Regular Savings Accounts

ies2000

The simple fact is that drip feeding from a high interest account such as cahoot 5.65%, Birmingham Midshires 5.4% or even the poorer ING Direct at 5.0% is not that wonderful as you lose out earning interest for at least 3 days EVERY month while your money is being transferred (and 5 days if it goes through a weekend and even longer if it 'conveniently' gets lost!!!). It disappears into the 'Banking Back Hole' where everyone denies earning any interest from it!! YEAH!!!!

So the bottom line is don't be deceived by the 7.0% as in reality it is hardly worth it as the max you can invest is £500 a month with Abbey and £250 with Halifax.

Robert_Sterling_3

I do not get very hot under the collar at losing 2p per hundred pounds per day.

deemy2004

The simple fact is that drip feeding from a high interest account such as cahoot 5.65%, Birmingham Midshires 5.4% or even the poorer ING Direct at 5.0% is not that wonderful as you lose out earning interest for at least 3 days EVERY month while your money is being transferred (and 5 days if it goes through a weekend and even longer if it 'conveniently' gets lost!!!). It disappears into the 'Banking Back Hole' where everyone denies earning any interest from it!! YEAH!!!!

So the bottom line is don't be deceived by the 7.0% as in reality it is hardly worth it as the max you can invest is £500 a month with Abbey and £250 with Halifax.

the loss of 3 days is only once for each £500 transferred. And thus the loss is 3 days in TOTAL for the whole sum transferred during the 12 months.

cloud_dog

Guys, I think were loosing track of the benefits by trying to define absolutes.

Take me, I (we) have money in ING, we also have surplus cash from our monthly income lets say £900. Normally I sweep this into the ING but I will now be seeping the maximum into Abbey FRS and the remainder to ING.

So for someone like me I have to transfer the money to somewhere so I loose a few days interest no matter where it goes. The bottom line is that the Abbey FRS is a very good rate - 2% above ING.

I will be astonished if anyone gets the full interest rate for one year anywhere (unless they invent a year with 368 days). The reason is simple you have to deposit your money therefore (even as a one off deposit) you loose three to five days interest.

cloud_dog

crana9

unless of course you deposited it as cash ::)

Mowgli_3

I currently have a flexible mortgage with Virgin One account. I am paying 5.95% interest and can access money at any time.

Would drip feeding a regualr amount into a 7% savings account give me a net profit as a standard tax payer? Or a profit worth the effort?

I aasume I would have to pay tax on the 7% and I am not sure I would be left with a net gain.

jltnichols

Can anyone confirm which account they used when signing up to the Lloyds Monthly Saver? I looked at the one Martin recommends - the Classic Plus - but this needs £1000 to be paid in a month.

Is it, in fact, the Classic Account that people have signed up to? Apart from the pitifully low interest, there seems to be nothing bad about it.

Thanks,

Jack

Riviera_Kid

jltnichols wrote:

Can anyone confirm which account they used when signing up to the Lloyds Monthly Saver? I looked at the one Martin recommends - the Classic Plus - but this needs £1000 to be paid in a month.

Is it, in fact, the Classic Account that people have signed up to? Apart from the pitifully low interest, there seems to be nothing bad about it.

Thanks,

Jack

Yep just go for the basic classic account

DoubleEntry

First post here so if I'm way off line please don't bite me!!!

Now that A&L are offering a 5.64% Direct Saver is it still worthwhile bothering with 7% or less Regular Savers?

By my figures a £3k lump sum in a Direct Saver gives gross £169.

The same sum drip fed from a 5% Savings Account into a 7% RS gives gross £175 (allowing 3 days per month for transfer).

£6 pa doesn't seem like a lot for the effort involved - or am I missing part of the scheme?

Thanks for any help.

heppy23

DoubleEntry wrote:

First post here so if I'm way off line please don't bite me!!!

Now that A&L are offering a 5.64% Direct Saver is it still worthwhile bothering with 7% or less Regular Savers?

By my figures a £3k lump sum in a Direct Saver gives gross £169.

The same sum drip fed from a 5% Savings Account into a 7% RS gives gross £175 (allowing 3 days per month for transfer).

£6 pa doesn't seem like a lot for the effort involved - or am I missing part of the scheme?

Thanks for any help.

I tried doing the same calculation for what I am doing for my son (moving £50 per month from his YBS one day account into a halifax regualar saver) and it was worth about £6 per year more to do it. That means twelve trips into town to transfer £50 to my current account to cover the standing order.

Looking back I wouldn't have bothered.