Regular Saver query

The_Bride_3

Hey!
I am thinking about opening a regular saver account - specifically HSBCs 8% (I have a current account with them).
My query really is whether I am better off interest wise drip feeding this account at £250 monthly at 8% aer, or sticking the job lot (i.e. £3000) in my ING account at (soon to be) 4.5% aer. What will get me the most interest over the year?
I know I should be able to work this out but my maths is pants!
The Bride

:xmastree:

deemy2004

drip feeding from a feeder account that also pays a good rate of interest.

I presume HSBC have other high interest savings accounts which you could use as feeder accounts

Dagobert

deemy2004 wrote:

drip feeding from a feeder account that also pays a good rate of interest.

The HSBC regular saver has to be fed from an HSBC current account. (And you will only get the ergular saver if your salary or pension is going into the current account.)

deemy2004 wrote:

I presume HSBC have other high interest savings accounts which you could use as feeder accounts

Also, as far as I know their high interest savings account does not pay any interest in a month where money is withdrawn.

For instance, you will receive interest on the Online Saver account for the previous calendar month for all days during that month with a cleared balance of £500 or more, provided no withdrawals were made throughout that month.

misskool

You need to work out all the DD's and S/O's very carefully. I transfer the money from A&L (Issue 2) on the 2nd, give them 3 days, so arrange the S/O for the Regular Saver to go out on the 5th. I lose 3 days (maybe?) on interest on the A&L a/c but I think it's worth it because it's the highest paying one out there.

misskool

Dagobert wrote:

The HSBC regular saver has to be fed from an HSBC current account. (And you will only get the ergular saver if your salary or pension is going into the current account.)

Student loans and student grants count as well. I've got one using a student account.

Dagobert

The_Bride wrote:

I am thinking about opening a regular saver account - specifically HSBCs 8% ...
My query really is whether I am better off interest wise drip feeding this account at £250 monthly at 8% aer, or sticking the job lot (i.e. £3000) in my ING account at (soon to be) 4.5% aer. What will get me the most interest over the year?

For how to calculate this, see when a regular saver is worth it:. You are probably going to be put off by the formulae but you will see that in order to calculate both options' gain you need to specify a few more the parameters: where the money is, how long the transfer takes.

The_Bride_3

Thanks for the replies everyone!
Dagobert - will have a look at your thread properly when not at work! Think I may need more time to work through it!!

Cheers
The Bride