Regular Saver with different Rates

ScotlandM · 25 July 2012 at 11:59AM

Hi,

I've filled my ISA for the year and have decided to put some spare money in a regular savings account. I'll have access to the money as I might need it if there is a problem with my mortgage/job/house sharers

The rate in the regular saver varies with how much you put in. Is there any calculator or way to find out what is best as i can't depost 500/month every month.

I start with 2000 spare and could have 200 each month to add. Is it best to add 1000 now and next month so it is in there longer, or should i try and add 500 for 6 months? I can make sure to add 100/month minimum

I've copied the table of rates from their website.
Monthly increase in balance Free withdrawals per year Notice period/loss of interest for additional withdrawals AER% AER% including bonus Gross p.a.% Net p.a.% £1 - £99 Unlimited n/a 0.10 n/a 0.10 0.08 £100 - £199 Unlimited n/a 1.35 n/a 1.35 1.08 £200 - £499 Unlimited n/a 1.85 n/a 1.85 1.48 £500 - £1,000 Unlimited n/a 2.50 n/a 2.50 2.00

Thank you for any advice
ScotlandM

psychic_teabag · 25 July 2012 at 2:43PM

You don't say what this account is, but it looks like they're paying up to 2.5%. Given you can get 3% in an instant-access account without much trouble, I don't see the attraction of such an account.

premierfella · 26 July 2012 at 5:06PM

Looks very much like the Nationwide Regular Savings account. As already mentioned, the account is (and has been for quite some time) unattractive due to the interest rate being below the best online instant access (with bonus) rates.

ScotlandM · 30 July 2012 at 10:13AM

Yes, it is the Nationwide Regular Savings account.

I guess I should use an online instant savings account. I have my bank account with HBOS and mortgage with Nationwide and was trying not to have a third place with my online banking details.

I've got the HBOS regular saver, ISA is full for the year and the nationwide regular saver was better rate than the HBOS instant saver. Though if i don't save 500/month maybe the instant saver at 2% will do.
I'll look at the other instant access online savers
Thank you

jennifernil · 30 July 2012 at 11:02AM

I would be looking for something that will give you at least 3%, there must be something available.

The best Halifax rate is 2.8% at the moment.

http://www.halifax.co.uk/savings/accounts/online-saver/

For a regular saver, you cannot beat First Direct, it pays 8% but only takes max £300 per month. You need their current account first, and £1 in a particular savings account so they don't charge you for the current account. But you do need to pay into the RS every month, for the full year, though you can vary the monthly amount.

http://www2.firstdirect.com/1/2/savings/regular-savings-account?WT.ac=FDST_LHM_SAV_REG1002

The Halifax RS is 2%, which is very poor in comparison. I used to have it a few years back when it paid 6%, these days it is not so easy to find a good rate!

JayCarter · 30 July 2012 at 11:56AM

Well first of all you say that you have £2,000 to start. Which would mean any "Regular Saver" wouldn't let you drop that amount in all in one at the beginning. With regular savers you can gain up to 8% interest but of course the interest is calculated daily on, which is why they offer such high interest rates, because they also don't allow you to stick all of it in at once.

Do you think it would be possible to maybe stick it into a 1 year fixed account for that £2000? Or maybe just a highest interest savings you can think of but will allow you to withdraw, which means if you save next years ISA allowance in a savings account that you can withdraw from, when April comes a long, you can transfer your current ISA to a higher one, and then instantly drop the years allowance in from your savings. Which mean you will gain maximum interest.

Just some ideas. I'm sure others may have better ideas!

scott_lithgows · 30 July 2012 at 4:10PM

Possible 3.85% with Scottish building society if you stick to the t&c,s

Regular Saver with different Rates

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free