Nationwide Regular Saver - ditch or keep?

davidmckay

I opened a Nationwide Regular Saver when it first came out. Originally limited to £250/month it recently increased to £1000/month. I now have about £13000 saved. Originally the rates were very good and competitive - there's no introductory bonus that runs out, no restrictions on moving money about that would penalise the whole amount.

Trouble is, the rate has dropped to 2.5% provided I pop in £1000 each month. There are better easy access accounts out there no, but most seem to have an introductory bonus, so I would have to remember to move the money again in a year.

So, I'm thinking about moving the money out. I do have a mortgage which is also at 2.5%, so I guess I should really just bung the whole lot in there.

Any advice gratefully received.

opinions4u

Or bang it in www.egg.com at 3.25% (2.6% net)? Marginally more than your mortgage rate with the option to get it out if the rate environment changes.

Why not set up a Regular Saver at Halifax 5.0% (4.0% net) and review your options annually (e.g. pay lump sum off the mortgage, find a better rate account etc). I believe the Lloyds alternative allows withdrawals.

sloughflint

davidmckay wrote: »

I opened a Nationwide Regular Saver when it first came out. Originally limited to £250/month it recently increased to £1000/month. I now have about £13000 saved. Originally the rates were very good and competitive - there's no introductory bonus that runs out, no restrictions on moving money about that would penalise the whole amount.

Trouble is, the rate has dropped to 2.5% provided I pop in £1000 each month. There are better easy access accounts out there no, but most seem to have an introductory bonus, so I would have to remember to move the money again in a year.

So, I'm thinking about moving the money out. I do have a mortgage which is also at 2.5%, so I guess I should really just bung the whole lot in there.

Any advice gratefully received.

DITCH.
Perhaps open a couple of LTSB Vantage accounts and keep 7k and 6k @4% ( remember to rotate 1k each month) and one of their regular savers for 5% with future £250 pcm? Keeps the easy access of the Nationwide RS but without the penalties and better rates.

Sceptic001

Yes, ditch the Nationwide.

Their rates always used to be quite competitive (esaver, Regular Saver, FlexAccount) but are now rubbish. Also they never notify savers individually about cuts in interest rates. I wonder how many savers (who don't read these forums!) realise that they now get only 0.45% on their previously market-leading e-saver, or that they get NOTHING on their FlexAccount?

Any ideas why the Nationwide is now so poor for savers? Is it because they have been hit by FSCS premiums, or simply that as the biggest BS they are getting flabby?

pattycake

My husband and I both had one of these regular savings account with Nationwide from the inception.

I closed both of them a couple of months ago. I can do better elsewhere.

RayWolfe

2.5% is not terrible and you only need a net £500 each month to get that rate.
I use mine (linked to my current account with them) more like an instant access account for very short term savings. So, it may run for a few months building up an amount that I will need, then I transfer all but £10 on the first of the month, leave it like that until I start again in perhaps another month or two. Very handy, but only because I can do instant transfers to my FlexAccount.
A better rate on their ESavings would be better ....

caveat_emptor

RayWolfe wrote: »

A better rate on their ESavings would be better ....

Where the interest rate is 0.45%

Robert_Sterling

This savings account has bizarre terms and conditions.
The optimum date to close the account is on the first day of a calendar month.

Robert_Sterling

The worst day to close this account is on the last day of a calendar month.

davidmckay

Thanks for everyone's replies so far. I think what I will do is put about half into my mortgage (I wanna be mortgage free), and the other half across to my A & L Online saver 5. But as mentioned, it would make sense to do this at the begining of next month, so I get the max interest rate for the month.

sloughflint

davidmckay wrote: »

Thanks for everyone's replies so far. I think what I will do is put about half into my mortgage (I wanna be mortgage free), and the other half across to my A & L Online saver 5. But as mentioned, it would make sense to do this at the begining of next month, so I get the max interest rate for the month.

Not sure I agree with your logic OP.

If you put half in the mortgage @2.5% and half in A&L @2.52% net, that's an equivalent rate of 2.51% net on your 13k and the A&L includes a one year bonus rate.

If you put your 13k in the LTSB accounts I mentioned for example, the net rate is 3.2%.

You say you want to be mortgage free but if you put funds in better paying accounts than your mortgage rate and keep a regular eye on the situation, the long term effect would be to be mortgage free sooner.:T