Regular savers

colsten

SallyG wrote: »

bit groggy ............T and Cs say
"More than £300 per month can be paid from month 2 onwards if the maximum monthly balance, which starts at £300 in month 1 and increases by £300 each month thereafter, has not been reached."
Does that mean I could pay £25 a month until month twelve and then in that final month make the total up to £3,600?

Yes but you'd only get 1 month worth of interest for the £3,325 that you deposit in the last month

pete-20-11

adindas wrote: »

If you are currently banking with them in some cases you already get a pre-approval ...

FD account was the first time I'd banked with them. Same with TSB.

Tesco - already had an ISA, but no loans/credit.

Nationwide - I was a previous banking customer, plus was applying for a mortgage via an IFA at the same time, so that could apply.

saver861

jimjames wrote: »

0. Not felt the need for one. I do have 10+ credit cards and 10+ current accounts though.

This is the route I take also. Maxing the current accounts and playing the 0% credit cards means regular savers have less advantage. Though I could be missing something too.

colsten

The return from all current accounts can be improved upon by using regular savers. This is particularly true for those that pay less than 5% interest.

One very nice construct is £6K in two Tesco accounts, drip-fed into a FlexClusive Saver over a year. This yields £64 more in interest. It would be £96 more a year if the £6K get drip-fed into 6% RS accounts.

Obviously, if your cash funds are limited and all fit into 5% current accounts, the extra interest potential might not be large enough to excite you.

saver861

colsten wrote: »

The return from all current accounts can be improved upon by using regular savers. This is particularly true for those that pay less than 5% interest.

One very nice construct is £6K in two Tesco accounts, drip-fed into a FlexClusive Saver over a year. This yields £64 more in interest. It would be £96 more a year if the £6K get drip-fed into 6% RS accounts.

Obviously, if your cash funds are limited and all fit into 5% current accounts, the extra interest potential might not be large enough to excite you.

I do need to sit down and do an overview on it. I've gone the traditional accounts Santander, Lloyds and TSB having exhausted Nationwide 12 months. The only real gain I can see immediately would be going from Santander to highest interest Regular Savers.

It would depend on the net advantage gain as to whether it makes it worthwhile. I know the argument of the 'rate per hour' for setting these things up will always win in terms of making money. Equally though, I want to make as much as I can with the minimum amount of accounts.

colsten

The MSE Reg Sav Calc can help to quickly figure out the extra money you can make from adding Regular Savers to your current accounts.

saver861

colsten wrote: »

The MSE Reg Sav Calc can help to quickly figure out the extra money you can make from adding Regular Savers to your current accounts.

Yes thats useful. General rule I use is that regular saver interest is equivalent to half the interest rate for the total deposit on the year.

e.g. 6% with a max of £500 per month is the near equivalent 3% of £6000 for the year.

colsten

saver861 wrote: »

e.g. 6% with a max of £500 per month is the near equivalent 3% of £6000 for the year.

and more if you drip-feed into a regular saver.

adindas

saver861 wrote: »

This is the route I take also. Maxing the current accounts and playing the 0% credit cards means regular savers have less advantage. Though I could be missing something too.

Assuming that you still need the 3% current account, you will get a better return with the following :
From 0% for purchase and or BT and the money which could be assumed already belongs to the bank go to High interest current account.

You the drip fed to money from High interest current account to regular Saver paying interest higher than Current account, e.g. You should aim the RSA paying interest of 4%+.

Depends on the interest you pay on your mortgage, you could also combined it with over payment for your mortgage to get the next lower level of LTV where you will have a better chance of getting lower interest mortgage.

saver861

adindas wrote: »

Assuming that you still need the 3% current account, you will get a better return with the following :
From 0% for purchase and or BT and the money which could be assumed already belongs to the bank go to High interest current account.

I fill the credit cards as much as possible, usually via 0% purchase then BT that to a 0%. Its money for naught!

adindas wrote: »

You the drip fed to money from High interest current account to regular Saver paying interest higher than Current account, e.g. You should aim the RSA paying interest of 4%+.

This is the part I need to sort out. I will get around to it lol.

adindas wrote: »

Depends on the interest you pay on your mortgage, you could also combined it with over payment for your mortgage to get the next lower level of LTV where you will have a better chance of getting lower interest mortgage.

No mortgage. That's partly down to the generosity of the credit card companies in the 90's. I had around £100k mortgage on 0% credit cards for about 10 years - thus £100k interest free mortgage at 5% for 10 years. Save was £5k per year, £50k total, just on that alone, without any compound!!! Best bit of financial work I have ever done or will ever do.

Credit they were giving at the time was crazy - so between myself and Mrs Saver, we notched up the totals. Some cards gave us £20k credit! Cash transfers were 0% also. Way out crazy!