![]() So now I am properly saving like an actual adult, instead of begrudgingly sticking money into another account each month. A bit dramatic, but there is an element of truth in that – for whatever reason, your income and money could drain away. A colleague helpfully pointed out a few years ago that ‘you’re only ever three pay packets away from being homeless’. But in the second year, the amount you’d earn. For example, if you were to put £1,000 in your savings account at an annual interest rate of 1.5 AER / Gross, you’d earn £15.10 (1.5 AER / Gross of £1,000) of interest in the first full year. ![]() I’m not saving for anything in particular, more for the financial security it gives me. You can earn interest on the money you put into a savings account. ED: To read more about what AER actually means, Money Saving Expert has a pretty good explanation. ![]() They’ve been pretty good to me and I understood their savings accounts, so I trust them to look after my cash. AER: is an Annual Equivalent Rate, is a figure which shows what the profit rate on an account would be if profit was paid for a full year and compounded. So I gave up and opted to have everything with Lloyds, who I bank with anyway and have done for years. What happens to my money? Financial jargon is so confusing. Variable interest, fixed rates, personal savings allowance…I kind of get what these mean, but what does it actually mean? I did look at opening a savings account with other banks but with so many competing savings accounts it was hard to plough through the info. It shows how much the interest rate would be if the interest was worked out once a year. This means I don’t have a chance to dither about how much I put away, or even if I put anything away at all! Which is good, because it takes the money straight out of my account when I get paid. All I have to do is pay in money via standing order each month. I’ve also opened a proper savings account that actually gives me some money back – 4% for the first 12 months. But whatever it is, I’m sure it’s a good thing. Actually, up to 4% AER variable credit interest, which I don’t really understand….so that can be another blog. But no!īy signing up to Club Lloyds, I get interest on my balance. Whenever I’m online banking, I don’t pay all that much attention to all the products on offer – the messages are so focused on things like mortgages and loans, I just assumed none of it was relevant to me. By some interpretations it can seem misleading that some financial institutions boast an AER rate, fooling many potential customers into assuming '5 AER' offered, say, by ING Direct is equal to '5 gross' offered by Nationwide for their e-Savings a/c. Progress! In my mission to be more financially sensible and to actually save my money instead of obliterating it on crap, I have looked at what my bank actually offers and been pleasantly surprised. It could be linked on the left, in the Banking + Savings & Investments sections.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |