Regular savers

HappyMJ

bravotango wrote: »

Thanks for this.

Maybe I don't open enough current bank accounts, but whenever I have, it has always automatically given me an overdraft facility despite me never requesting one (luckily I've never had to use an overdraft ).

So are you saying that when I apply for a new current account (online or in branch or on the telephone) I have the option of not taking up an overdraft facility; at point of opening, and that will mean they only perform a soft search?

:beer:

Yes there's no need to take an overdraft if you don't need it and with the high interest rates they charge it's probably never going to be used anyway. You have to re-read the application there is usually a box to un-tick refusing the overdraft.

Lolly88

Lolly88 wrote: »

I have 3, that's all I can afford at the moment. Might stretch for HSBC one but going to wait to see if they offer a switching bonus again before I do.

Yes! My prayers have been answered, it was just yesterday I wrote that reply and from today HSBC are offering a new switching bonus. :j

So I'll be switching to them and opening the 6% regular saver.

I also opened a TSB regular saver yesterday so in total I have 4 now, soon to be 5. That will be all the 6% and 5% regular savers.

colsten

bravotango wrote: »

So are you saying that when I apply for a new current account (online or in branch or on the telephone) I have the option of not taking up an overdraft facility; at point of opening, and that will mean they only perform a soft search?

You definitely will be asked whether you want an overdraft or not. Whether declining an overdraft results in a soft search only I would doubt as this is the first time I have heard of it.

pete-20-11

I've got a First Direct and TSB regular saver, saving the maximum allowed each month.

I've just opened a nationwide one too.

I think that, as the interest is paid at the end of the 12 months, they'll all be tax free (opened 3-4 months ago) - as the new tax free savings rules should be in place by then?

I've also got £2k in TSB current and use Halifax as my main bank (£5 per month current, £5 from credit card, plus shopping rewards).

I had a nationwide account but it recently went down to 1% so I moved that money into the new regular savers, paid back part of a car PCP, and made some overpayments to the mortgage.

But looking at the interest rates for regular savers, especially if they are tax free, there's no point overpaying my mortgage at the moment.

bobobski

pete-20-11 wrote: »

I've got a First Direct and TSB regular saver, saving the maximum allowed each month.

I've just opened a nationwide one too.

I think that, as the interest is paid at the end of the 12 months, they'll all be tax free (opened 3-4 months ago) - as the new tax free savings rules should be in place by then?

I've also got £2k in TSB current...

Hello future me! Yes, I think you're right, that where the interest accrues after 5 April 2016 the whole amount is tax-free and not just the proportion "earned" in the new tax year.

bravotango

colsten wrote: »

You definitely will be asked whether you want an overdraft or not. Whether declining an overdraft results in a soft search only I would doubt as this is the first time I have heard of it.

I do think it sounds too good to be true that not taking up an overdraft facility on a new account would result in a soft search and not a hard search being carried out, but as I don't open new current accounts that often, I thought I would ask the experts on the forum.

:beer:

savings_my_hobby

I have zero - looking to get some soon though, drip fed from 3% accounts can add a bit extra to the annual interest.

Archi_Bald

savings_my_hobby wrote: »

I have zero - looking to get some soon though, drip fed from 3% accounts can add a bit extra to the annual interest.

If you dripfeed £500 a month from 2 Tesco current accounts (3%) into a Nationwide Regular Saver (5%), you earn £244 instead of £180. That's 4% interest on your capital.

Dripfeed the same into 6% accounts, and you make £276, 4.6%.

All numbers before any tax. If your total savings are the £6K to start with, you'd not pay any tax on the interest after April 5 2016.

dark.knight_3

colsten wrote: »

You definitely will be asked whether you want an overdraft or not. Whether declining an overdraft results in a soft search only I would doubt as this is the first time I have heard of it.

I have just opened a bank of Scotland current account and requested not to have an overdraft. I signed up with clear score for my credit rating and no hard or soft search had been done by BOS. May be a timing issue but there was a clear score soft search done on the day I installed the app so I doubt whether any searches are done when rejecting the overdraft

Klopek

I've currently got 7 running. I'm not really aware of any other accounts worth having which aren't branch specific - although that's not necessarily a bad thing because the below already exceeds my monthly income.

FD - 6%
M&S - 6%
HSBC - 6%
TSB - 5%
NW - 5%
Lloyds Club - 4%
N&P Gold - 4%