 per month to keep the benefits active.

How do you do that? Can you pay in £1000 then transfer it away immediately again? Does that count?

94 quid after a year isn't much is it ? You'd be better off spending wisely saving a quid or two a week by not buying this or that and you'll still get 50-100 quid!

Or selling some games/DVDs around the house

Savings rates really are not worth the bother at the moment!

Which bank do you work at?

http://www.hsbc.co.uk/1/2/savings-accounts/regular-savings-accounts

As long as you're a particular type of customer, example - Premier customer, or a student

(used to be 8% too)

Hold off the impulse purchases! Not all just one or two :-)

Of course it would.

I use the Santander 123 account as my current account, my salary gets paid there and I transfer £1000 out that day to Nationwide via standing order and then back to Santander the following day.