Regular Savings Accounts

jamesd

DoubleEntry wrote:

A&L are offering a 5.64% Direct Saver is it still worthwhile bothering with 7% or less Regular Savers? ... 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 ... £6 pa doesn't seem like a lot for the effort involved

It's more like an 18 improvement on 169, 10% more. Up to you to decide if a 10% higher return is worth having for the cost of opening an account or two and setting up some regular transfers.

The 5% and 7% give an average of 6% (ignoring it really being 6.5 months not 6 at the higher rate and ignoring transfer time). 6% - 5.64% = 0.36% and on 3000 that's 10.80 more for the pair of accounts.

But you're unfairly penalising the pair solution by using a savings rate that's too low. A former best buy, the Bradford and Bingley eSaver is currently paying 5.35% and the best payers are delivering 5.45%. Possibly some fiddling around with minimum balances changing interest rates for the last few months in there but I'll ignore that for the moment.

The average rate of 7% and 5.45% is 6.225%, less 5.64% is 0.585% and on 3000 that's 17.55 more from a pair of accounts than from the single account.

jamesd

Mowgli wrote:

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?

You would lose money. You need 7.44% to be better off in a savings account.

Your best move is probably to get rid of that lousy mortgage deal. The One Account is one of the worst buy normal rate mortgages there is in money saving terms, unless you're both paying in and taking out 30-50% of your total mortgage amount every month. If you're paying it in and leaving it there, a normal flexible mortgage or normal offset mortgage will save you a lot of money.

sashacat

I've just opened an A&L direct saver giving 5.65% interest. Is it worth my while linking it with any regular saver....does anyone know? I have a regular saver with A&L and one with HSBC....and can't work out which is the best deal. Thanks

masonic

sashacat wrote:

I've just opened an A&L direct saver giving 5.65% interest. Is it worth my while linking it with any regular saver....does anyone know? I have a regular saver with A&L and one with HSBC....and can't work out which is the best deal. Thanks

What do you mean by 'linking'? You wouldn't want to make transfers from the direct saver to a regular saver as you would lose a months interest on the balance within the direct saver each time.

ViksB

I am trying to find out which regular savings accounts do not require you to open a current account with them.
I can only find norwich and peterborough
and Skipton (from 15th Jan)
Are there any others?
Thank you
Viks

DawnW

ViksB wrote:

I am trying to find out which regular savings accounts do not require you to open a current account with them.
I can only find norwich and peterborough
and Skipton (from 15th Jan)
Are there any others?
Thank you
Viks

I opened one with the Britannia back in November. Not sure if this is still available, but might be worth a look? I didn't need to open any other account with them and the AER was 7% I think.

Dan29

I'm in the process of opening the Britannia one but think it might be closed to new applicants now. Here are some more:

Ipswich 7.25%
Chorley 7.25%
Halifax 7%
Abbey 7%
Yorkshire 6.75%
Principality 6.5%
Scarborough 6.25%
Bath 6.25%
Monmouthshire 6%
Leek United 6%

Afahmaep

ViksB wrote:

I am trying to find out which regular savings accounts do not require you to open a current account with them.
I can only find norwich and peterborough
and Skipton (from 15th Jan)
Are there any others?
Thank you
Viks

If you are thinking about the 8% Regular Saver from NPBS then it does require you to to have a Gold Current Account paying in £1000 Per Month. And it is non-repeatable.

Dan29

Also, although you need a current account for the Lloyds TSB 8% RS, you don't need to "operate" the current account, just make sure you open a Classic account rather than Classic Plus. Then just keep £1 in there - no need to pay in regularly.

Innys

Dan209 - are you sure about the interest rate you have quoted on the chorley RS? When I click on your link, the rate quoted on the Chorley Premiership Regular Saver is 7.00%, not 7.25%.