Regular Saver

Julia21

Hi all,

I wonder if any of you know the answer to this question.

I have a regular saver with HSBC with £1,750 currently paid in over 9 months. I only read yesterday that as I haven't paid the maximum amount in that I could have within those 9 months, I could now increase my monthly standing order to make the total balance up to £3,000 over the next 3 months.

I was wondering if I start a new regular saver when this one finishes, if I could put £2,725 into it in the first month and then pay £25 in each month thereafter to maximise the interest I will receive at the end. I don't think this is possible but I thought I'd just double check.

Thanks in advance to anyone who replies!

Julia :j:rotfl::T:beer:

planteria

my understanding is that no, you wouldn't be able to do that. the max you can pay in each month is £250 from the start.

bsms1147

As far as I'm aware, these products allow a maximum of 1/12 of their balance to be paid in each month, but this is cumulative.

eg With the HSBC Regular Saver you are allowed to pay in a 'maximum' of £250 a month. However as this can be 'carried over' to subsequent months, that's not strictly true. What they mean is that the total you can pay in increases by £250 each month.

Many will pay in £250 a month.

But if you pay in nothing in month 1, you can pay in £500 in month 2. If you also pay in nothing in month 2, you can pay £750 in month 3, etc.

If you pay in £100 in month 1, you can pay in £400 in month 2, etc. The £150 you didn't pay in in month 1 was carried over.

So for you, at 9 months you have a maximum allowed in your pot of £2250 (but only £1750 actually in it), by your tenth payment the pot will be £2500. Personally I'd pay in £750 as the next payment to bring your pot to the maximum allowed at that point, then revert back to £250 a month for the final two payments, which will maximise your interest.

So unfortunately your plan won't work, otherwise we'd all bung near £3,600 in FirstDirect for 6% over the whole year.

Julia21

Thanks for the helpful replies. This is exactly what I assumed bsms1147 but just wanted to be 100% sure