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Regularly Beat the Best Savings Account Rates Discussion Area

edited 30 November -1 at 1:00AM in Savings & Investments
214 replies 72K views
Former_MSE_DanFormer_MSE_Dan Former Web Editor
1.6K posts
edited 30 November -1 at 1:00AM in Savings & Investments

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Regularly Beat The Best Savings Account Rates Article

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MSE Web Editor, mainly responsible for looking after, and keeping up-to-date, ‘hard-core’ financial articles such as credit cards, savings and loans.

If you spot a rate change that we haven't already mentioned or added into articles or tips, Please send me a PM about it




Don't miss urgent MoneySaving, hear first by getting Martin's Money Tips Free E-mail at www.moneysavingexpert.com/tips
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Replies

  • can anybody explain me what martin means with dripfeed.
    across bit by bit from top savings to top regular saver
    ?????
    betabraga :p
  • Former_MSE_DanFormer_MSE_Dan Former Web Editor
    1.6K posts
    OK, if you pick the Leek United account, you can put up to £250 in it each month. So, if you have £3,000 in savings, the dripfeed technique is the best way to maximise the interest you earn.

    To do it, have the £3,000 in a top paying instant access savings account. Set up a monthly standing order of £250 to the regular saver, so that over the period of a year, the whole £3,000 will be fed across into it.

    That way, you earn high interest on all of the money, all of the time.

    HTH

    Dan
    MSE Web Editor, mainly responsible for looking after, and keeping up-to-date, ‘hard-core’ financial articles such as credit cards, savings and loans.

    If you spot a rate change that we haven't already mentioned or added into articles or tips, Please send me a PM about it




    Don't miss urgent MoneySaving, hear first by getting Martin's Money Tips Free E-mail at www.moneysavingexpert.com/tips
  • Apologies for being so thick about this but I'm still not sure I know how to drip feed from one high interest savings account into an even higher interest regular savings account. I have an ICICI HiSave savings account and was told by them that I can only transfer money out of it into my 'nominated current back account'. How do I get them to allow me to ALSO transfer money by direct debit to another savings account such as the Leek Building Society's regular saver? Can anyone help please?!
  • Beware of these drip feed accounts.
    Their advertised rate of interest is not the real value of what you think you will be getting as you are drip feeding.
  • RayWolfeRayWolfe Users Awaiting Email Confirmation
    3K posts
    They are EXACTLY as they are advertised.
    If people to not know what "x% per annum" means, they should stay indoors and not venture into the big wide world.
  • Hi, I just wanted to clear up the confusion on this matter once and for all! You DON'T get the full rate (eg 12% on A+L), but you DO get about half of each savings a/c rate added together! So for example :

    ICICI @ 5.8% (half=2.9%)
    Regular Saver @ 12% (half=6%)
    So total = 8.9% gross (This is roughly the actual equivalent total interest you get on the £3000 that is drip fed throughout the year).

    How do I work this out? Well, it's simple if you draw a table from 1 to 12 and work out the interest on each a/c each MONTH (i.e. yearly interest on that month's balance divided by 12, or divide by 365 then X 30). Then if you add each monthly interest up you get a total annual figure for each a/c. When you add the two together you realise that your £3000 has worked harder than if just left in the ICICI alone, and especially if just put into the regular saver alone (which only nets you HALF the advertised rate!).

    It does your head in at first, but eventually it makes sense! It's just whether you can be bothered arranging it all.
  • P.S. I think these regular savers are very cunning, because alot of people won't drip feed them from high-interest savings (just their current a/c) and therefore will only actually get half the interest. I am using Saffron's e-saver because you can use up to 5 accounts linked to it!
  • bristolleedsfanbristolleedsfan Forumite
    8.4K posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
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    xmrb2006x wrote: »
    P.S. I think these regular savers are very cunning, because alot of people won't drip feed them from high-interest savings (just their current a/c) and therefore will only actually get half the interest. I am using Saffron's e-saver because you can use up to 5 accounts linked to it!

    u will find those that are drip feeding from current accounts are getting relatively high interest from their current accounts, out of interest which saffron e-saver do u have issue 1 or the reduced interest rate issue 2
  • Hi, I have e-saver issue 1 (5.6%). But, doh, you're right, halifax is doing 6.17% AER current account up to £2500, I could just as easily do from there! Wonder what the highest current account is at the moment?
  • MJMumMJMum Forumite
    580 posts

    Don't see the point anymore in offering advice to people who only want to be agreed with...
This discussion has been closed.

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