making the most of First Direct regular saver?

HarpoonJoe

I've just moved over to First Direct and I've still got around 3k sitting in a santander account.

The FD regular saver gives 6% for with monthly payments from £25 to £300. I was thinking of saving around £250 per month. I understand that I'll get approximately 3% return.

What I was thinking was , for example, to set up ten of these accounts, make the initial payment £300 each, then reduce the following payments to £25 each.

In my mind this would mean I'd be getting 6% on my original £3k saving plus I would be making further monthly savings totalling £250 which would give me nearly 3% on that remeinder.

I've not done the exact sums yet but I'm guessing this will give me an equivelent interest rate of approx 4.5%. Is this right or am I missing something?

guymo

You're only allowed one Regular Saver. Look under "what else should I know?" on https://www1.firstdirect.com/1/2/savings/regular-savings-account

badger09

HarpoonJoe wrote: »

I've just moved over to First Direct and I've still got around 3k sitting in a santander account.

The FD regular saver gives 6% for with monthly payments from £25 to £300. I was thinking of saving around £250 per month. I understand that I'll get approximately 3% return.

What I was thinking was , for example, to set up ten of these accounts, make the initial payment £300 each, then reduce the following payments to £25 each.

In my mind this would mean I'd be getting 6% on my original £3k saving plus I would be making further monthly savings totalling £250 which would give me nearly 3% on that remeinder.

I've not done the exact sums yet but I'm guessing this will give me an equivelent interest rate of approx 4.5%. Is this right or am I missing something?

What you're missing is that you can only have 1 Regular Saver account

ColdIron

HarpoonJoe wrote: »

I understand that I'll get approximately 3% return

You will get exactly 6% pa on the money that is within the account but not all of it will be there for the full 12 months

The money that is not in the account will probably not be idling away gaining 0% interest though, have a look at the Regular Savings Calculator using the drip feed option
http://www.moneysavingexpert.com/savings/best-regular-savings-accounts?_ga=1.229349724.1775222643.1414501162#savingscalc

B_G_B

I once mulled over the idea of opening 12 of these, one month apart, then each month after the first year, the maturing one would be split equally to fund the other 11, plus open a new one. Once set up, this would earn 6% gross on up to £23400.

Sadly, as others have stated, only 1 account allowed.
Ho hum, I’ll have to come up with another master-plan.

Vortigern

badger09 wrote: »

What you're missing is that you can only have 1 Regular Saver account

Use your spouse. Both partners in a joint account can have a regular saver.

YorkshireBoy

HarpoonJoe wrote: »

I've still got around 3k sitting in a santander account.

Why not get it all making 5% AER straight away by using TSB Plus and Nationwide FlexDirect?

Unless you already have those and they're maxed out?

HarpoonJoe

Damn, thought it was too good to be true.

@YorkshireBoy Thanks for the heads up, I'll look into those