Regular Savings Accounts: The Best Currently Available List!

Christal_2

No worries Joscar, I understand what you are trying to say, what I meant was just to compare simply put all the money in a Feeder account or in a RS account, at least that's what I meant in my first post which is on page5.

On the other hand, if you say paying 250 over 12 months the average will be 1500 and you use 1500 to make the simple calculation of the interest it's fine, but you still have to compare it with putting 3000 to the Feeder account in the begining not 1500, cause over the year, the total amount you put in the RS account will be 3000, not 1500.......hope I have explained this clearly.

oldfella

Say you start with the Lloyds TSB RS account which pays 8% and you can pay in a total of 3500 in a year, you will only earn interest of 170 over the year.

But if you put all 3500 into the Sainsbury's account which pays 6.25% at once, over the year you can earn interest of 218.

---

you are missing the point - the money that is fed into the Lloyds RS comes from the Sainsbury account

and if you bought last years Lloyds RS you would be even better off because you can leave it in the account for 2 years, so in the second year you earn 8% on an average balance of £5000 (you can start the account with a £500 balance).

This is why the YBS RS is so good, there is no time limit, just a maximum balance of £20,000

ctdctd

Christal wrote: »

Say you start with the Lloyds TSB RS account which pays 8% and you can pay in a total of 3500 in a year, you will only earn interest of 170 over the year.

But if you put all 3500 into the Sainsbury's account which pays 6.25% at once, over the year you can earn interest of 218.

If you put £3500 into Sainsbury's and use it to feed Lloyds, you will earn about (£3000 x .0625 / 2) + (3500 x .08 * 6.5/12) = £239 before tax.
Only 3000 in Sainsbury's as the first £500 goes straight to Lloyds - and the 6.5/12 calculation is about right for a 12 month regular saver.

tiptoe_mouse

Kazza242 wrote: »

You do still need to open a LTSB current account. You can just keep £1 in the current account.

I still have a balance of zero on my LLoyds TSB current account. Should I feed some money through it in case they refuse to pay me my 8%?

tiptoe

Kazza242

tiptoe_mouse wrote: »

I still have a balance of zero on my LLoyds TSB current account. Should I feed some money through it in case they refuse to pay me my 8%?

tiptoe

I don't think you need to feed money through it to receive 8% interest from the monthly saver. Though you do need to ensure that the LTSB current account remains open to receive the 8%. Keeping the balance at £0.00 does run the risk of them closing the current account. To be on the safe side, it's best to keep at least £1 in the current account at all times.

quill_2

[quote=Kazza242;6068971__Keeping_the_balance_at_£0.00_does_run_the_risk_of__them_closing_the_current_account._[/quote]
Mine's quite happily sat at zilch for the last 9 years and not ben closed.

Kazza242

quill wrote: »

Mine's quite happily sat at zilch for the last 9 years and not ben closed.

Yes, but you have to take into account that tiptoe_mouse opened the LTSB current account to qualify for their 8% monthly saver. If the terms and conditions for the account are not met then LTSB do reserve the right to pay interest at the Guaranteed Tracker account rate - a dismal 3.65% - instead of paying 8%.

I wouldn't want to risk that, so to be on the safe side I'd recommend maintaining the minimum current account balance of £1 to ensure that it is kept open (and 8% interest is paid for the monthly saver).

Exceller8

Target saver 3 latest rate from 1st August = 7.15%

The_Fiddler_2

Exceller8 wrote: »

Target saver 3 latest rate from 1st August = 7.15%

With which establishment?

bristolleedsfan

The_Fiddler wrote: »

With which establishment?

ipswich BS. http://www.ibs.co.uk/savings_regular.php?sub_area=regular