I’m not sure what you mean.
£3k in monzo @ 4.35% over 12 months = £130.5 interest
£3k saved in the virgin reg saver over 12 months @ £250 max per month = £162.40 interest (equiv of 5.4% when adjusted for the compounding)
So you start with a £3k lump sum which you drip feed in to a regular saver. The ‘balance’ falls from £2750 after the first deposit to zero after the twelth.
So long as you ensure that balance isn’t earning zero (and it’d be very silly to let it!) your rate for comparison is not 5.4%. Even leaving the balance in Monzo earning ~4% (which would still be quite silly) would mean you’d earn ~7.5% across the entire lump sum over the year.
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I don’t understand. You’ve got a screenshot above of the notification that it’s going to change.
Ah I see what you mean. I was doing a very simple straight comparison. In practice, that’s how I would save into the account if I had the money available to do so. But 5.4% is the max you get out of the virgin account alone.
We’ve been through this in other threads, but this isn’t a helpful comparison. The interest rate applies to the money that’s in the account. It’s not fair to include money that isn’t.
Even monzo’s 4.35% account is limited to £100,000 deposits. If I told you that I had £1M to save, and that the monzo interest rate was therefore only 0.435%, you’d (quite rightly) tell me I was being daft, and that this was a silly calculation.
Clearly, if you have a decent lump sum to save right now, a regular saver is not for you, but the account pays 10% on the money that’s in it. That’s just a fact. And, for someone trying to save a bit every month, that might be perfect.
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My advice would generally be not to do regular savers if you are minded that you should only keep your savings in one place; as they’re unlikely to be the best solution for that.
Even the Virgin one only really works if you’re aiming for total savings of <£3k within a year (preferably built up within a year).
(Note, this isn’t me saying regular savers are no good - in fact IMO they’re wicked fun and most of mine of my wife’s non-LISA savings are on the regular savings merry go round, last time I worked it out the blended average across the whole lot was about 6.7%).
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No, it is not.
10.38% gross interest is what you get out of the Virgin RS alone . . on money held in that account.
You obviously do not earn interest from Virgin Money on money that is not in their Regular Saver.
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I said equivalent for a reason face palm
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Even then, in the real world, you wouldn’t leave the rest of it earning 0%. You can get about 5% in some instant access savings accounts, so, over the whole year, you’d average around 7.5% interest (because half of it would have earned 5% from your instant access account, while the other half earned 10% from the regular saver).
OMG you lot are relentless sometimes. I’m sorry I even commented.
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