Regular Savings Accounts

Archi_Bald

You can have all 3, no probs.

YorkshireBoy

planteria wrote: »

does having an HSBC or First Direct account cause a problem, or are you still regarded as a 'new' customer?

Not at all. I even switched a HSBC account to them for my £100 gift card!

cheexy

veryintrigued wrote: »

The last four letters of your userid are very apt for the misinformation above.

Oh Snap!!! Lol

planteria

thanks guys. i found First Direct very reluctant to open an account for me a few years back... and was never sure whether that was because i had previously had an account with them, or whether it was because i was so in bed with HSBC.

polymaff

planteria wrote: »

i do understand 'the problem' that some people have with Regular Saving Accounts, and overall, i'm not a great fan. i have found them to be more hassle than they are worth in some cases...

but, lately i have usually been feeding into them from interest-generating current accounts, and using them to generate a small lump sum for a specific purpose, such as to clear a 0% credit card balance.

I hope that my fleshing out may have helped them see the error in their thinking. As you say, a Regular Savings account is best funded from regular income - and we do exactly that.

Herbalus

polymaff wrote: »

I hope that my fleshing out may have helped them see the error in their thinking. As you say, a Regular Savings account is best funded from regular income - and we do exactly that.

For every 1% that your regular saver is above your other savings accounts rates, your average rate for the whole amount you would invest in a Reg Saver in one year (so £3600 with FD) rises by about 0.54%*.

So having £3600 at 3% and moving £300 per month to 6% would give you a return equal to that of £3600 at 4.62%*. So if your Santander 123 is full, moving some across to FD Reg Saver each month is a substantial rate increase.

*my spreadsheet is at home, but I think that's about right.

polymaff

Herbalus wrote: »

For every 1% that your regular saver is above your other savings accounts rates, your average rate for the whole amount you would invest in a Reg Saver in one year (so £3600 with FD) rises by about 0.54%*.

So having £3600 at 3% and moving £300 per month to 6% would give you a return equal to that of £3600 at 4.62%*. So if your Santander 123 is full, moving some across to FD Reg Saver each month is a substantial rate increase.

*my spreadsheet is at home, but I think that's about right.

That figure, roughly midway between 3 and 6%, sounds about right as you are regularly saving at 6% and regularly unsaving at 3%.


BTW, anyone remember SAYE (Save as you Earn) accounts? They were regular accounts, and carried special benefits at one time - but their name might make it easier for those confused about today's Regular Saving accounts to understand how the latter are best exploited.

Bearandbull

I am truly amused!

Frogletina

polymaff wrote: »

BTW, anyone remember SAYE (Save as you Earn) accounts? They were regular accounts, and carried special benefits at one time - but their name might make it easier for those confused about today's Regular Saving accounts to understand how the latter are best exploited.

I loved my SAYE account. I saved £10 a month which was a lot for me at the time but the balance of it when it matured was very useful.

Later I took out index linked savings certificates, I thought that saving income in the good times would be useful in the future. I had the idea of cashing them in during the lean times, but then they stopped selling them.

I also moved into ISAs and a TESSA. My TESSA became a TESSA ISA and paid off my mortgage early.

Now I use regular savings accounts, which are now at better interest rates than ISAs, but I imagine when they mature I'll not get such good rates.

frogletina

fiesta04

Appears that OP can only post on Wednesdays. Must be his day out!!


F4