Regular Savings Accounts Article Discussion

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  • eskbanker
    eskbanker Posts: 31,066 Forumite
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    Dewpoint wrote: »
    So where does that put MSE surveys?
    Right in the hands of those who choose to participate in them, I'd say....

    And for the record, I'm not trying to defend FD in any way, and recall posting on a previous thread that I was unimpressed when opening accounts with them and so didn't/don't buy into any hype about them, real or perceived - some brands just happen to attract passionate or even blinkered advocates (see also Apple). However, I also don't buy the conspiracy theory angle that MSE are somehow ramping them for financial gain, or indeed at all.
  • badger09
    badger09 Posts: 11,211 Forumite
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    I don't rate First Direct particularly high in any aspect, apart from their market leading regular saver, which is the only reason I have accounts with them.

    I haven't found their telephone service to be any better or worse than other banks. I don't like their online banking, but the app does all I need.

    It is not just MSE polls where they consistently come top. Which? also rates them as the top current account provider. In the latest Money Which? First Direct is their only current account 'Recommended Provider'. The reasons cited are:
    1)The cheapest overdraft in our scenario (Annual cost of £500 authorised overdraft for 2 weeks a month)
    2)Customers love its UK based call centres with no automated systems

    I suspect that to most of the regular posters on this forum, neither of those reasons is important or even relevant. However, to some people, they must be;)
  • missymouse
    missymouse Posts: 750 Forumite
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    I've just done the F D saver account no problem and it's all set up I have some other money to invest as it has been left in the offset for a while but paying off mortgage shortly. the rates are a joke. Any advice?
  • Dewpoint
    Dewpoint Posts: 144 Forumite
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    edited 14 October 2016 at 7:00AM
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    Day 4: my FD Regular savings account was finally opened, but only after they were prompted to do it.
    Day 5: the regular savings account still not showing in the online system.

    When I opened a similar regular savings account with Nationwide, all this was done and dusted within 24hrs, and the deposit was earning interest from day1!

    I have no particular affiliation or loyalty to Nationwide, but I do know when I'm getting good and shoddy service. BTW - NW pays the same 5% for regular savings, so FD is not the "market leader".
    The fact remains, banks answer to shareholders while building societies are accountable to their members!
  • EarthBoy
    EarthBoy Posts: 3,040 Forumite
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    Dewpoint wrote: »
    Day 5: the regular savings account still not showing in the online system.

    It does take a couple of days before it shows in online banking. Mine was showing on the FD app for two days before it was visible online.
  • Dewpoint
    Dewpoint Posts: 144 Forumite
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    It has taken 5 days so far and my new account is still not visible online. I think we (and MSE) should stop making excuses for shoddy service. Their customer service, and online system from my experience is sub-standard.
  • Dewpoint
    Dewpoint Posts: 144 Forumite
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    Day 7: Still no visibility of my Regular Saver on FD website even though they promised it would be visible "with 48 hrs" on the 13th Oct.
    A similar Regular Savings account opened last month with Nationwide was done and dusted in 24 hrs.
    So, I'm beginning to take MSE recommendations on "Customer Feedback" surveys with a rather large pinch of salt!
  • elcloud
    elcloud Posts: 1 Newbie
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    Just noticed this on the Leeds BS website :-

    Maximum operating balance £6,000 (excluding accrued interest). If the balance exceeds £6,000 (excluding accrued interest) the interest rate that shall apply to the whole balance will be 0.50% Gross‡p.a/AER† (variable).

    Presumably that means after 2 years of paying in £250 per month, you would have to use your one annual withdrawal to remove £3000 every year!

    Also the MSE page says it can be opened AND operated online. The Leeds page says it can only be operated in branch or by post.
  • mhg_2
    mhg_2 Posts: 8 Forumite
    edited 8 February 2017 at 11:24AM
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    Can't think I am the first to spot this:

    If you put £250/mth into a 1 year 4% RS you may asssume you earn just 2% effectively over the year on the final balance amount (i.e. 4% on an average balance of £1,500).

    You will however earn closer to 2.17% effectively over the year on your final balance of £3,000. Interest accrues on the daily balance (tho' not compounded) so the fact payments are made at the start of a month (from when the account opened) means the average daily balance over the year is more like £1,625 than £1,500.

    Many RS accounts allow monthly payments in during each calendar month or some have an artfiicial cut-off for a month end/start (eg. Lloyds is something like 25th of each month). If you are drip feeding your account and open it near the end of a 'month', you could pay your second payment in as soon as the new 'month' starts and keep to that day in each subsequent month. E.g. open a monthly saver on 31 Dec with £250 and then add £250/month on 1 Jan thru 1 November and your average monthly balance from 31 Dec to 30 Dec the following year gets close to £1,854 and the effective interest rate on the £3,000 final balance becomes 2.47%.

    This is not a mistaken assumption about 'compounding', which is not applicable to a 1 year account. It is just that you have taken your money away from whatever else it was doing and held, in effect, an extra £250 in this account throughout the year earning 4% on that extra bit.

    Don't tell anyone else about this otherwise the banks will change the rules.
  • mhoc
    mhoc Posts: 19,262 Forumite
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    elcloud wrote: »
    Just noticed this on the Leeds BS website :-

    Maximum operating balance £6,000 (excluding accrued interest). If the balance exceeds £6,000 (excluding accrued interest) the interest rate that shall apply to the whole balance will be 0.50% Gross‡p.a/AER† (variable).

    Presumably that means after 2 years of paying in £250 per month, you would have to use your one annual withdrawal to remove £3000 every year!

    Also the MSE page says it can be opened AND operated online. The Leeds page says it can only be operated in branch or by post.

    I had a Leeds BS issue 3 regular saver opened about April 2016. I've been told I can keep it open until the end of October and then I have to close it. In the meantime its earning 2.30% which is better than nothing. It was opened online, just needed to send off the cheque. It is no longer accepting any money in.
    Last month I opened a Leeds BS issue 4 regular saver which again I didn't online and I just sent a cheque.
    The £6000 limit is slightly worrying but is it likely that this account will still be functioning in 2 years time?
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