Chesire 8% Coming to a End Soon

rangers_fc · 23 June 2006 at 11:46PM

Hi I take it Im not the only person to Invest in the Cheshire Regular Saver, where next people? I dont think this offer extends beyond the 1yr close out period although I would like to be corrected

Another great rate bites the dust. Anyone any thoughts ideas

empfun · 24 June 2006 at 12:00AM

It's been around for a while but have you tried Halifax Regular Saver @ 7.0%AER?

$17mma · 24 June 2006 at 6:20AM

Have a read of this thread

http://forums.moneysavingexpert.com/showthread.html?t=200061

mary · 24 June 2006 at 9:41AM

rangers_fc wrote:

Hi I take it Im not the only person to Invest in the Cheshire Regular Saver, where next people? I dont think this offer extends beyond the 1yr close out period although I would like to be corrected Another great rate bites the dust. Anyone any thoughts ideas

I haven't come across this one before. I've checked out their website and can only see a REgular Saver for 4.9%. Does this mean it's now withdrawn but in any case this seems to have been available for existing members of the Cheshire for 18 months. Can't see any mention of 8%. Where is it?

Milarky · 24 June 2006 at 3:05PM

mary wrote:

I haven't come across this one before. I've checked out their website and can only see a REgular Saver for 4.9%. Does this mean it's now withdrawn but in any case this seems to have been available for existing members of the Cheshire for 18 months. Can't see any mention of 8%. Where is it?

mary, I can't beleive you missed it! It was only available for about 3 weeks last September - hence the reference to the impending anniversary. But to the OP it's obvious... Take the cash out and drip feed in into the new Lloyds monthly saver paying the same 8% - albeit over two years - that is a very attractive account.

mary · 24 June 2006 at 7:24PM

Slipped up there, then! Missed it. Do these new accounts always appear on a Monday, having been written about in advance in the Sunday papers, or do they come out at random times?

anticlaus105 · 24 June 2006 at 7:56PM

I have this account. I think it transfers the money into an Easy Saver at anniversary. Dunno if it keeps going so you can put another 6k in over a year. I doubt it tho. May nip in and ask in next few weeks. I now have a Lloyds 8% up and running ready. Will have to use ICICI I guess to drip from tho.

rangers_fc · 25 June 2006 at 1:23AM

OK people I see I have recorded some debate good good :j, In uncertain times the Cheshire A&l etc offer good rates of return however the time constraints , like 1yr, etc are rather upsetting, I wish there were more of these accounts on offer but they seem to of dried up at the moment unless anybody has some good info? I’m not sure at times if we are better with a fixed term bonds, rather than a regular saver accounts, 8% is good however these accounts seem to be dying a death, and its not easy juggling accounts especially if you have a few of these accounts running on the hop. I’m no genius however I’m open to suggestions

Milarky · 25 June 2006 at 10:19AM

rangers_fc,
Use the 'savings fountain' approach - or any variation thereon. You allocate savings to accounts in a specified order. ISAs first as these are tax free and even at slightly lower gross rates are still attractive, Then regular savers - selecting those which pay the highest rate over those which pay less. Both ISAs and regular savers have limits however - a lower limit as well as a higher limit in the case of RS accounts. Some RS accounts rollover, some end after a year (or two etc) whilst some continue.

Yes, you have to be organised- set up numerous standing orders for each account and be prepared to recycle money after a while - but that's the 'game' of higher interest being played here.

Has anyone sat down and worked out how much difference using higher paying accounts in this way makes to savings rates? I do this for myself and by my calcultions I am getting an average of 4.72% this month compared to 3.6% net in a BOE-rate savings account like ING. That is the 'measure' of whether it is worthwhile moving the money around. Obviously the more you have the more in absolute terms you can garner through extra interest but then the availabilty of higher RS-type accounts being somewhat limited the rate-boost you can achieve will be less also.

mary · 25 June 2006 at 10:37AM

I did this calculation about 6 weeks ago. Of course allowing for an element of error along the way, but this is what I calculated.

Total circulating £50,200
Total annual net interest on regular savers £1,836.51 (I had 11 accounts)
Gross int on remainder in an acc. @ 4.95% = £1,494.90, £1,195.92 (net)
Total net interest = £3,032.43 = 6.04% net, 7.55% gross

Compared to £50,200 in an account for a year at 4.95% gross = £1,987.92 net and therefore profit = £1,044.51 by chasing regular savers.

Mine seem to mature from October round to May, but I have a lean spell during the summer months, so eyes down and looking right now. I guess it's become a bit of a hobby.

Geoffo_M · 25 June 2006 at 7:53PM

Mary, I'm really impressed - you've put a lot of work into obtaining the best rates. By your calculations, you must have approx £30k tied up in the 4.95% account, and £20k in the regular saver accounts, where it looks like you are receiving an average of 9.2%. This is a real eye opener. There must be several around and I must keep my eyes open for them. Well done!

The problem with the high rates (eg the 4.95%) is that as soon as you open an account, they reduce it. It happened recently to me when I transferred my ISA to Halifax, and as soon as I had, they reduced the rate. Annoying, to say the least.

Chesire 8% Coming to a End Soon

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