Any decent Regular Saver ISAs available?

Rockula

For those without a lump sum to invest and are looking to save on a regular basis, I've found in the past that Regular Saver ISAs can often offer great rates that can sometimes beat the market-leading easy-access variable rates (as long as you are prepared to stick to the terms). However, they don't seem to be promoted very much.

Around this time last year, I opened a Newcastle Building Society Balance Builder ISA which offered instant access and a rate of 3.4% (subject to regular payments and the account remaining open for 12 months) AND also offered the option to transfer-in previous ISAs which benefit from the same rate of interest. Great rates with the added convenience of only having to manage one account!

Newcastle don't appear to be offering the same product this year, so does anyone know of any good Regular Saver ISA deals, preferably with the ability to transfer-in as well? As a Halifax Reward account customer, I realise I can get 3.2% with their Direct ISA Reward account, but given the popularity of that product at the moment, I thought I'd check to see if there are any similar, less well-known Regular Saver ISA options. Thanks.

steady__eddie

Manchester B.S. are doing a regsave I.S.A. @ 4% but I don't think that you can transfer anything in. Sorry but I can't post a link.

Lokolo_2

steady__eddie wrote: »

Sorry but I can't post a link.

Link to the account details is here :j

scottishblondie

Principality BS have had good regular saver ISAs the last 2 years. They released them a few days into the new tax year. I think it was on the 10th last year. However, the previous issues did not allow transfers in.

KTF

Bear in mind that over the term of a Regular saver you get approx half the advertised interest rate so the Manchester BS one will only earn about 2%...

blueberrypie

If you're willing to tie up your funds for two years rather than one, it might be worth considering the LTSB two-year fixed ISA. It does allow transfers-in, and unlike most fixed-rate ISAs, it does allow further payments in. You could use it as a Regular Saver, but with the option of varying your payments more than with a normal Regular Saver - there's no requirement for a payment every month, but you could put in the full 11/12 allowance in the first month if you wanted, or fund it with a bit every three months, or whatever. The rate is 3.6% fixed for two years (the Manchester one is variable, I believe). It won't suit everyone looking for a Regular Saver, but for some, it could be a good option.

steady__eddie

I can see a possibility here now that LTSB are restructuring the Classic with Vantage A/C. to 3% ON £5k. I think I may close one of them and transfer to this. I was only using it as a savings a/c. and it will save me 20 seconds every month shuffling £1K around.
I wonder what the difference is between 3.6% net on £5340 and 3% gross on £5k ?

le_loup

KTF wrote: »

Bear in mind that over the term of a Regular saver you get approx half the advertised interest rate so the Manchester BS one will only earn about 2%...

No. You get the full rate. You may get half the interest compared to the amount you would get if you had the money in the account for a full year.
Sorry if that sound pedantic but there is enough ignorance out there without adding to it.

realaledrinker

KTF wrote: »

Bear in mind that over the term of a Regular saver you get approx half the advertised interest rate so the Manchester BS one will only earn about 2%...

Absolute rubbish!

You need to compare the interest earned to the average balance over the year, not the balance at the end of the year.

Say an ISA pays 4% and I subscribe £100/month. You ear a full 4% for 12 months on the £100 subscribed on say 6 April but only 4% for one month on the £100 subscribed the following 6 March. Overall interest = around £24; average balance around £600 - interest received 4%

KTF

Ok, so I should have worded it better but the end result is the same.

Using your example, a £1200 lump sum in an account paying 4% will get you £48 and as you show the regular saver will get you half that.

It was more to point out that although some regular saver ISAs appear to have a higher rate than instant access ISAs, the return that you get might not be greater.

AirlieBird

KTF wrote: »

Ok, so I should have worded it better but the end result is the same.

Using your example, a £1200 lump sum in an account paying 4% will get you £48 and as you show the regular saver will get you half that.

It was more to point out that although some regular saver ISAs appear to have a higher rate than instant access ISAs, the return that you get might not be greater.

Yes, but the OP said "For those without a lump sum to invest". If you only have £100 a month to deposit into a Cash ISA, a regular saver ISA paying 4% will stay give you more interest than a instant access cash ISA paying 3%.