Savings accounts... are they really worth it?

gil13

Afahmaep wrote:

I'm up to 27 Regular Savers with the Skipton BS Christmas offering starting next week bringing it up to 28. This will be the 5th provider with 2 separate offerings the others being Abbey (7% & 7%), Ipswich BS (7.25% & 8.25%), Principality BS (6.00% & 6.50%) and Yorkshire BS (6.00% & 6.75%). Total amount going IN each month has reached £7895.00.
I use 5 bank accounts to service them with overdraft facilities of about £5.5k and hopefully HSBC will grant a raise from zero shortly.
Have had NO problems as yet although things look a bit scary come April when funds which would normally mature STAY IN for the longer haul. (Scarborough BS, Lloyds etc) but if push came to shove they could be withdrawn.

Wow!
have you worked out how much you have put it and how much interest you are taking out, I know this is not an exact science as the interest makes it an ever-changing picture, but roughly what would you guess those 27 accounts net you in a year. It is some effort that's for sure.

BSingh

Hi

Tomstickland…. I think you hit the nail on the head when you say that “A savings account isn't really supposed to be an income generator. It just keeps your funds up with or above inflation whilst you save them.” That effectively what savings account do

Graham_Devon… what I was referring to was that say if you have got a couple of grand in an online saver between £5k and £20K, etc…. this might give you more returns if you invest this into a property that you can afford (maybe buying it with a partner or partners!) This may give you more money back rather than just above the inflation figure.

All in all… it seems like a lot of hassle, as you always run into problems, you may need to make phone calls, etc. I guess the question we may need to ask is that is it worth all this time? And Time is money

I guess I am also talking with the assumption that you have got some security in terms of a house your living in.. your financial situation is good (no debts to pay, etc). If you have this, then we may need to move from the “Saving” …. And into the “investment” as the title of this forum suggests

Afahmaep

Quote:
I'm up to 27 Regular Savers

Judi wrote:

How many? :eek:

Afahmaep wrote:

These are some of the ones I HAVEN'T got. REASON Pretty obvious. The Rates are CRAP

5.35% REG SAVER 20-200 PM Dunfermline
5.35% REG SAVER 10-500PM Saffron
5.35% REG SAVER 10-250 PM Coventry*
5.20% REG SAVER 20-500 PM Leeds
5.15% REG SAVER 10-1000 PM Tipton & Coseley
5.10% REG SAVER 10-1000 PM Newcastle
4.95% REG SAVER 20-500PM National Counties
4.95% REG SAVER 10-250PM Nationwide
4.75% REG SAVER 10-500 PM Melton Mowbray*
4.75% MONTHLY SAVER 10-1000 PM Catholic*
4.65% REG SAVER 25-500 PM Mansfield, The*
4.65% REG SAV 40-2000 PM West Bromwich
4.65% MONTHLY SAVER 10-500 PM Earl Shilton*
4.50% REG SAVER 25-500PM Kent Reliance
4.50% REG SAVER 10-2000 PM Dudley
4.45% REG SAVER 10-500 PM Market Harborough
4.20% REG SAVERPLUS 10-250PM Universal*
3.66% REG SAVER 10-100 PM Loughborough*
2.90% ECO 60 (60 DAYS) Ecology, The*

Well done Nationwide! 6.25% now. One more please and I'll have 30

Graham_Devon

BSingh wrote:

Hi

Tomstickland…. I think you hit the nail on the head when you say that “A savings account isn't really supposed to be an income generator. It just keeps your funds up with or above inflation whilst you save them.” That effectively what savings account do

Graham_Devon… what I was referring to was that say if you have got a couple of grand in an online saver between £5k and £20K, etc…. this might give you more returns if you invest this into a property that you can afford (maybe buying it with a partner or partners!) This may give you more money back rather than just above the inflation figure.

All in all… it seems like a lot of hassle, as you always run into problems, you may need to make phone calls, etc. I guess the question we may need to ask is that is it worth all this time? And Time is money

I guess I am also talking with the assumption that you have got some security in terms of a house your living in.. your financial situation is good (no debts to pay, etc). If you have this, then we may need to move from the “Saving” …. And into the “investment” as the title of this forum suggests

Yes can see where your coming from. But it doesnt really add up, especially at the current time.

Say you have 20k in a savings account. This rises every month along with inflation. You have access to it if you need it.

Say you invest it into a house. 20k is going to get you no where. Therefore you would need up to 10 partners. And then your relying on the house increasing in value. You have to pay for all the maintainance etc also.

Then you sell the property, split the profits between 10, you may have to pay captial gains tax etc...

This is only any good if you have enough savings to take the risk.

Savings accounts ARE worth it. I think anyone would be stupid to invest ALL their cash. So where the bit they want to hold onto going to sit? In a savings account...

Eck

Ok guys you lot seem to know your stuff :rolleyes: if you had £30k to put into saving/savings accounts, where would you put it?
I say savings accounts as i might need to access the money pretty sharpish, then again i might not.

Graham_Devon

ICICI, ICESAVE or A&L Direct Saver (be prepared for long clearing times).

I'd put 25k in A&L (withdrawal penalty) and 5k into one of the other accounts so that I got 5k I can get to without a penalty. A&L should raise their advertised rates hopefully at the end of the month. If they don't, then I wouldnt bother with them.

Paul_Herring

i might need to access the money pretty sharpish, then again i might not.

All of it? Some of it?

I have my savings spread all over the place from (in decreasing order of accessability) IceSave , through cash ISAs, investment ISA's, Zopa and a pension fund. Depending on 'how sharpish' and 'how much of it', I'd spread #30K between all but the pension. The exact proportions depending on the answers to the two How questions.

Afahmaep

gil13 wrote:

Wow!
have you worked out how much you have put it and how much interest you are taking out, I know this is not an exact science as the interest makes it an ever-changing picture, but roughly what would you guess those 27 accounts net you in a year. It is some effort that's for sure.

I've just worked out with the March payments just gone in the total GUARANTEED returns and it works out to 6.73% GROSS. I am sure there are others with a higher figure if they have the Barclays or A & L offerings. It is not as impressive as you might expect but still beats any single product even the recently announced 6.20% Bond announced by Principality BS. Remember the accounts with the highest returns often limit the amounts to be put in. The Regular Savers at the bottom are qualifying accounts for membership and is why their total deposits are low and just over the £100 threshold.

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MARCH

1 8.45% £2,000.00 £169.00
3 8.00% £8,500.00 £680.00
2 7.50% £1,750.00 £131.25
1 7.35% £1,000.00 £73.50
1 7.25% £1,100.00 £79.75
1 7.05% £450.00 £31.73
5 7.00% £16,500.00 £1,155.00
1 6.90% £500.00 £34.50
2 6.50% £2,000.00 £130.00
1 6.30% £4,250.00 £267.75
3 6.25% £4,000.00 £250.00
5 6.00% £18,900.00 £1,134.00
1 5.95% £3,000.00 £178.50
1 5.85% £350.00 £20.48
1 5.45% £130.00 £7.09
1 5.40% £140.00 £7.56
1 5.10% £120.00 £6.12

31 £64,690.00 £4,356.22 6.73%[/HTML]