Saving - on a lower income

Ak92 wrote: »

Haha my bad, I'm in Leicester. Thanks

So the Virgin Money RS would net you £36 is you max it over 12 months.

This is an amazing list of Regular Savers that someone did: http://forums.moneysavingexpert.com/showthread.php?t=5776240

But looks like in Leicester itself, you have the standard banks. If you have a current account with HSBC, Santander or Nationwide you could open one of their linked regular savers paying 5% with varying monthly deposit caps, netting you between £65-£80 over 12 months proving you max.

However, you do have a Leeds Building Society branch, so you could open the Regular Saver (Issue 11). 2.55%, 12 months, up to £250 a month. You could open another one 12 month later and start again.

You have a Nottingham Building Society in Cossington, so you could open Regular Saver (Issue 3). It is 1.5%, and you can deposit up to £500 a month, but the great thing about this one is that the max. balance is £750k, so it's effectively without a time term (you'd die before you reached the max. lol) so you can add up to £500 a month year after year after year. If you put your £300 in a month for 10 years at 1.5%, you'd get £2,862 in interest. Even more if you saved more a month and if the rate goes up (likely).

You also have a Yorkshire Building Society in Leicester, which is a 2 year account, where you can again deposit up to £500 a month, and it pays 2% (they put their rate up in line with the base rate, so could increase more soon). Your £300 a month for 10 years would earn you £3,882.

If you opened a Virgin Money RS each time it matures ever year for 10 years, at current rate of 2.25% paying £36 per RS at the end of each 12 month term (so 10 regular savers in total), 36 x 10 is only £360.

I find Building Society's are better for Regular Savers as they tend to have longer terms, high max. caps. Lower rates but they pay you more long term, because they compound over longer periods.

For example, Firect Direct RS will pay out the most of any in one year, £96, provided you have their current account, over 10 years that's £960, 10 of their regular savers, and sticking with First Direct (who don't have branches) for 10 years. Go for a Building Society, and look thorugh that list. :beer:

Ak92 wrote: »

Hi aj23 thanks so much for taking the time to research and write up your reply, much appreciated. I like the look of the Leeds Building Society Regular Saver (Issue 11). 2.55%. And that list is very comprehensive.

I also like the look of the Homesdale BS Young saver which switches to a HomeSaver account when I turn 23. Do you know much about this account and if it looks too good to be true?

Thanks again

You're welcome :beer:

That does look good actually. Some will say it's below inflation, but they would be missing the point that you can deposit up to £25k before you're 23, and then it switches to an account where you effectively get the same rate. It all looks legitimate.

I always think longer term accounts are better because of the compounding of interest over many years instead of just one year, so if you feel like this is a good one then go for this one.

How old are you?

have you joined your work pension?