Chesire 8% Coming to a End Soon

mary

Like you I built them up gradually. Bit like having children, you get used to one, then the next one comes along!

To answer your question. I have my principal current account which is Lloyds from where the majority of my SOs go out on the first of the month. In order to get the A&L 10% Regular Saver, I opened an A&L Premier Direct current account, which I found useful as the remaining SOs go out from this account too sort of mid month. As the Premier Direct Current account gives 5% on amounts up to £2,500, every now and again I refill this account so that the SOs have enough to keep them going.

Any transfers I always do on a Monday so they avoid weekends and if the ongoing payment to a savings account takes place the following week, I make sure I park that newly moved money into a linked online saver over a weekend i.e. with Lloyds thus benefiting from a higher interest rate rather than leaving it in a current account.

A couple of month's ago I did the following calculation on what I had at the time:

"Total circulating £50,200.
Total annual net interest on reg sav £1836.51
Total net Interest on remainder in an account paying 4.95% = £1,195.92
Total net interest = 3032.43 = 6.04% net, 7.55% gross

Compared to 50,200 in an account for a year at 4.95% gross = 1,987.92 net
Therefore profit = 1,044.51 by chasing regular savers"

I haven't counted up the lost days specifically but I'm sure it won't eat too much into the profit made!

My savings pot has changed over the last couple of years, with changing interest rates, obviously. It had been with Cahoot when it's rates were good and they were quick to transfer money. Then I changed to Ing, where there is a Mon-Wed turnaround (3 days) etc. I'm about to change to Coventry First for their 5.1% current account.

The amount approximately I have moving each month is £4,000. I have rental income of £1,525 p.m. + £480 p.m - term time only. , which never goes into the Savings Accounts and is used immediately for the Regular Savers. The remaining £2,000 comes from the Savings Pot, into usually the Lloyds current account before going into the Regular Savers. However, don't forget, as my Regular Savers are staggered more or less one a month throughout the year, I often have one maturing which I then feed back into the ongoing Regular Savers, rather than dipping into the Savings Pot.

Hope it has shed some light. I realise I am lucky to have a fair amount of money available (it was an inheritance from my parents + some savings of my own). In addition, we live on my husband's income, which is by no stretch a generous salary, but I am strong willed enough to keep different monies in different pockets and not mix them up!

Afahmaep

mary wrote:

A couple of month's ago I did the following calculation on what I had at the time:

"Total circulating £50,200.
Total annual net interest on reg sav £1836.51
Total net Interest on remainder in an account paying 4.95% = £1,195.92
Total net interest = 3032.43 = 6.04% net, 7.55% gross

Compared to 50,200 in an account for a year at 4.95% gross = 1,987.92 net
Therefore profit = 1,044.51 by chasing regular savers"


The amount approximately I have moving each month is £4,000.

I disagree with you about the amount of money you actually have circulating. It is more like £30K. Assuming you have opened evenly across the year various Regular Savers only HALF that amount is ACTUALLY IN the Regular Savers at any one time. The maturing funds are returned to the Savings Pot(s) so assuming it takes approximately one month for every closed account to be ratified and returned to the savings pot I am confident that any person could use 80% of their savings in this manner without fear of running out of available funds.
I know because my monthly payments now total £5500 and that my maturing funds per month are of a similar amount.
The £50,200 figure would only be needed if all the Regular Savers were opened at the same time and likewise ended at the same time.

mary

Perhaps I didn't phrase it quite accurately. Each month there is approx. £4K going in to the Regular Savers. So obviously the £50.2K is not all locked away at the same time.

The exercise I had done was to compare leaving that total figure in one reasonable account for a year v moving the same amount of money into regular savers over the same time scale.

So, come clean then Afahmaep, where do you have your nest eggs hiding - are they the same accounts more or less as Dagobert's and mine? Maybe we have missed some!

vishpatel

Dagobert wrote:

At maturity the regular saver account empties into an Easy Saver, which you opened at the same time for this purpose.

Phone* the Cheshire BS and ask for a withdrawal form. I would suggest to do this well in time before your account matures as you do not want the money to kick around in the Easy Saver at 3.35 %.

On the withdrawal form, you can specify how the money should be paid out. BACS transfer into a specified account is one option and this is ideal. A lot of banks send out cheques, which loses days. For the withdrawal you will have to send in your Easy Saver passbook.

*(0800) 195 1514

Hi Dagobert!

Just rang Cheshire myself, and they seem to be encouraging the head office letter route for withdrawal/closure.

I said I'd prefer using the withdrawal forms since they are a defined process and is likely to be quicker, and he agreed.

The problem with a letter is that it might not get picked up, and there is not much you can do to chase it up...

Afahmaep

mary wrote:

Perhaps I didn't phrase it quite accurately. Each month there is approx. £4K going in to the Regular Savers. So obviously the £50.2K is not all locked away at the same time.

The exercise I had done was to compare leaving that total figure in one reasonable account for a year v moving the same amount of money into regular savers over the same time scale.

So, come clean then Afahmaep, where do you have your nest eggs hiding - are they the same accounts more or less as Dagobert's and mine? Maybe we have missed some!

The usual suspects. If I did know of anybody not already talked about I would have kept it a secret:rotfl: but all these have been mentioned before so here goes:

10% B&B CHRISTMAS £150
8.05% IPSWICH TARGET £250
8% LLOYDS £250
8% HSBC (2nd Year) £250
8% NPBS £250
8% CHESHIRE (REG SAV 3) £500
8% PORTMAN (ISA) (2nd Year) £250
7% HALIFAX (2nd Year) £250
7% STROUD & SWINDON £1000
7% ABBEY £250
6.75% PRINCIPALITY £500
6% PRINCIPALITY (2) £500
6% PRINCIPALITY (3) £500
6% SCARBOROUGH £250
5.75% YORKSHIRE (3 YEARS) £100
5.25% PRINCIPALITY EASYSAVER £250

DERBYSHIRE (was 5.85%, dropped to 5%) matured on 1st August
PRINCIPALITY 6.75% matures TODAY so this months maturing funds will be put forward to opening another PRINCIPALITY and one more yet to be determined.

I cannot get A&L or BARCLAYS so am obviously missing out on the BEST in the market so will maybe go with LEEK BS.

Afahmaep

Afahmaep wrote:

7% STROUD & SWINDON £1000

Almost completely stuffed myself with this one. Having opened it very late last month the earliest I could set a SO up was the 5th of August.

Due to the weekend it has only been actioned today and like the efficient/deficient MSEer I am I logged on to make sure it had gone through.
NOT HALF!
I had added an extra zero in my haste to set it up and my current account was now £9000 overdrawn and that on an account with no arranged overdraft.
A twenty minute grovelling phone call earlier today has rectified matters and all is shipshape once again with next month's SO brought forward to the 1st of the month.
A £30 charge has been mentioned but I am assured will be refunded if applied.
CHECK and DOUBLE CHECK when setting up Standing Orders

Dagobert

Upon maturity, the fund from the Cheshire regular saver will be transferred to the EasySaver account opened at the time, where it will attract only 3.15% interest.

To withdraw the whole amount, you will need to request a withdrawal form.
I was told by a Cheshire advisor to fill in "The Full Amount" in the Amount box. I was also advised that, although it states on the back of the withdrawal form that Evidence of identity will be required, no documents other than the passbook and withdrawal form would be required to be sent in.

You can either request a cheque or BACS payment. The latter would be the quickest method. For a BACS withdrawal, specify account and sort code in the Above amount handed to field.

The Cheshire uses Barclays as their clearing bank. So, BACS payments should only take 3 working days*


* money sent on Monday arrives on Wednesday

Barter

Just in case anyone on here hasn't seen my separate post entitled
Error - Cheshire BS 8% interest pay-out!

I have copied it below as I gather ours isn't an isolated glich:-

OH & I both had Cheshire 8% regular savers which have recently matured. We duly went to get the pay-out yesterday & were surprised at the interest, or lack of it! I'd used an on-line compound interest calculator (http://www.fool.co.uk/school/compound.htm) so thought I knew what to expect, so we queried it & the branch phoned HQ.

Today we got a call from them saying that their system had indeed miscalculated, & they would get in touch again when they had got it right.

So, can I suggest you check what you have received & take it up with them if there's a problem.

Dagobert

Dagobert wrote:

You can either request a cheque or BACS payment. The latter would be the quickest method. For a BACS withdrawal, specify account and sort code in the Above amount handed to field.

Contrary to the information I had been given over the phone, BACS pay-outs are not possible.