Regular savers - £3k / £250 ... why?

RayWolfe

xmrb2006x wrote: »

I'm not so sure when you remember that the customer only gets HALF the advertised rate!

Please stop spreading this myth! The bank has only HALF the money; it pays the FULL rate.

Ian_W

Ray's right - that myth is tripe!!

If you're are using a regular saver to save up then at 8% you'll get twice as much interest as a bog standard account paying 4% - you won't get it on the full £3K because the average balance thro' the year is actually half of that. But the same applies to any other account you save into.

If you're drip feeding it from existing savings then in round figures £1500 will earn the RS interest and the other £1500 will earn what your normal saver account pays so if the RS pays 8 and the normal saver pays 6 - the £3K will earn 7% over the year, less any interest lost by transfers.

Much better IMHO though are the 2 yr deals like the demised LTSB one and the open ended, but cash limited, one from YBS.

RayWolfe

Ian_W wrote: »

Much better IMHO though are the 2 yr deals like the demised LTSB one and the open ended, but cash limited, one from YBS.

Ian, don't forget the other open ended but cash limited RSs:
Loughborough 8%
Bath 6.5%
Scarborough 6.3%
Principality 5.95%

But you're right that YBS is currently the best.