The Off Topic Topic

[The Larch]

Forget about getting interest for a savings account. That one asks you to put 1000 quid each month to get those rates, it looks more like an investment product than a bank account.

[Josquius]

Forget about getting interest for a savings account. That one asks you to put 1000 quid each month to get those rates, it looks more like an investment product than a bank account.

I can handle that.

I'd like to have a proper ISA ideally but it seems I'm legally not allowed since I'm not paying taxes in the UK at the moment.

[mongers]

Forget about getting interest for a savings account. That one asks you to put 1000 quid each month to get those rates, it looks more like an investment product than a bank account.

No it'll be a regular bank account, there are a lot like that in the UK banking sector, it's just a juicy carrot that banks dangle and once the 12 months is up, then rely on peoples inertia not to change to another provider.

FWIW - it roughly works out at a £100 benefit in the first year, which is pretty much the standard offer now from banks if you transfer your main account over to them.

[grumbler]

I'm thinking to open a new bank account so I can separate the one where I'm saving and the one I'm using to pay for stuff online.
Looking here:
http://www.nationwide.co.uk/products/current-accounts/flexdirect/rates-fees-overdrafts

Access to 5% AER (4.89% gross p.a) interest on in-credit balances of up to £2,500 (fixed for the first 12 months). You must pay in at least £1,000 per calendar month (excluding transfers from any Nationwide account held by you or anyone else) to get these rates. After 12 months the interest rate reverts to 1% gross pa./AER (variable) on balances up to £2,500. Interest paid monthly. Advertised rates correct at 1 March 2013 and this rate can be changed at any time or withdrawn without notice. Age 18+

Anyone who knows these things better, what does AER mean?
This means I'll get 5% interest yearly albeit divided into monthly sums correct?
So if I have £2,500 from the start £10.50 a month?

AER is annual effective rate (that's what you will earn after a year).  It includes compounding the interest paid monthly.  Gross is the amount of interest excluding the compound interest.

[grumbler]

Note that the 5% AER interest rate is only on the first GBP2500 of the GBP12,000 you will have to put into the account.  Sounds like a scam to me.

[Josquius]

Note that the 5% AER interest rate is only on the first GBP2500 of the GBP12,000 you will have to put into the account.  Sounds like a scam to me.

Yeah, saw that. Most give 0 though.

[The Larch]

Note that the 5% AER interest rate is only on the first GBP2500 of the GBP12,000 you will have to put into the account.  Sounds like a scam to me.

Yeah, saw that. Most give 0 though.

Because interest rates are close to 0 all over the western world. Anyone offering you something is because it comes with strings attached, in the case of the one you mentioned it's an investment product masquerading as a savings account.

[derspiess]

Did we hit peak booze?

Russia really tried to pick up the slack in 2003.  Then had a hangover in 2004.  Then they slowly got back in the game after that. 

[Josquius]

Note that the 5% AER interest rate is only on the first GBP2500 of the GBP12,000 you will have to put into the account.  Sounds like a scam to me.

Yeah, saw that. Most give 0 though.

Because interest rates are close to 0 all over the western world. Anyone offering you something is because it comes with strings attached, in the case of the one you mentioned it's an investment product masquerading as a savings account.

I'm not seeing a catch beyond the need to have 1000 put in every month.
Not huge money but seems better than the other options

[The Larch]

Note that the 5% AER interest rate is only on the first GBP2500 of the GBP12,000 you will have to put into the account.  Sounds like a scam to me.

Yeah, saw that. Most give 0 though.

Because interest rates are close to 0 all over the western world. Anyone offering you something is because it comes with strings attached, in the case of the one you mentioned it's an investment product masquerading as a savings account.

I'm not seeing a catch beyond the need to have 1000 put in every month.
Not huge money but seems better than the other options

If putting 1000 quid into it every month is no big deal for you, knock yourself out, Mr. Moneybags. 

[Eddie Teach]

That's Mono bucks there.

[Jacob]

"Make the worst volume control you can imagine": https://imgur.com/t/technology/XOT47

[Malthus]

"Make the worst volume control you can imagine": https://imgur.com/t/technology/XOT47

Not a single Spinal Tap reference. 

[Liep]

"Make the worst volume control you can imagine": https://imgur.com/t/technology/XOT47

[Josquius]

Spot the error