£1000 monthly limit Reguler Saver

stphnstevey

Stroud and Swindon are offering a Reguler Saver Account at 7%, :T

HOWEVER the little gem with this one is it allows you to invest upto £1000 (unlike most others limit of £250 month) a month. Therefore great to transfer a large balance, upto £12000 in a year. This also means that more of your money is at the higher rate for longer in the year. So if you have used up your ISA allowance and have alot of spare cash in a year, this might be for you.

BEWARE - Branch based only and also no withdrawals in the year. :money:
:beer:

Jim_B_3

Even if you have used your ISA allowance, this rate even after tax knocks the socks off a whole heap of ISA rates.

stphnstevey

Actually the Net Rate (after tax) works out an average of about 5% for the year (this is a reguler saver, so it takes time to put money in to actual get the 7% Gross rate and you need to drip feed it from another savings account) which is comparable to the leading ISA rates
(eg. Bradford and Bingley 5% (Net - No tax), Instant Access Cash ISA).
:money:
However, you can get 12K into this account in a year, rather than your 3K Cash ISA limit. But eventually you will fall back on the ISA's as this rate is only for a year.

It beats the best instant access savings account at around 5% gross (or 4% Net) as well.
:T
Although it is not as high as the Lloyds Reguler Saver (and those with only £6500 to invest would be better off with the Lloyds Saver), you can get more money into it in a year. So those with £6500-12K to invest, might also consider this one.

Potentially, you could whack £3k (or more if you want to) in the Swindon and £3.5k in the Lloyds and then swap it all to the Lloyds in the second year.:cool:

codetown

this looks an interesting opportunity.
But they have few branches around (nothing in London for example). Does anyone know if they are able to operate via post?

payless

branch or agency only for this account

Sillychuckie

id be all over it like a rash if they had a branch near by or internet banking.
once they step into the 21st century, I'll consider it.

Nice find though. Hopefully it is a window of what is to come.

Innys

Are you sure about it being branch based only?

This link states that payments have to made by standing order:

http://www.stroudandswindon.co.uk/article/557,173,display.html

Granted, you need to visit one of their banches to set it up - maybe you could post the application to them - but after that deposits are made by SO only.

payless

yeah mean visit branch to open

free4440273

if one invested the maximum £1000 each month for twelve months, could someone tell me what would have accrued in interest (after tax) after the twelve months? sorry, my maths is terrible. thanks

steady__eddie

Imake it approx £336 net. This assumes that standing orders occur instantaneously which we all know they don't so you could lose 1 or 2 days interest every month or in the worst case scenario 3 or 4 days if the cash leaves your feeder a/c. on a Thursday or Friday. To be on the safe side, I would say £330 in nice round figures and you could treat anything over as a bonus.

Jim_B_3

I'll be going to the branch in Swindon tomorrow afternoon to open one of these; if anything untoward happens I'll post it here.

Update:

All's good. The chap opened it there and then in the branch; I opened it with a cheque. They wanted standard identification and proof of address (passport & bank statement were fine). He gave me a standing order form to give to my bank, and we're all set.

It's deliberately an entirely branch based account; according to the chap at the counter, in the past they had a high-interest postal account and were overwhelmed. After the term, the account becomes one of their internet accounts. The interest rate is not good, so I'll probably be closing it as soon as I get internet access to it.

But still, a grand a month into a 7% account is pretty good. Pretty good indeed.