£800 a month for 5 years

xylophone

HSBC Advance http://www.hsbc.co.uk/1/2/current-accounts/hsbc-advance

First Direct http://www1.firstdirect.com/1/2/savings

Marks and Spencer http://bank.marksandspencer.com/banking/current-accounts/existing-customers/#monthly-saver?WT.mc_id=MASM_RET_14_CAML

If the OP were accepted for their current accounts, then the associated 6% Regular Savings accounts would be available.

Archi_Bald

MarkBargain wrote: »

It'd take a big effort though, opening several bank accounts (presuming they all accept you after their credit checks) and then meeting the requirements for paying money in, setting up direct debits etc, then closing some accounts a year later when the short term rates expire. The Santander 123 is worth doing at 3% for £20K (less £5 a month fee, plus any bills cash back) but I never bother with the others.

Steady on. Do you actually understand how the 6% regular savings accounts work?

It's probably perception whether applying for 3 current accounts is a big effort - I don't think it is. Paying the required money in (and taking out any surplus money) would be just a matter of setting up SOs. Not sure where Direct Debits come into it as none of the 6% Regular Savings accounts, or their pre-reqs, needs any DDs. Nor am I sure why you'd want to close any of the accounts once you got them, and I don't know what short term rates you are referring to.

I also totally disagree that the Santander 123 is worth doing for someone who just wants to save £800 a month. It certainly is not for at least 12 months, and even then there are likely to be a lot better alternatives around at the time.

MarkBargain

HappyMJ wrote: »

A big effort that is well worth the time spent.

Opening a HSBC, First Direct and Marks and Spencer current account then creating a standing order from your own actual current account to send money to those accounts which send money to the regular saver account is well worth it.

I also set up donor current accounts and switched them using the switching service and made another £500 or so in switching bonuses. This requires you set up a Tesco Instant Access savings account and a Tesco Online Saver and set up 3 new current account with another bank. I set mine up with Halifax. You then set up a direct debit to pull a couple of pounds from Halifax to Tesco then the three new current accounts at the Halifax will eventually be switched to the HSBC, First Direct and Marks and Spencer.

Easy money. Can be done in a few hours a week spread over about a month. I now have 20 current accounts, 6 regular savers and 8 saving accounts. I've been making on average £50 per week for less than 2 hours of effort for quite a long time. Most of the 2 hours is spent on researching offers.

A S&S ISA is risky but so is property ownership. The flat I am currently renting was purchased for £130,000 and it's now only worth £100,000 after 10 years.

20 current accounts?! Hats off to you.

The switching bonuses are well worth picking up.

I know the banks do credit checks, so I wondered if the banks would allow so many accounts to be open as they all want to be your 'main' current account.

MarkBargain

Archi_Bald wrote: »

Not sure where Direct Debits come into it as none of the 6% Regular Savings accounts, or their pre-reqs, needs any DDs. Nor am I sure why you'd want to close any of the accounts once you got them, and I don't know what short term rates you are referring to.

The direct debits are usually required to get the switching bonuses.

As for short term rates, HSBC regular saver states "You can save up to £3,000 at a great interest rate that's fixed for 12 months - either 4% or 6% AER/gross". First Direct states "6.00% AER/gross fixed for 12 months". They may still be worth doing for some, but it seems the attractive rates do not last long.

Archi_Bald

MarkBargain, your latest two posts confirm that you don't know much about switching, multiple current accounts and/or interest paying accounts. Plenty of people on here, me included, have years of experience with it, and often have a few dozen current accounts, alongside the Regular Savings accounts.

MarkBargain wrote: »

The direct debits are usually required to get the switching bonuses.

there's no such thing as "usual" - - each switch offer has its own T&Cs. Some require DDs, some don't. In any case, getting any required DDs is childs play. And what's more important, you don't need to switch in order to open any current account.

MarkBargain wrote: »

As for short term rates, HSBC regular saver states "You can save up to £3,000 at a great interest rate that's fixed for 12 months - either 4% or 6% AER/gross". First Direct states "6.00% AER/gross fixed for 12 months". They may still be worth doing for some, but it seems the attractive rates do not last long.

They last for 12 months, and we have been able to take out new Regular Savers at the same rates for the last few years.

Do you know of any other account that guarantees 6% for 12 months? And at the same time allows monthly deposits?

What interest-paying accounts are in your view a better choice for someone who wants to save £800 a month?

jennifernil

We too have multiple interest bearing current accounts, a few of them we have had for several years, I think we have 15 at the moment, with scope for a few more.

For the ones that offer them, we also have the high interest regular savers,a possible 8 for us at the moment.

After the 12 months the money goes to different accounts and we start new regular savers.

We also picked up a few switching bonuses, 6 in the last 2 years.

MarkBargain

Archi_Bald wrote: »

MarkBargain, your latest two posts confirm that you don't know much about switching, multiple current accounts and/or interest paying accounts. Plenty of people on here, me included, have years of experience with it, and often have a few dozen current accounts, alongside the Regular Savings accounts.

I am not vastly experienced in it, having only three accounts myself. I tend to invest in property, equity ISAs and recently solar panels as these give a good return on a long term basis.

Archi_Bald wrote: »

And what's more important, you don't need to switch in order to open any current account.

True, but then you lose out on getting the £100+ switching bonuses now and probably in the future at the same bank.

Archi_Bald wrote: »

They last for 12 months, and we have been able to take out new Regular Savers at the same rates for the last few years.

I am not saying this is not a good thing to do, simply that it won't suit everyone. If the OP saved £800 a month for 12 months he'd have £9,600. In year 2 the new regular savers would presumably start at £0 again until built back up so he'd need somewhere to put the £9,600.

Archi_Bald wrote: »

Do you know of any other account that guarantees 6% for 12 months? And at the same time allows monthly deposits?

What interest-paying accounts are in your view a better choice for someone who wants to save £800 a month?

There are no higher rates, but the accounts will have limitations when the OP has £9,600 + interest after year one rising to £48,000 + interest after year five. It'll be hard squeezing that lot into many little regular savers!

jennifernil

The matured funds can and should be moved to 5%, 4% and 3% current accounts, or paid into the mortgage if desired.

They cannot be left in the savings accounts.

Some could be "recycled". As far as I know you can currently place £850 per month into 6% accounts, £250 into a 5% account, and £400 into a 4% account. Per person.

planteria

£250 at 6% with HSBC, if you can.
£250 at 6% with M&S Bank.
£250 at 5% with TSB.
upto £400 at 4% with Lloyds.

colsten

Plus
£300 at 6% at FD
£400 at 4% at KRBS if you have access to a KRBS Branch
£hundreds at 3%+ if you have access to some of the other Branch-only accounts

It's hard to see why anyone with a plan to save monthly would want to pass on the regular savings accounts.