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My first adventure - the Barclays Monthly Savings Account

Donna Werbner
by Lovemoney Staff Donna Werbner on 28 May 2009  |  Comments 3 comments

My first ever miscellaneous money adventure is all about savings accounts. Specifically, regular savings accounts.

Hello and welcome to my blog!

My first ever miscellaneous money adventure is all about savings accounts. Specifically, regular savings accounts. Even more specifically, the Barclays Monthly Savings account, which I opened last weekend.

Why I like this account

 It pays a whopping 6% fixed AER. That's significantly more than the market-leading instant access account from ING Direct, which only pays 2.75%.

It's also extremely quick and easy to open online if you're already a Barclays customer, like I was.

What's the catch?

You only earn 6% AER in months when no withdrawals are made.

The good news

If you want to make a withdrawal, the good news is: you can. The rate simply drops to 3.03% AER that month, then goes back up to 6% AER the following month.

So it turns out this account is a pretty good instant access savings account as well, if that's the way you want to use it.

The bad news

There is some bad news as well, I'm afraid. This account is for regular savers. So you have to save... well... regularly: at least £20 a month by standing order.

And the other bad news is, it's not a great account if you have a lump sum to invest, because you can only put in a maximum of £250 a month.

Still, if you're currently saving between £20 and £250 a month, you really can't do better - especially if you would like the freedom to make withdrawals at some point over the next year.

My lovemoney.com love-o-meter rating

I really love this savings account so it gets a spectacular nine out of ten loved-up hearts from me.

There will be another miscellaneous money adventure from me next week - so keep reading!

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Comments (3)

  • Elsie18
    Love rating 0
    Elsie18 said

    Sounds fantastic at 6% - sadly you won't get that! Pay in the maximum allowed of £250 a month = £3000 py and without missing a payment you'd expect to earn £180 gross in interest. But the interest is calculated on a sliding monthly scale, commencing on month 1 at 6% going down to 0% by month 12!  On average over the year the interest is still good at 3% or £95 but if it was regulated by The Trades Description Act it would be misleading.

    Report on 02 June 2009  |  Love thisLove  0 loves
  • Hitesh
    Love rating 0
    Hitesh said

    Trying to be financially savvy I have a Barclay’s current account and so was eligible in securing the regular savings account at 6%. It is a good savings account as there are no limitations in applying for the regular savings account.

     

    I also bank with the HSBC and they have a regular savings account that pays 8% to 10% depending on the type of account you have.

     

    Now as I refuse to pay for banking I have a regular current account but as my salary is paid into this account it qualifies as a Current Account Advance. This pays the 8% interest rate. Unfortunately the interest is paid annually so you can not see your money working for you and no withdrawals are allowed other wise the interest rate is measly. But if you can afford to save £25 to £250 per month and forget about it then it’s a nice little earner on the anniversary of the account opening.

     

    I also signed of up for the Halifax reward account recently which then brought my attention to the Halifax regular saver. The savings rate is as high as the Barclays or HSBC it is only 4% but it allows a maximum of £500 per month as a regular savings amount. It does have the flexibility of changing the amount each month so if you cant make £500 one month then any sum from £25 to £500 can be paid in. Also you can set up a standing order from any bank account you have and so don’t have to have a current account with the Halifax.

    Report on 03 June 2009  |  Love thisLove  0 loves

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